Insidious new debt collection tactic: tossing people in jail

http://www.walletpop.com/blog/2010/07/15/americas-new-debtor-prison-jail-time-being-given-to-those-who/

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Here's how it works: First, the collections company files a lawsuit against the debtor, which requires them to appear in court. If the debtor doesn't show up, the creditor wins a default judgment against them. This allows them to ask the court to schedule another hearing at which the judge can go through the debtor's assets and determine if actions such as wage garnishments or bank account seizures can take place.

If the debtor doesn't show up to that hearing, the hammer of justice can come down hard and fast. From there, the judge can order the debtor in contempt of court and issue a warrant for their arrest. If this seems unnecessarily punitive, the price to get out of jail is even more so, say consumer advocates: Generally, the judge sets the cost of bail at the amount of the disputed debt, an amount which is then turned over to the creditor.
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WTF. Seriously, I believe that debt collection agencies have to rank among the most evil, vile, disgusting groups out there. It's unthinkable that such a tactic could be used in this day in age. Especially when we're going through one of the worst economic periods in our country's history with so many millions being out of work. Thanks to the GOP, we can probably expect to see many more people getting locked up because they're not able to earn money to pay their debts (let alone their daily living necessities).

The notification rules need to be made more rigorous.

The creditors are mass processing the suits, if all the debtors started showing up and demanding the paper trail proving debt the creditors would be overwhelmed. Hence, they do the minimal to notify the debtor.

It's a racket.

One of the people responding to that blog tells about a collection agency who filed a lawsuit in another state, and deliberately had the subpoena sent to his old address, even though they knew he had moved years before that.

Debt collectors deliberately don't want you to know about what they're doing until it's too late, so they'll do things like only sending process servers and legal notices to old addresses, so you don't know you have a judgment against you until it's already done.

They want to suddenly ambush you with garnishments, arrests and such, not give you fair warning so you can exercise your legal rights.

Did I forget to mention that debt collectors are subhuman pieces of shit that should be sent to camps?

Maybe it would be a good idea to know the facts before judging?

when it will be necessary to be there.

So, when are YOU going to court?

You should be ashanmed.

They can't pull that kind of crap here.

looks like the appropriate outcome to a system where money is actually debt. That is, especially when corporations, (that is the owners of We, the Livestock) can take advantage of prison labor at the cost of next to nothing. A boom of debt criminals will increase manufacturing and productivity. Isn't that the brass ring of a profit-driven agenda?

Money being debt itself makes it clear that stealing your debt, (not obliging the lender) will be argued as stealing money itself.

There is no fix or way out of this system as it continues to its conclusions, like it or not. Accepting that, first and foremost may seem fatalistic and seem like surrender, but it is not. That's the last place one considers looking, that's all. It is where we can emerge if we are open to seeing our own investment in the game and the part we are playing. Hard choice. Everything?

After all, we weren't those bad people who got arrested, so why should we care?

Chickens + Home = Roosting.

Like I said, debt collectors will deliberately send process servers and legal notices to old addresses & such, so you don't get fair warning you're being sued, and you don't know you've got a judgment or a warrant on you until it's too late.

It's illegal, but they get away with it.

The sad part is they think they are clever. They are wrong.

That's, um, the law.

The FACT is that most debtors don't show up because they can't or won't pay.

They don't know it's me, and they don't know that I'll bring pain to them if they try to get evil, but
they are trying every intimidation tactic in the book on people stateside who have a vague connection to me.
I checked them out with a relative who is a tax commissioner in their state, and who has connections to that
state's attorney general. She says they even harassed her husband for months in a case of mistaken identity.
They just found the first guy they could with the right name, and didn't even bother to check if they had the
right man, and weren't interested when informed of it.

I did some checking on them, and these people are the absolute scum of the earth. They try their intimidation tactics
on a mass basis, lying about who they are, and hoping to catch a few people unaware. They would do well to keep
out of states with loose laws concerning firearms ownership. There are plenty of judges that would be very receptive
to self-defense arguments when they see who the offending party is.

ANY case that gets filed in ANY Court carries with it the requirement to show up when you're summoned. If you don't show up to pretty much ANY hearing, there's going to be some bad circumstances. Lesson to be learned from all this? Show up to your court dates.

Oh, and I can tell you that here in Ohio (and other States might be similar, so check into it), if you don't show up to a Judgment Debtor Exam, the Creditor can ONLY get a warrant for your arrest if you have been PERSONALLY SERVED. That means someone had to have actually HANDED you a copy of the hearing notice. Mail service isn't enough. If you got personal service of the Judgment Debtor Exam and you STILL don't show up, there will be a warrant issued for your arrest.

And when you're picked up and ask to be released on bond, the Judge will contact the Creditor and ask them what they want your bond to be. The standard answer? The amount of the debt. So you get all this trouble, and you end up paying the debt anyway.

Trust me, when you find yourself in some bad circumstances, the last thing you want to do is blow off the Creditor. They will always accept something before they'll accept nothing. Get in there and negotiate. Communication is the key to keeping a bad situation from getting worse.

Check the parenthetical, first sentence, second paragraph.

Just trying to give people the benefit of my knowledge and experience. Sorry if that offends you. Heaven for fend.

100% of the time. These collection agencies routinely violate the law knowing that they'll come out ahead most of the time.

hand the documents to a person AFTER checking their ID to make sure they are the right person.

Debt collectors are often unscrupulous, but some of the responsibility here also lies on the debtor.

For many people, it's hard enough to pay their rent/mortgage, groceries, medical bills, utilities, and other basic necessities. What happens if you lose your job, or can only find a job paying near minimum wage? You sound as if most debtors are scofflaws, trying to buck the system.

they can be discharged under every chapter of bankruptcy.

Very few judgments will make it to the point of wage garnishment or judicial liens as at that point most smaller creditors will cut their losses to avoid legal fees.

The law overwhelmingly protects debtors in this country.

:crazy:

In the past, a creditor could truly have a debtor thrown in prison for owing money, not simply for missing a court date. How did that benefit the creditor, other than serving as some sort of retribution?

Nobody is gunning for retribution for debts in our society. Money is the only thing that matters.

WorkCamp America®

Where corporations administer the military and prison industries for the ruling parasites.

Oh wait; that's not true. This is an example of why people aren't that thrilled with the Democrats. This is one area where they should have really acted. One more time: It's the economic reform, stupid! Change the economic equation. Just think, the extremely rich are harassing people.

stripping them of everything is back again? How did we first get rid of these dangerous pests? Redo that....

The Corporations win again.

Don't skip your court date and you can avoid this ever happening.

never received proper notice is to go to court and state as much to the judge.