Debt Collectors Prevented From Garnishing Federal Stimulus Funds

Debt Collectors Prevented From Garnishing Federal Stimulus Funds

I.E. Voice News Staff | Contributor

Sacramento – Effective immediately and retroactively, debt collectors are now prevented from garnishing federal stimulus dollars in California.

The newly signed executive order applies to most residents except those owing child support and/or alimony.

California Governor Gavin Newsom declared, “The executive order denies the ability for debt collectors to garnish your CARES Act dollars.”

Newsom continued, “It’s also retroactive. So, if you are a debt collector, and you did garnish those checks, you have got to give them back.”

On Thursday, April 23, 2020 the governor also announced the implementation of a “90-day forbearance period” on student loan debt has successfully negotiated with 21 of the 24 largest, student loan agencies in the state. Under the agreement, the governor explained, there will be no late fees or fines. In addition, borrowers’ credit scores will not be impacted.

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