CFPB Encourages Debt Collectors to Not Levy Stimulus Payments

In line with what many have predicted, the CFPB announced yesterday in a press release that the Bureau Encourages Financial Institutions and Debt Collectors to Allow Stimulus Payments to Reach Consumers.

Over the past week, many industry trade associations have coordinated efforts with the CFPB, and other consumer groups to ask Congress for additional legislation to protect stimulus checks. They asked Congress to draft legislation to earmark stimulus payments approved in the recently enacted American Rescue Plan Act of 2021 as exempt from bank attachment. Unlike the last round of stimulus payments, the latest stimulus payments remain open to being seized by bank attachment. The main obstacle to compliance with the guidance is that there is no easy way for a bank to identify COVID payments as is the case with other government payments like social security or veterans’ benefits.

360 Legal’s Client First approach means working with our clients and ensuring proper service of writs of garnishment. 360 Legal can adopt your corporate policy/approach to show empathy for those consumers who are facing financial hardship due to the COVID pandemic. By utilizing our service platform, TotalView, our clients can easily implement special processing rules based on type of documents, client, or other criteria. By implementing 360 Legal’s ‘Client First’ approach, we work with our clients on an individual basis to develop special processing rules or holds to ensure our clients meet all regulatory and CFPB guidance. 360 Legal is a leader in providing client specific and tailored services needed to effectively operate in a rapidly evolving regulatory environment.

We are a leader in working with our clients to implement special service rules or accommodations to any consumer who is adversely affected by the COVID crisis. If your current vendor isn’t treating you like a client or expecting you to conform your operations to the way they do business, give us a call. 360 Legal, can show you the measurable difference working with a Client First vendor can make for your firm.

You, your firm, and your staff deserve better! Call us.

More information about the CFPB press release can be found here