Nebraska Attorney General Doug Peterson today alerted creditors, debt collectors, and financial institutions that Nebraska law may exempt American Rescue Plan Act stimulus checks from attachment, garnishment or, execution for certain low-income consumers.
The American Rescue Plan Act was signed into law on March 11 and provides emergency assistance for individuals and families affected by the COVID-19 pandemic. Under the Act, eligible individuals and families can receive cash assistance including, a one-time cash payment of up to $1,400 for each eligible individual.
Nebraska law exempts certain income and property from execution and attachment by creditors and debt collectors. The purpose of these exemptions is to ensure individuals have enough income and property to provide for basic necessities like housing, food, and utilities.
According to the Attorney General, any attempt or threat by a creditor or a debt collector to garnish or attach funds provided through the American Rescue Plan Act, if that property would have otherwise been exempt under Nebraska law, may be considered an unfair trade practice in violation of Nebraska’s Consumer Protection Act, Neb. Rev. Stat. § 59-1602.
Attorney General Peterson reminds Nebraskans that he and his staff are diligently monitoring and investigating consumer complaints related to COVID-19. Consumers are encouraged to visit www.protectthegoodlife.nebraska.gov for additional tips for protecting themselves during the COVID-19 crisis.
Consumers should file a complaint through the Attorney General’s website or send an email to firstname.lastname@example.org if they experience aggressive debt collection during this crisis.