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The Treasury Department last week gave U.S. financial institutions the go-ahead to seize coronavirus stimulus payments to pay off individuals' outstanding debts, and one of the nation's largest banks is reportedly already taking advantage of the green light.
Consumer advocates warned about this possibility after Dayen revealed Tuesday that Ronda Kent, chief disbursing officer at the Treasury Department's Bureau of the Fiscal Service, told bankers in a webinar last week that "there's nothing in the law that precludes" financial institutions from seizing stimulus payments to pay off a person's existing debts.
The CARES Act explicitly gives Treasury Secretary Steve Mnuchin the authority to exempt the coronavirus relief payments from debt collection by banks, but Mnuchin—a former Goldman Sachs executive—has yet to exercise that authority despite pressure from Democrats in Congress and state attorneys general.
The Congressional Oversight Commission, which I was appointed to by the Senate minority leader, Chuck Schumer, last week, is the only body that can investigate the decisions made by the Treasury and the Fed without interference from President Trump, who has already tampered with the two other oversight bodies the CARES Act created.
The public’s best hope is for Congress to quickly appoint the other four commissioners and let us get to work on the behalf of taxpayers, tracking the more than $2 trillion in lending that is already in the pipeline
Trump immediately threw the oversight provisions into question, writing in a signing statement Friday night that the new law contains “several provisions that raise constitutional concerns.″ Trump said a new inspector general intended to monitor spending under the law would not be bound by requirements to report to the Congress ”without delay.”
On April 6, Bharat Ramamurti became the first person named to the Congressional Oversight Commission supposed to police the massive coronavirus relief fund. A former top staffer for Senator Elizabeth Warren, Ramamurti expected to have company -- the new law requires congressional leaders to appoint a five-member panel.
He’s still waiting.
As tens of billions of taxpayer dollars from the $2.2 trillion relief bill begin flowing out the door, Ramamurti remains the lone member appointed to the panel. With no colleagues, no staff, and no office, he’s had to rely on one of the few avenues he has to communicate with the public: his unverified Twitter feed.
“I’m eager for the commission members to be named and for us to get up and running,” he says.
“In the meantime, I’m trying to perform some oversight and use what tools I have available right now to start asking some basic questions.
Money is moving around in the blink of an eye and it’s not at all clear what it all means and who it’s helping.”
Haven't even gotten to what the FED is doing without oversight. 4+ in who knows what and none of it to help working people.edit on 16-4-2020 by FyreByrd because: (no reason given)
Economic Impact Payments:
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which, among other things, authorizes economic impact payments (also referred to as “stimulus payments” or “recovery rebate payments”) to eligible individuals. For details on these economic impact payments, please visit www.irs.gov/coronavirus.
I owe delinquent debt. Will my economic impact payment be offset?
The economic impact payments can be offset through the Treasury Offset Program (TOP) only to collect delinquent child support obligations that have been referred by the state to TOP.
How much of my economic impact payment can be offset to satisfy my delinquent child support debt?
Your entire economic impact payment can be offset, up to the amount of your child support debt.
originally posted by: VeeTNA
I read somewhere it was only past-due child support that would be garnished.
If the money is being used to pay off a debt, isn't that a form of debt forgiveness?
Shouldn't that be applauded?