ACA International on Friday released a letter that was sent by the association to Steven Mnuchin, the Treasury Secretary, countering the ongoing narrative in the mainstream media about how debt collectors are on the hunt for stimulus checks being deposited into individuals’ bank accounts as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The letter also lays out the association’s arguments against the actions being taken by certain states that are “unnecessarily stymieing” communications and leaving consumers “in the dark about how they can address outstanding financial obligations.”
The letter provides details as to why it would be “extremely rare” that the funds from a stimulus check would be subject to a “new proceeding or being garnished as a result of a new action taken by the debt collection industry.”
[EDITOR’S NOTE: Be sure to check out AccountsRecovery.net’s Coronavirus/COVID-19 Resource Page, which includes links to more than 60 articles related to the pandemic’s impact on the debt collection industry.]
The letter fights back against the “inaccurate” picture being painted by consumer advocates that is creating “unwarranted fears” for consumers.
That collectors are “eager to garnish” illustrates “a clear misunderstanding of the garnishment process and the work of the debt collection industry in general,” wrote Mark Neeb, ACA International’s Chief Executive. “Furthermore, it creates a harmful and unwarranted concern for consumers that financial institutions and the debt collection industry are specifically targeting these funds, which could reverse the positive trend of decreasing the number of unbanked consumers during this time of financial uncertainty for the country.”