ABA, Groups Urge House to Protect EIPs from Garnishment

Along with a coalition of bank trade groups and consumer advocacy organizations, the American Bankers Association today urged the House to pass S. 3841, which would protect 2020 economic impact payments made under the CARES Act or other legislation from court-ordered garnishment. The Senate passed the legislation unanimously last week.

While the CARES Act exempted these payments from being offset for debts owed to state and federal agencies, except for child support, it did not address court-ordered garnishments with which depository institutions are obliged to comply.

“We urge the House of Representatives to follow the Senate’s lead and quickly approve S. 3841 and provide this certainty to ensure that American families will receive these benefits as intended to fulfill our common goal of protecting these payments from garnishment within the practical realities of existing financial institution systems,” the groups said.