C. D. Book

Debtor’s Prisons in the USA

In Debt Collection, Fails, People on May 13, 2011 at 10:48 pm

In the 21st century debtor prisons are alive and well in the United States. Yeah, it’s ironic but true. Corporations and big banks can get away without paying taxes but if a  third-party debt collector buys your debt in particular states the average American is screwed!

Happens everyday and the average American agrees to bend over and  be  f***ed.  The average American who receives a summons to appear in court from a third-party debt collector panics , decides not to appear in court and is therefore owned by the debt collector. Third- party debt collection is big business and profits, especially since the Great Recession. I’m surprised at the number of Americans who are willing to acquiesce to these assholes.

According to a Wall Street Journal article dated March 2011:

More than a third of all U.S. states allow borrowers who can’t or won’t pay to be jailed. Judges have signed off on more than 5,000 such warrants since the start of 2010 in nine counties with a total population of 13.6 million people, according to a tally by The Wall Street Journal of filings in those counties. Nationwide figures aren’t known because many courts don’t keep track of warrants by alleged offense. In interviews, 20 judges across the nation said the number of borrowers threatened with arrest in their courtrooms has surged since the financial crisis began

The WSJ article cited above is must reading. Here is another WSJ article worth reading.  Most third -party debt  collection lawsuits brought have no standing. (Please read my three-part series regarding debt collection). Americans are doing themselves a horrendous disservice by not appearing in court to answer these lawsuits that have no standing.  The FTC, the federal government agency charged with implementing the Fair Debt Collection Practices Act issued a report in July 2010 calling the third-party collection process a broken system.

Americans need to stand up and demand answers. If third-party collectors are going to purchase debt for pennies on the dollar then they damn well have the proof you owe the debt before taking you to court.

They don’t have the proof , just intimidation tactics. People, do your research: don’t become a victim.


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