Debt collectors could soon come after people's stimulus payments if they have outstanding bills.
If a person has a court judgment against them for unpaid medical bills or credit card debt, the stimulus money could be taken. However, a consumer protection group said it is doing all it can to make sure people can hold on that money. A lot of people in our country are carrying debt. This was true before COVID-19, and even more true during the pandemic.
"Unfortunately, a lot of those debts result in lawsuits and judgments, and when a creditor gets a judgment against you, they can garnish your bank account. That means take money out of your bank account," said Lauren Saunders, associate directors at National Consumer Law Center.
Saunders said her office learned that debt collectors were claiming the first stimulus payments that rolled out last year.
"We saw some debt collectors file garnishment orders against bank accounts and people didn't get their money," Saunders said.
