A coalition of consumer and banking groups is urging Treasury Secretary Janet Yellen to take action to close a loophole in the recently passed $1.9 trillion pandemic relief bill that allows the $1,400 direct payments to American families to be seized by debt collectors. The economic impact payments (EIP), as the stimulus checks are formally known, were shielded from garnishment under previous COVID-19 rescue bills. But the American Rescue Plan, which President Joe Biden signed into law on March 11, does not explicitly prevent debt collectors from seizing those funds. “This third round is not exempt, a result we understand was due to limits associated with the budget reconciliation process and application of the Byrd rule during Senate consideration of the bill,” the coalition, which includes the American Bankers Association, the Consumer Federation of America, and the Credit Union National Association, wrote in the letter. Democrats advanced the American Rescue …