Oregon Gov. Kate Brown issues order to stop debt collectors from going after stimulus checks

Blank stimulus check

The first batch of payments from the federal coronavirus stimulus bill started hitting bank accounts in recent days. (AP Photo/Matt Rourke)ASSOCIATED PRESS

Gov. Kate Brown issued an order Friday preventing creditors and debt collectors from seizing federal stimulus checks sent to Oregonians.

The CARES Act passed by Congress does not prevent private debt collectors from seizing relief checks, prompting lawmakers and recipients to call on the Treasury Department to protect the relief money.

Brown announced that she was issuing the order to correct an “oversight in the federal legislation, ensuring that Oregonians can use the funds for their intended purpose: covering the costs of essential needs during the COVID-19 public health crisis.”

“Many Oregonians, through no fault of their own, are struggling to pay their bills, their rent or even buy essentials like groceries and prescription drugs,” said Brown in a statement. “These recovery checks were meant to provide relief, not reward debt collection agencies for preying on Oregonians who have lost their livelihoods due to the COVID-19 pandemic.”

Most individuals will receive a relief check of $1,200 as part of the CARES Act. Checks started being deposited in bank accounts this week.

Under Brown’s order, Oregonians receiving stimulus checks will have the same protection from garnishment as recipients of other government payments, such as Social Security, disability, and veterans’ benefits.

However, the order does not stop money being seized because of criminal actions requiring restitution or civil judgments based on a criminal conviction. Past-due child support can also be deducted from the checks before they are deposited in bank accounts.

Other governors have issued similar orders this week, including Washington Gov. Jay Inslee.

-- Jamie Goldberg | jgoldberg@oregonian.com | @jamiebgoldberg

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