Governor Newsom announces order preventing debt collectors from taking stimulus funds.


Governor Gavin Newsom signed an executive order keeping debt collectors from garnishing any stimulus check money in California.

“It’s also retroactive. So, if you’re a debt collector and you did garnish those contributions, those checks, you gotta give them back,” he said.

“Impacting over 1.1 million Californians with loan debt, no burden now placed on them over the next 90 days, no impact to their credit ratings, no late fees or fines and actual support in terms of getting new payment plans,” Newsom said.

The CARES Act (Coronavirus Aid, Relief, and Economic Security Act), passed by Congress, gave Americans an advanced tax credit of up to $1,200, depending on income.

The agreement was reached with 21 out of 24 of the largest student loan services in the state, Newsom said. Under the agreement, there will be no late fees, fines and no impact to credit scores.