Bill Text: MI HR0246 | 2019-2020 | 100th Legislature | Introduced
Bill Title: A resolution to memorialize the United States Department of the Treasury to use its rulemaking authority to exempt Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus payments from private debt collection by banks.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-04-16 - Referred To Committee On Financial Services [HR0246 Detail]
Download: Michigan-2019-HR0246-Introduced.html
house Resolution No.246
Rep. Anthony offered the following resolution:
Whereas, The COVID-19 pandemic has drastically altered the lives of Americans. In order to combat the spread of the virus through social distancing, Michigan has closed all non-essential businesses and requested that residents stay home except for essential activities; and
Whereas, Compliance with social distancing measures has shuttered a majority of the country’s economy. These business closures have forced millions of Americans into a difficult financial situation as their source of income evaporated. In Michigan, more than one quarter of the state’s workforce has filed for unemployment; and
Whereas, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide support to Americans during the crisis. Among the acts provisions is direct aid to residents through stimulus payments by the United States Department of the Treasury; and
Whereas, These stimulus payments will be critical to the financial security of many Americans during the crisis. Without their normal source of income, stimulus payments may be necessary to pay for necessities, such as mortgages and electricity; and
Whereas, Americans may not be able to use their entire stimulus payment if they have outstanding debts with a bank. Banks can choose to take part of the payment for debts with the institution, such as overdraft fees or delinquent loans; and
Whereas, The ability of banks to deduct these amounts from stimulus payments could have a significant impact on their effectiveness. Each of the nation’s 10 largest banks charge overdraft fees of more than $30. In 2017, consumers paid more than $34.3 billion in overdraft fees; and
Whereas, The United States Department of the Treasury has the power to exempt stimulus payments from these collections and ensure that the payments are directed where Congress intended. The CARES Act allows the department to issue regulations or guidance necessary to implement it, including the ability to designate CARES payments as exempt from private debt collections; and
Whereas, The CARES Act is intended to help Americans meet their immediate economic needs during this crisis. Allowing banks to take CARES stimulus payments would undermine the purpose of the act and hurt Americans during these unprecedented times; now, therefore, be it
Resolved by the House of Representatives, That we memorialize the United States Department of the Treasury to use its rulemaking authority to exempt Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus payments from private debt collection by banks; and be it further
Resolved, That copies of this resolution be transmitted to the United States Secretary of the Treasury and the members of the Michigan congressional delegation.
