RICHMOND, Va. (WAVY) — While the $600 economic support payments are officially on the way, a new law from Attorney General Mark Herring and Delegate Hala Ayala protects Virginians ensuring the funds do not go to debt collectors and creditors.
A statement released by Herring’s office Wednesday says the bill was passed in this year’s special legislative session after it was discovered that the first round of $1,200 support payments was vulnerable to seizure or garnishment.
“After nine months of economic fallout from the COVID crisis, these payments are even more important than ever for thousands of Virginia families who are counting on this money to help them make ends meet for another few weeks,” said Herring.
“Though the payments would have been much larger if not for Republican obstruction, they nevertheless offer some much-needed support. I’m glad we were able to identify this problem and enact a solution that will keep this badly needed assistance, and other assistance that may come in the future, from getting scooped up by debt collectors and creditors. People should come first in this crisis, not debt collectors.”
Once is it was discovered that the payments were not explicitly protected from garnishment, Attorney General Herring urged U.S. Treasury Secretary Steven Mnuchin to take steps to make sure the payments would benefit struggling Americans rather than creditors and debt collectors.
The statement also says, “when the Trump Administration failed to act, he [Herring] pursued a state-level solution to ensure these payments benefit Virginians who need help.”
“Attorney General Herring and I put forward this important protection for Virginians because we knew that thousands of Virginia families would struggle to support themselves during this economic crisis, and that every dollar of federal support would need to go directly to food, rent, medicine, and other necessities, not just to the bottom lines of debt collectors and creditors,” said Ayala.
“Working together, we were able to identify and solve a problem to support Virginia families and to give them a little more security and support during these incredibly difficult economic times.”
In the 2020 COVID-19 and Criminal Justice Reform Special Session, the General Assembly passed HB5068 from Herring and Ayala with bipartisan support.
The bill exempts state and federal emergency relief payments from garnishment, attachment, and other legal creditor process seizures. It included an emergency clause ensuring it went into effect immediately upon Gov. Ralph Northam’s signature.
“If anyone believes their economic relief payment has been unlawfully garnished or seized, they should assert their rights under ‘§ 34-28.3. Emergency relief payments exempt‘ directly with the relevant collections agency or financial institution. Virginians can also reach out to Attorney General Herring’s Consumer Protection Section for additional information and assistance if they believe their payment has been illegally garnished.”