CFPB asks industry to aid consumers in getting stimulus funds

Federal Issues CFPB Debt Collection Covid-19 American Rescue Plan Act of 2021 Consumer Finance

On March 17, CFPB acting Director Dave Uejio issued a statement encouraging financial institutions and debt collectors to allow Economic Impact Payment (EIP) funds to reach consumers. Uejio expressed concerns that EIP funds—distributed through the recently enacted American Rescue Plan Act of 2021 (covered by InfoBytes here)—may be intercepted to cover consumers’ overdraft fees, past-due debts, or other financial liabilities. Uejio applauded proactive measures taken by industry members to ensure consumers have the ability to access the full value of their EIP funds, noting that “many financial institutions have pledged to promptly restore the funds to the people who should receive them.”