March 18, 2021
If you are one of the millions of people who have received stimulus payments or will soon receive another round of payments (also known as Economic Impact Payments or EIPs), there may be steps you can take to ensure you have the full benefit of those funds by protecting them from bank and credit union setoff if your account is overdrawn.
It’s important to know that if you have a negative account balance, in most states, banks and credit unions are legally allowed to take money that goes into your account to pay themselves back for what you owe.
If you think your bank or credit union will take or has taken a portion of your EIP to cover money you owe them – give them a call. Each financial institution has its own policies, but many are willing to work with customers who have been financially impacted by COVID-19.