Monday, April 20, 2020

Banks and CUs Are Working to Ensure Americans Receive Economic Impact Payments

In an April 16 letter to Senators Sherrod Brown (D-OH) and Elizabeth Warren (D-MA), four financial trade groups emphasized that the industry’s “highest priority is to ensure that economic impact payments (EIPs) reach Americans’ wallets quickly.”

In response to concerns lawmakers raised about the garnishment of these payments, the groups noted that more clarity is needed to ensure that EIPs are considered as benefits subject to the federal exemption from garnishment. Without this legal clarity, “depository institutions have no discretion and are obligated to comply with applicable state laws and court-ordered garnishments,” the groups noted.

The groups underscored the importance of maximizing electronic payments. This will enhance the ability of banks and credit unions to identify and protect these payments.

The letter was signed by American Bankers Association, Bank Policy Institute, Consumer Bankers Association, and Credit Union National Association.

Read the letter.

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