This week, the federal government began sending out the first of the $1,200 checks from the coronavirus stimulus package. With unemployment offices backed up across the country, many people who have lost their incomes are desperately waiting on the money to cover basic necessities like food and rent. But as David Dayen reported in The new American Choice on Tuesday, the money might fall in the hands of banks and private debt collectors before some people can spend it on the things they desperately need, creating a bastardization of the stimulus’ original intent that will only further hurt an already deflated economy.

The fresh CARES Work, as it is recognized, will not allow stimulus checks as garnished on account of federal otherwise condition bills. Nevertheless exact same can not be told you with respect to personal costs. Thereon issue, Congress punted the choice to new Treasury Agencies, and this declined to write legislation who does enjoys banned personal collectors and you may banks from bringing money out of the stimuli inspections. Read more