ATTORNEY GENERAL BANS DEBT COLLECTOR FROM TOUCHING NEW YORKER STIMULUS PAYMENT

NY Attorney General bans debt collectors from garnishing residents’ stimulus checks

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Posted: Apr 18, 2020 / 02:08 PM EDT / Updated: Apr 27, 2020 / 07:02 PM EDT




(WIVB) – Debt collectors won’t be able to garnish New Yorkers’ emergency stimulus payments, New York Attorney General Letitia James announced on Saturday.

James has issued official guidance to New York banks, creditors and debt collectors to make it clear that the stimulus payments are exempt from garnishment under New York law.

“Today, we are taking concrete action to ensure debt collectors keep their hands off New Yorkers’ stimulus payments,” James said in a statement. “This official guidance makes clear that banks and debt collectors cannot freeze or seize stimulus funds that are on their way to New York families, and any institution that violates this guidance will face swift legal action from my office.”

The guidance is based on multiple state and federal consumer protection laws.