Banks might be the first in line to seize the $1,200 coronavirus pandemic relief checks, according to a news report.
The American Prospect emphasized that Congress did not exempt Cares Act payments from private debt collection – which means, banks have the power to use the transferred checks to settle consumers’ delinquent loan or past-due fees.
Congress exempted individuals from debt collection only if the debt is owed to federal or state agencies, unless the debt involves a child-support payment.