They are making a comeback as attorneys take over debt collection agencies and use the sheriff to enforce their repayments. Small numbers of people are quietly being thrown in jail across the country. This story comes to us from the Star Tribune in Minneapolis – St. Paul, Minnesota.
“In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009…..Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington…..In Illinois and southwest Indiana, some judges jail debtors for missing court-ordered debt payments. In extreme cases, people stay in jail until they raise a minimum payment. In January, a judge sentenced a Kenney, Ill., man “to indefinite incarceration” until he came up with $300 toward a lumber yard debt.”
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As the economy doesn’t improve, we will see more of this and have to stand up to it. This is called Unsecured Debt for a reason. It is UNSECURED. There is no collateral for them to keep or collect if you are unable to pay. The Credit Card companies have no legal grounds to collect the money. That is why they sell it to Collection Agencies. The secret they don’t tell anyone is that YOU never signed a contract with the Collection Agency. Therefore they are considered Third Party Interlopers by the law, with no legal standing to collect anything from you. There is no legal grounds for you to even answer their phone calls, much less meet them in court. However, once you make the choice to go to court, then you have “agreed” to abide by whatever the court decides. That is when they get you.
Tags: collection agencies, credit card, debt, debtor's prison, debtors, depression, government, jail, recession, unemployment
