Hours after David Dayen reported Thursday at The American Prospect that USAA was seizing coronavirus stimulus money from veterans with accounts at the financial institution, the bank reversed course, telling Dayen in a statement that the money seized would returned.
“For members with negative deposit account balances, USAA will pause the collection of a negative account balance existing at the time their stimulus payment was deposited for 90 days,” USAA spokesman Matthew Hartwig told Dayen. “This will allow members access to their full stimulus payment to help cover the costs of rent, food and other important necessities.”
As Dayen reported Thursday, while USAA’s decision is welcomed, it’s ultimately just one bank of many with the technical ability to seize the funds.
“Only a global solution by Treasury can ensure that the payments get into the hands of individuals struggling to make ends meet and afford basic necessities,” Dayen wrote. “A bank-by-bank or state-by-state solution will ultimately not protect everyone in time.”
Original story below…
The Treasury Department last week gave U.S. financial institutions the go-ahead to seize coronavirus stimulus payments to pay off individuals’ outstanding debts, and one of the nation’s largest banks is reportedly already taking advantage of the green light.
“USAA, the veteran-serving financial institution, took $3,400 in CARES […]
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This is outright thievery and should be punished, not made legal ! What a uncompassionate government we have with Trump running things. He is the worst President in history, and his comrades are also in the same category.