Name: That $1,200 stimulus check? Your bank can reportedly use it to pay off your private loans and fees.
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That $1,200 stimulus check? Your bank can reportedly use it to pay off your private loans and fees.

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Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowSign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking — delivered daily to your inbox.Something is loading.Coronavirus can be seized by your bank to pay down outstanding loans or fees, .&nbsp;The Treasury Department gave banks the green light to grab the payments, according to audio cited in the report.&nbsp;In a webinar with banking officials last week, a Treasury Department official responded to questions about "whether these payments could be subject to collection from the bank to which the money is deposited, if the payee owes an outstanding loan or other payments to the bank," the report said.&nbsp;The official, Ronda Kent, said twice that "there's nothing in the law that precludes that action," and told banks to consult their lawyers about what they should do, according to the report.&nbsp;The Treasury Department did not immediately respond to a request for comment.&nbsp;The checks, which are set to give a maximum of $1,200 to most Americans depending on income, are already being .&nbsp;Lawmakers exempted the checks from being used to pay off debts to federal or state agencies, the report said, but did not exempt private debt collection.For customers who have moved on from an account but left it with a negative balance, JPMorgan Chase told the Prospect that while it would usually pay down a negative balance with an incoming deposit, it will return the payments to the government so that "the US Treasury can then determine the address to mail the full stimulus amount and ensure the former customer gets the full benefit."&nbsp;Sign up for notifications from Insider! Stay up to date with what you want to know.Subscribe to push notificationsAn icon in the shape of a lightning bolt.Keep readingTwo crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowSign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking — delivered daily to your inbox.Something is loading.Coronavirus can be seized by your bank to pay down outstanding loans or fees, .&nbsp;The Treasury Department gave banks the green light to grab the payments, according to audio cited in the report.&nbsp;In a webinar with banking officials last...

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That $1,200 stimulus check? Your bank can reportedly use it to pay off your private loans and fees.

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