The Consumer Financial Protection Bureau (CFPB) has joined the National Association of Federally Insured Credit Unions (NAFCU) in advocating consumers receive full economic impact payments (EIPs).
CFPB personnel indicated the EIPs are provided by the American Rescue Plan Act, with CFPB Acting Director Dave Uejio recently releasing a statement encouraging financial institutions to ensure consumers receive the full allotment of EIPs.
Authorities noted NAFCU and other groups advocated federal lawmakers to pass stand-alone legislation addressing garnishment to ensure American families would receive benefits as intended to fulfill the common goal of protecting payments from garnishment within the practical realities of existing financial institution systems.
Uejio expressed concern some EIPs would not reach consumers and funds would be used to settle fees, past-due debts, or other liabilities, officials noted, adding Uejio referenced the bureau was engaged with financial industry trade associations on financial institutions’ efforts and the bureau would work with consumer groups and monitor its consumer complaint database to understand how the issue impacts consumers.
“Credit unions are working to get stimulus funds into their members’ accounts as soon as possible,” NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said. “Credit unions are not-for-profit regulated depository institutions who protect their members’ funds with the safety of the full faith and credit of the US Government, unlike fintech payment providers.”