Financial Trades: Banks Working to Ensure Americans Receive EIPs

In a letter to Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) today, the American Bankers Association and three financial services trade organizations emphasized that the industry’s “highest priority is to ensure that economic impact payments reach Americans’ wallets quickly.” The groups underscored the importance of maximizing electronic payments, something ABA has advocated since the program was announced.

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.