PROVIDENCE – R.I. Attorney General Peter F. Neronha in a statement warned debt collectors, creditors and financial institutions against seizing stimulus payments distributed under the Coronavirus, Aid, Relief and Economic Security Act, according to a news release.
If any creditors attempt to seize or garnish a resident’s stimulus payment, the R.I. Attorney General’s Office will take legal action against them, the release stated.
Rhode Island law typically exempts certain income and property from seizure or garnishment by creditors. While the CARES Act does not explicitly protect the cash payments to individuals and families as exempt, the R.I. Attorney General’s Office has developed its own guidance for banking institutions and lenders.
Neronha also joined 24 other attorneys general in asking the U.S. Department of the Treasury to protect stimulus checks from seizure under the same policies applied to other government payments, such as Social Security, disability and veterans’ benefits.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@pbn.com.
