Treasury reviews bank seizures of stimulus funds

NEBRASKA - The Treasury Department is looking into whether it can stop debt collectors from garnishing government stimulus payments.

Those $1,200 payments started going directly into American's bank accounts last week.

But here's the problem - once it's there, banks and debt collectors can garnish that money for things like loans, overdraft fees, and other debts.

There's a bi-partisan effort in Congress to have the money barred from debt collection.

Bank of America and Wells Fargo said they would not collect payment from the money.

USAA said last week it would return stimulus funds, after it reportedly took $3,400 from a disabled veteran's family to pay a debt.

The Treasury Department's legal counsel is reportedly researching if it has the authority to stop such behavior on a national scale.

A national advocacy group reports nearly a third of all Americans currently have a debt that is subject to collection.