Stimulus payments will be off-limits to debt collectors

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ELMIRA, N.Y. (WETM)- The two trillion dollar aid package is an effort to help American families and businesses through the economic crisis created by the pandemic.

Although millions of Americans are receiving their stimulus checks, many are still waiting.

New York Attorney General Letitia James, is protecting New Yorkers from debt collectors looking to take billions of dollars in emergency stimulus payments.

The Attorney General issued the official guidance to New York State banking institutions, creditors, and debt collectors, making it clear that stimulus payments are exempt from garnishment under New York law.

“Today, we are taking concrete action to ensure debt collectors keep their hands off New Yorkers’ stimulus payments. This official guidance makes clear that banks and debt collectors cannot freeze or seize stimulus funds that are on their way to New York families, and any institution that violates this guidance will face swift legal action from my office.”

Letitia James, New York Attorney General

Any attempt to garnish stimulus funds from a New York citizen will be a violation.

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