Coronavirus relief checks can be taken by your bank and used to pay off debts and outstanding fees, according to a report by the Prospect.

A Treasury Department official said of the move that "there's nothing in the law that precludes that action," according to audio obtained in the report.

The checks are being deposited currently via direct deposit, and some people have already received theirs.

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Coronavirus relief checks can be seized by your bank to pay down outstanding loans or fees, according to a report from the Prospect's David Dayen.

The Treasury Department gave banks the green light to grab the payments, according to audio cited in the report.

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.

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.

The Treasury Department did not immediately respond to a request for comment.

The checks, which are set to give a maximum of $1,200 to most Americans depending on income, are already being sent to people through direct deposit.

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."