WASHINGTON–The Consumer Financial Protection Bureau has issued a statement expressing concern that stimulus payments won’t reach some Americans and will instead go to debt collectors.
Many Americans were able to begin accessingfunds effective March 17.
“The Consumer Financial Protection Bureau is squarely focused on addressing the impact of the COVID-19 pandemic on economically vulnerable consumers and is looking carefully at the stimulus payments that millions are now receiving through the American Rescue Plan,” said Acting CFPB Director Dave Uejio. “The Bureau is concerned that some of those desperately needed funds will not reach consumers, and will instead be intercepted by financial institutions or debt collectors to cover overdraft fees, past-due debts, or other liabilities.
“In recent days, many financial industry trade associations in dialogue with the CFPB have said they want to work with consumers struggling in the pandemic,” Uejio continued. “Many of these organizations have told us they have begun or soon will take proactive measures to help ensure that consumers can access the full value of their stimulus payments. If payments are seized, many financial institutions have pledged to promptly restore the funds to the people who should receive them. We appreciate these efforts, which recognize the extraordinary nature of this crisis and the extraordinary financial challenges facing so many families across the country.”
Plans to ‘Closely Monitor’
Uejio said he applauded states that have taken action to “protect” stimulus funds.
“We will remain in touch with them to better understand the effectiveness of these actions. I’ll also stay in touch with the Bureau’s consumer stakeholders who provide valuable ‘voice of the consumer’ insight on problems with accessing their stimulus payments,” he said. “The Bureau will continue to closely monitor consumer complaint data and other information that will help us to better understand how these issues are affecting consumers.
Resources for Consumers
The CFPB said consumers should monitor their bank and credit union accounts or use the IRS’s Get My Payment tool to confirm EIP funds have been deposited into their accounts.
The CFPB further noted that a new CFPB consumer advisory offers advice on steps consumers can take if they believe their bank or credit union has withheld their stimulus payment to cover an overdrawn account balance.