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| Some Banks Keep Customers’ Stimulus Checks if Accounts Are Overdrawn | Some Banks Keep Customers’ Stimulus Checks if Accounts Are Overdrawn |
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| For some struggling Americans, the arrival of a deposit from the Treasury Department to help with basic expenses like rent and groceries during the coronavirus crisis was something to count on — until their financial institutions got in the way. | For some struggling Americans, the arrival of a deposit from the Treasury Department to help with basic expenses like rent and groceries during the coronavirus crisis was something to count on — until their financial institutions got in the way. |
| Frustrated customers say banks have been seizing some, or all, of their relief payments because their accounts are overdrawn, in some cases as a result of pandemic-caused hardship. | Frustrated customers say banks have been seizing some, or all, of their relief payments because their accounts are overdrawn, in some cases as a result of pandemic-caused hardship. |
| Joseph James Davis Jr. said his bank in Mena, Ark., took more than $2,000 after he fell victim to a check-cashing scam in a moment of desperation. | Joseph James Davis Jr. said his bank in Mena, Ark., took more than $2,000 after he fell victim to a check-cashing scam in a moment of desperation. |
| “I’ve never been scammed before,” said Mr. Davis, 41. | “I’ve never been scammed before,” said Mr. Davis, 41. |
| Mr. Davis said the work for his landscaping business had dried up because of the coronavirus crisis, so he responded to an online ad that promised payment to anyone who would agree to put advertising decals on a vehicle. | Mr. Davis said the work for his landscaping business had dried up because of the coronavirus crisis, so he responded to an online ad that promised payment to anyone who would agree to put advertising decals on a vehicle. |
| Mr. Davis was sent a check, but was told he had to pay for the decals with some of the money. After he sent off the payment, his bank, Union Bank of Mena, told him the check had been bogus and he had to repay it $2,784. | Mr. Davis was sent a check, but was told he had to pay for the decals with some of the money. After he sent off the payment, his bank, Union Bank of Mena, told him the check had been bogus and he had to repay it $2,784. |
| He couldn’t. And on Wednesday, Mr. Davis saw the $3,400 relief payment — $2,400 for himself and his wife and $500 for each of his two stepchildren — land in his bank account. The bank kept all but $611. | He couldn’t. And on Wednesday, Mr. Davis saw the $3,400 relief payment — $2,400 for himself and his wife and $500 for each of his two stepchildren — land in his bank account. The bank kept all but $611. |
| Kevin Williams, president of Union Bank of Mena, did not respond to calls and emails seeking comment on Thursday. | Kevin Williams, president of Union Bank of Mena, did not respond to calls and emails seeking comment on Thursday. |
| The phenomenon is swiftly becoming a political issue, with Treasury Secretary Steven Mnuchin fielding calls from senators urging him to ensure that relief money isn’t garnished. Banks are legally allowed to withhold funds that go into accounts that have negative balances, and no specific provision in the CARES Act, the $2 trillion relief package that authorized the stimulus payments, prevents banks from taking customers’ stimulus money to cover debts. | The phenomenon is swiftly becoming a political issue, with Treasury Secretary Steven Mnuchin fielding calls from senators urging him to ensure that relief money isn’t garnished. Banks are legally allowed to withhold funds that go into accounts that have negative balances, and no specific provision in the CARES Act, the $2 trillion relief package that authorized the stimulus payments, prevents banks from taking customers’ stimulus money to cover debts. |
| USAA, a financial services company that serves members of the military and their families, was also garnishing stimulus payments before reversing itself on Thursday. | USAA, a financial services company that serves members of the military and their families, was also garnishing stimulus payments before reversing itself on Thursday. |
| A Minneapolis couple with a USAA account — a disabled veteran and his wife — were anxiously awaiting their relief payments, the wife said. She and her young family had just moved into their own apartment after living with their extended family while they struggled to get out from under thousands of dollars of debt. | A Minneapolis couple with a USAA account — a disabled veteran and his wife — were anxiously awaiting their relief payments, the wife said. She and her young family had just moved into their own apartment after living with their extended family while they struggled to get out from under thousands of dollars of debt. |
| But the woman, who did not want to be identified by name out of concern that her financial troubles could harm the careers of family members, had to quit her job after being unable to find child care when some Minnesota day care centers closed because of the virus. She had been counting on a relief payment to help pay rent and buy formula for her 10-month-old daughter. | But the woman, who did not want to be identified by name out of concern that her financial troubles could harm the careers of family members, had to quit her job after being unable to find child care when some Minnesota day care centers closed because of the virus. She had been counting on a relief payment to help pay rent and buy formula for her 10-month-old daughter. |
| But USAA told the couple that it was keeping the money because their account was overdrawn. | But USAA told the couple that it was keeping the money because their account was overdrawn. |
| The woman showed The New York Times screenshots of a Twitter exchange between her husband and a USAA representative. Using USAA’s verified Twitter account, the representative explained that if the family’s bank account had a negative balance, “any deposits to the account will go toward the negative amount owed to the bank.” | The woman showed The New York Times screenshots of a Twitter exchange between her husband and a USAA representative. Using USAA’s verified Twitter account, the representative explained that if the family’s bank account had a negative balance, “any deposits to the account will go toward the negative amount owed to the bank.” |
| After this article was published on Thursday, USAA said it would pause overdraft collections for the next 90 days. | After this article was published on Thursday, USAA said it would pause overdraft collections for the next 90 days. |
| “This will allow members access to their full stimulus payment to help cover the costs of rent, food and other important necessities,” Matthew Hartwig, a bank spokesman, said in an email. “Beginning as early as today, we will apply this policy retroactively to any member accounts with a negative balance at the time the first stimulus checks were deposited, so that members will have access to their stimulus funds.” | “This will allow members access to their full stimulus payment to help cover the costs of rent, food and other important necessities,” Matthew Hartwig, a bank spokesman, said in an email. “Beginning as early as today, we will apply this policy retroactively to any member accounts with a negative balance at the time the first stimulus checks were deposited, so that members will have access to their stimulus funds.” |
| The government checks are meant to cushion the pandemic’s financial blow to some of the hardest-hit Americans. Anyone who earns up to $75,000 in adjusted gross annual income and has a Social Security number will receive $1,200. Married couples who file joint tax returns will receive $2,400 if their adjusted gross income is under $150,000. The amount declines for those who make more. | The government checks are meant to cushion the pandemic’s financial blow to some of the hardest-hit Americans. Anyone who earns up to $75,000 in adjusted gross annual income and has a Social Security number will receive $1,200. Married couples who file joint tax returns will receive $2,400 if their adjusted gross income is under $150,000. The amount declines for those who make more. |
| In a March 2018 survey, the Pew Charitable Trusts, a nonpartisan research institute, found that more than 39 million Americans had incurred overdraft fees within the past year, with people essentially using overdrafting as credit. | In a March 2018 survey, the Pew Charitable Trusts, a nonpartisan research institute, found that more than 39 million Americans had incurred overdraft fees within the past year, with people essentially using overdrafting as credit. |
| Several politicians are calling for banks to stop garnishing stimulus payments. On Wednesday, Senators Elizabeth Warren of Massachusetts and Sherrod Brown of Ohio, both Democrats, implored the head of a bank trade group to tell its members to halt the practice. | Several politicians are calling for banks to stop garnishing stimulus payments. On Wednesday, Senators Elizabeth Warren of Massachusetts and Sherrod Brown of Ohio, both Democrats, implored the head of a bank trade group to tell its members to halt the practice. |
| “For weeks, we have pressed the Treasury Department to exercise its authority and ensure that Americans receive the full amount of their stimulus payments,” the senators wrote in a letter to Rob Nichols, the chief executive of the American Bankers Association. “While Treasury has refused to follow congressional intent, that does not give banks license to steal the stimulus payments from their customers.” | “For weeks, we have pressed the Treasury Department to exercise its authority and ensure that Americans receive the full amount of their stimulus payments,” the senators wrote in a letter to Rob Nichols, the chief executive of the American Bankers Association. “While Treasury has refused to follow congressional intent, that does not give banks license to steal the stimulus payments from their customers.” |
| By contrast, the CARES Act specifically prohibits garnishing stimulus money for state or federal debts, except for court-mandated child support. | By contrast, the CARES Act specifically prohibits garnishing stimulus money for state or federal debts, except for court-mandated child support. |
| Not every bank is keeping its overdrawn customers’ money. Bank of America, JPMorgan Chase, Citibank and Wells Fargo — the nation’s four biggest banks — are pausing their collections on negative account balances to give customers access to the stimulus. | Not every bank is keeping its overdrawn customers’ money. Bank of America, JPMorgan Chase, Citibank and Wells Fargo — the nation’s four biggest banks — are pausing their collections on negative account balances to give customers access to the stimulus. |
| “We are temporarily crediting the overdrawn amount for customers, giving them full access to their stimulus payment,” said Anne Pace, a spokeswoman for Chase, in an email to The Times on Wednesday. “We hope this gives them a chance to catch their breath.” | “We are temporarily crediting the overdrawn amount for customers, giving them full access to their stimulus payment,” said Anne Pace, a spokeswoman for Chase, in an email to The Times on Wednesday. “We hope this gives them a chance to catch their breath.” |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| On Monday, a group of 25 state attorneys general also registered their disapproval of garnishing relief checks. “During this public health and economic crisis, the states do not believe that the billions of dollars appropriated by Congress to help keep hardworking Americans afloat should be subject to garnishment,” they wrote in a letter to Mr. Mnuchin. | On Monday, a group of 25 state attorneys general also registered their disapproval of garnishing relief checks. “During this public health and economic crisis, the states do not believe that the billions of dollars appropriated by Congress to help keep hardworking Americans afloat should be subject to garnishment,” they wrote in a letter to Mr. Mnuchin. |
| The American Prospect this week unearthed an audio recording of a Treasury official discussing with banks how stimulus money should be handled when there are outstanding loans or other debts. The official, Ronda Kent, said that “there’s nothing in the law that precludes that action” and that it was up to the discretion of the banks. | The American Prospect this week unearthed an audio recording of a Treasury official discussing with banks how stimulus money should be handled when there are outstanding loans or other debts. The official, Ronda Kent, said that “there’s nothing in the law that precludes that action” and that it was up to the discretion of the banks. |
| Progressive watchdog groups have seized on the issue to criticize the Trump administration’s handling of the economic crisis, describing it as a giveaway for banks. | Progressive watchdog groups have seized on the issue to criticize the Trump administration’s handling of the economic crisis, describing it as a giveaway for banks. |
| “This money should be going toward food, rent and medicine — it’s not the time to hand out favors to debt-collection industry donors or pad some big bank’s bottom line,” said Jeremy Funk, a spokesman for Allied Progress. “Secretary Mnuchin needs to ensure that these $1,200 checks go straight into Americans’ pockets, where they belong.” | “This money should be going toward food, rent and medicine — it’s not the time to hand out favors to debt-collection industry donors or pad some big bank’s bottom line,” said Jeremy Funk, a spokesman for Allied Progress. “Secretary Mnuchin needs to ensure that these $1,200 checks go straight into Americans’ pockets, where they belong.” |
| The Treasury Department had no comment. | The Treasury Department had no comment. |
| Another hopeful stimulus recipient described having to fight for hours with her credit union on Wednesday before it would release the full $2,400 deposit. Initially, the institution, Digital Credit Union, which is based in Marlborough, Mass., kept $1,000 to make up for the customer’s overdrawn account balance. | Another hopeful stimulus recipient described having to fight for hours with her credit union on Wednesday before it would release the full $2,400 deposit. Initially, the institution, Digital Credit Union, which is based in Marlborough, Mass., kept $1,000 to make up for the customer’s overdrawn account balance. |
| The customer did not want to be identified because she was worried that the lender would close her accounts or penalize her for speaking publicly. She and her husband have four children. His hours at a group home for children were recently cut to three days a week, she said. She is out of work. | The customer did not want to be identified because she was worried that the lender would close her accounts or penalize her for speaking publicly. She and her husband have four children. His hours at a group home for children were recently cut to three days a week, she said. She is out of work. |
| She said that after multiple calls, a representative had agreed to return the $1,000 to her. She said she was sharing her story because she was worried that other people would not have the stamina to fight for the money the way she had. | She said that after multiple calls, a representative had agreed to return the $1,000 to her. She said she was sharing her story because she was worried that other people would not have the stamina to fight for the money the way she had. |
| Edward Niser, a spokesman for Digital Credit Union, said in an email that the institution could not comment on individuals, citing privacy reasons. | Edward Niser, a spokesman for Digital Credit Union, said in an email that the institution could not comment on individuals, citing privacy reasons. |
| “In these difficult times,” he said, “we are there to support our members and we are making every possible effort to follow evolving federal and state guidance.” | “In these difficult times,” he said, “we are there to support our members and we are making every possible effort to follow evolving federal and state guidance.” |