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Major banks criticized over holding back $1,400 stimulus payments

Several banks are facing major criticism over their handling of the $1,400 stimulus checks that were recently signed into law by President Joe Biden in the latest round of COVID relief.

The IRS has started distributing the third round of checks, which are worth $1,400 per person for individuals who make less than $75,000 per year. Couples are receiving $2,800 if they make less than $150,000.

JPMorgan, Chase, and Wells Fargo customers are frustrated over an issue that the banks say is beyond their control.

Finger Lakes Partners (Billboard)

The IRS started issuing payments last week. However, many customers of those banks, as well as Capital One say they were told the funds would not be available until at least March 17.

The frustration is born out of other banks issuing credits to customer accounts immediately, and then settling with the federal government when those funds actually are transferred from the federal government to them.

In fact, many banks started doing that as early as March 12 when Biden signed the bill. The banks said collectively that, if people wanted their money sooner, it would be up to the federal government to make the electronic transfer happen faster.