New York Blocks Debt Collectors From Covid Stimulus Payments

May 13, 2021, 7:09 PM

Federal stimulus payments from the most recent coronavirus relief package are now officially protected from debt collectors in New York.

New York Gov. Andrew Cuomo (D) signed legislation Thursday blocking collectors from garnishing any money from the $1,400 stimulus payments included in the American Rescue Plan, the $1.9 trillion Covid-19 package President Joe Biden signed into law in March.

The federal stimulus plan didn’t specifically shield relief checks from garnishment by debt collectors, but the bill Cuomo signed (S.5923-A/A.6617-A) bars them from accessing those funds, with an exception for child and spousal support and fraud recoveries.

Under the New York ...

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