April 17, 2020

Banking Commissioner Issues COVID-19 Stimulus Check Guidance to Connecticut Chartered Banks and Credit Unions

HARTFORD —  This week Connecticut residents began to see their stimulus money directly deposited into their accounts. In keeping with the intent of the program that these monies be used to meet the basic needs of residents, Banking Commissioner Jorge Perez issued guidance to Connecticut state-chartered financial institutions urging them to not use stimulus funds deposited into accounts to offset outstanding debts customers and members may have with their financial institution. The guidance comes in response to Governor Lamont’s continuing directive to state agencies to identify ways to assist Connecticut residents.

“As stimulus checks begin to reach Connecticut residents, we want to be sure the money is used for its intended purpose. Many people are now finding it difficult to meet basic needs, like food, medicine and housing. It is in this spirit that we issued our guidance to Connecticut state-chartered banks and credit unions. Connecticut financial institutions have been a great partner during this public health emergency. I applaud those institutions who were proactive in establishing similar policies before checks were issued.  We appreciate everyone’s continued support.” said Commissioner Jorge Perez.

The guidance urges Connecticut state-chartered banks and credit unions to not use a stimulus payment to satisfy an overdraft that existed prior to a stimulus payment being deposited to the account, or to exercise rights of offset against the account with respect to other debts.  The guidance covers a period of 30 days from the date the stimulus payment is deposited to the account, and financial institutions are strongly encouraged to document any offset with the express agreement of the customer or member. If a financial institution’s systems automatically apply a stimulus payment to an account overdraft, the financial institution is urged to reverse the application of the stimulus payment as promptly as possible. 

Consumers are urged to reach out to their financial institutions with questions. They may also request assistance through the Department’s website. 

Click here to read the full guidance.

Media Contact

Matt Smith, 860-240-8105
matthew.smith@ct.gov