Third Round of Stimulus Checks Can Be Seized by Debt Collectors

If you have unpaid debts, then you might not see your third stimulus check.

Fox business is reporting that language in the new stimulus package will allow debt collectors to seize your $1,400 check.

The American Rescue Plan is very different from the first two rounds of stimulus. The Democrats used a legislation process called budget reconciliation to bypass the planned filibuster by Senate Republicans to stall the bill.

Consumer and banking groups are now asking lawmakers to pass a standalone bill to stop creditors from taking the checks from families that so desperately need the money after being damaged financially from the pandemic.

The American Bankers Association said in a statement:

The economic impact payments are intended to help families purchase food and other necessities to make ends meet.

Sen. Ron Wyden, D-Ore., chairman of the Senate Committee, has said he intends to craft a bill to protect citizens from having their stimulus checks taken by private debt collectors.

The IRS began sending out the third round of stimulus checks on March 12. You can check the status of your deposit here.