Federal imprisonment for unpaid debt has been illegal in the U.S. since 1833. It’s a practice people associate more with the age of Dickens than modern-day America. But as more Americans struggle to pay their bills in the wake of the recession, collection agencies are using harsher methods to get their money, ushering in the return of debtor’s prisons.
NPR reports that it’s becoming increasingly common for people to serve jail time as a result of their debt. Because of “sloppy, incomplete or even false documentation,” many borrowers facing jail time don’t even know they’re being sued by creditors:
Take, for example, what happened to Robin Sanders in Illinois. She was driving home when an officer pulled her over for having a loud muffler. But instead of sending her off with a warning, the officer arrested Sanders, and she was taken right to jail.
“That’s when I found out [that] I had a warrant for failure to appear in Macoupin County. And I didn’t know what it was about.” Sanders owed $730 on a medical bill. She says she didn’t even know a collection agency had filed a lawsuit against her. [...]
A company will often sell off its debt to a collection agency, generally called a creditor. That creditor files a lawsuit against the debtor requiring a court appearance. A notice to appear in court is supposed to be given to the debtor. If they fail to show up, a warrant is issued for their arrest.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
6 comments:
dont buy something you cant afford and pay your bills. this recession hasnt affected me one bit because i lead a simple life. no new cell phone every other year. no new car every five years. no eating out (once a year, twice if i bonus).
If you really want to punish the rich,dont go into debt for junk.
Thats good.
The Collection companies are a BIG cause of alot of the mess. Right now I am fighting back and forth with DELMARVA COLLECTIONS. They have 2 accts-One is for a debt that my insurance company was never billed for (and it was covered 100%) and my insurance company says that they legally CANT collect because the creditor had the information but due to their computer malfunctions did not bill it in the allowed time. They hound me weekly and will not stop. Accruing interest. Second one is for a debt that they received a judgement for, attached my wages, collected the debt amount, however did not apply it to the correct account therefore creating a minimal balance of which collected interest. I requested a printout which shows that it had a zero balance last year however somehow I now owe 70.00 due to interest? Of which they hound me weekly. I am tired of collection agencies trying to scare you into paying. They tried to tell me they were gonna attach my wages again. AFter several calls, I found out they cant. I am now hiring an attorney to sue THEM for unfair collection practices. Let them try and arrest me!!!
The part of the comment thread that's missing from these "throw em in prison" commenters is when you have a medical problem and not able to speak for yourself, and without your consent you're taken to a hospital where everything they can get away with charging you for is done. Even with good health insurance much is sometimes not covered. Or an accident on your or others property and you are sued. Many are not prepared for that. Be slow in assuming that there is no way for you to become part of the group that you have so little empathy for, because tomorrow it can easily be you!
Another example of government getting around the spirit of the law. It's supposed to illegal to put folks in a cage for owing money but instead of caging them on those grounds they cage them on contempt charges. That is very dishonorable and these judges should be arrested. Also some folks have to charge their tax bills cause taxes are so high now a days, and others have to charge food and rent in order to keep their family together.
Post a Comment