Debt collectors beware: Ohio law protects stimulus checks

ajc.com

State law protects federal coronavirus stimulus checks from creditors and financial institutions, according to Ohio Attorney General Dave Yost.

“The stimulus checks were intended to be used during an emergency – to put food on the table, keep the lights on, and a roof over our heads,” Yost said. “It wasn’t meant to pay off an old bill.”

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He said he sent notices to relevant agencies and posted a notice on his website.

The Coronavirus Aid, Relief, and Economic Security will provide the majority of U.S. taxpayers a $1,200 payment to help them through the coronavirus pandemic, which has triggered mass layoffs in the U.S., including Ohio.

The CARES Act bans stimulus checks from being garnished for debts owed to federal or state governments, no federal provision bans private debt collectors from that, Yost said.

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“Sometimes, state law gives greater protection than federal law,” he said.

The CARES Act does allow for stimulus checks to be garnished in cases where people are behind on child-support payments.

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