The Consumer Financial Protection Bureau (CFPB) released a statement encouraging financial institutions and debt collectors to allow stimulus payments to reach consumers.
CFPB acting Director Dave Uejio said the bureau is focused on addressing the pandemic’s impact on economically vulnerable consumers and is concerned that some of the funds will not go to them, but instead will be intercepted by financial institutions or debt collectors to cover overdraft fees, past-due debts, and other liabilities.
“In recent days, many financial industry trade associations in dialogue with the CFPB have said they want to work with consumers struggling in the pandemic,” Uejio said in a release. “Many of these organizations have told us they have begun or soon will take proactive measures to help ensure that consumers can access the full value of their stimulus payments. If payments are seized, many financial institutions have pledged to promptly restore the funds to the people who should receive them. We appreciate these efforts, which recognize the extraordinary nature of this crisis and the extraordinary financial challenges facing so many families across the country.
“I applaud the actions of our state partners, who have taken rapid action and concrete measures to protect stimulus funds,” he added. “We will remain in touch with them to better understand the effectiveness of these actions. I’ll also stay in touch with the bureau’s consumer stakeholders who provide valuable ‘voice of the consumer’ insight on problems with accessing their stimulus payments. The bureau will continue to closely monitor consumer complaint data and other information that will help us to better understand how these issues are affecting consumers.”