So here& #39;s my scoop: banks have been given the green light by regulators to take the $1,200 CARES Act payments and use them to offset an individual& #39;s existing debts. https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/">https://prospect.org/coronavir...

I got audio of a webinar between regulators and bank compliance officers. Banks have been asking whether they can use the payments to offset debts. "There& #39;s nothing in the law that would preclude that action," Treasury said twice on the call. https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/">https://prospect.org/coronavir...

This can even happen in the case of a "charged-off" account with a negative balance that a customer abandoned & thought was closed. If direct deposit was set up with the IRS to go to that account, the bank can keep the money & pay off old debt with it. https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/">https://prospect.org/coronavir...

I checked with the five largest consumer banks. Only JPMorgan Chase said they would not use CARES Act payments to offset debts. The other four gave no response. https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/">https://prospect.org/coronavir...