Ally Bank is wiping out customers' negative balances so they can receive their full stimulus payment [View all]

[mfcorey1]

Ally Financial, the digital-only bank with some $180 billion in assets, said Wednesday that it was forgiving many customer's debt in order for them to receive their full $1,200 coronavirus stimulus payment.

As part of the relief package passed by US lawmakers in March, banks can use the direct deposit payments to pay off debts owed by the customer receiving the check. Ally, however, said it would erase any overdrafts and not ask for customers to repay anything.

"It is, in effect, a gift to customers in need," the bank said.

In recent weeks, as the coronavirus pandemic forced businesses around the world to close, sending tens of millions of Americans to unemployment assistance and plunging the US economy into recession, Ally has allowed customers to defer payments on many loans.

https://www.businessinsider.com/ally-forgives-bank-overdrafts-customers-receive-full-stimulus-relief-check-2020-4