If you have any unpaid debts, you might never see your third stimulus check.
According to FOX Business, Americans that owe money could have their $1,400 seized by collectors.
Unlike with the first two rounds of stimulus checks, debt collectors will have permission to tap into the third round of money because of how the American Rescue Plan came to pass.
Per the outlet, congressional Democrats passed the legislation using a process called “budget reconciliation,” which allowed them to bypass a filibuster by Senate Republicans.
Since then, consumer and banking groups have been urging lawmakers to pass a standalone bill that would close the loophole and prevent creditors from being able to cash the checks before they reach the intended accounts.
“The economic impact payments are intended to help families purchase food and other necessities to make ends meet,” the American Bankers Association and a coalition of groups wrote in a letter to congressional leaders Tuesday. “Many people were already struggling prior to the coronavirus crisis and millions have now been laid off or had their hours cut,” the association added.
Sen. Ron Wyden, D-Ore., chairman of the Senate Committee, revealed his plans to introduce a separate bill to block private debt collectors.
"While Democrats intend to protect the third payment from private debt collectors, Senate rules did not allow us to include that protection in the American Rescue Plan,” he said on Monday.
While the first $1,200 stimulus check that went out last spring did not ban debt collectors from taking the money, many state and local governments took matters into their own hands and adopted protections to prevent it from being allowed.
By the second stimulus package of $600, Congress included provisions blocking creditors.
The most recent $1.9 trillion COVID-19 relief package was signed into law by President Joe Biden on Thursday. Individuals making under $75,000 will get $1,400 or $2,800 for married couples filing jointly and making under $150,000.
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The IRS began sending and depositing the checks on March 12, according to CNBC.
You can now track the status of your money on the Internal Revenue Service’s (IRS) website. Taxpayers can use the IRS’s Get My Payment tool. The tool is free to use.
Those who previously set up a direct deposit account with the IRS will receive the checks in the first round.
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