So here'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's existing debts. https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/
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'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/
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/
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/