Debt collectors can take your stimulus check
An important warning for anyone with unpaid debts as stimulus checks are being sent from the $1.9 billion American Rescue Plan -- debt collectors can take advantage of your extra income.
Durham attorney Edward Boltz said debt collectors won't just go in and take your money, but there are some exceptions.
"Unfortunately, because of the negotiations in Congress, they weren't able to put those protections in the bill like they have for previous stimulus checks," said Boltz.
He added that the debt collection depends on where you are with your bills and debt.
"For most debt, credit cards, medical bills, generally, they can’t just go in and seize your bank account," said Boltz. "They first have to start a lawsuit against you and get a judgment where the court says, ‘Yes you do owe this money.'"
Boltz said Americans who signed up for direct deposit are most vulnerable.
"Those are the ones that are most likely for it to hit their bank account and immediately be seized for whichever credit. If you're getting [the stimulus check] by mail, it's less likely to happen," said Boltz.
He added to check with your county to see if you have any judgments. In North Carolina, those can last as long as 20 years.
"It may be something that you completely forgot about that’s just lurking out there that could spring up and bite you," Boltz said.
Something else to beware of: The Better Business Bureau said this is something scammers can take advantage of. Some red flags to look out for include unsolicited calls and texts or anyone asking for immediate information or payments.
