(SitNews) Anchorage, Alaska - This week, 14 organizations representing consumers, small businesses, labor unions, Indigenous communities, and direct service organizations sent a letter to Representative Don Young, Senator Lisa Murkowski, and Senator Dan Sullivan, calling on the lawmakers to support and pass legislation that includes a complete freeze to garnishments on economic impact payments, with the exception of child support, due to the COVID-19 public health and economic crisis. 

Currently, there is a federally mandated freeze on federal garnishments, except for child support, due to the pandemic. As taxpayers are receiving their stimulus checks, private corporations like banks are taking payments to pay back past debt, debt collectors are collecting payments without the consumer’s consent, and payday and car-title lenders are withdrawing straight from borrowers’ accounts. “Absolutely no money for bills or gas to go hunting. We are struggling meal to meal, not paycheck to paycheck…bills can wait but putting food in my two precious men is more important.” said one participant in the AKPIRG advocacy testimonial portal, created to elevate voices around Alaska struggling financially due to COVID-19. This participant identified themselves as “Z”, living in Utqiagvik.

Approximately 32% of Alaskans have debt in collections, leading many to take out a payday loan. In Alaska, a $100, 14-day loan has an average APR of 521%. Debt in collections and payday loans are disproportionately held by low-income communities and communities of color.

Other organizations signing on include Alaska AFL-CIO, The Alaska Center, Alaska Community Action on Toxics, Anchorage Community Land Trust, Bread Line Soup Kitchen, Fairbanks Climate Action Coalition, Fireweed Collective, Kids Corps Inc., Move to Amend Alaska, Native Movement, The Northern Justice Project, Save Our State Alaska, and The Writer's Block Bookstore and Cafe.

AKPIRG is also urging the Alaska Attorney General and the state legislature to institute a garnishment freeze. 

Edited By Mary Kauffman, SitNews

Source of News:

Alaska Public Interest Research Group (AKPIRG)
www.akpirg.org

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