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Debtors' Prison Is Back -- and Just as Cruel as Ever
Daily Finance.com ^ | 8/30/2012 | Ross Kenneth Urken

Posted on 08/31/2012 7:20:00 AM PDT by ex-Texan

To most of us, "debtors' prison" sounds like an archaic institution, something straight out of a Dickens novel. But the idea of jailing people who can't pay what they owe is alive and well in 21st-century America.

According to a report in The Wall Street Journal, debt collectors in Missouri, Illinois, Alabama and other states are using a legal loophole to justify jailing poor citizens who legitimately cannot pay their debts.

Here's how clever payday lenders work the system in Missouri -- where, it should be noted, jailing someone for unpaid debts is illegal under the state constitution.

First, explains St. Louis Post-Dispatch, the creditor gets a judgment in civil court that a debtor hasn't paid a sum that he owes. Then, the debtor is summoned to court for an "examination": a review of their financial assets.

If the debtor fails to show up for the examination -- as often happens in such cases -- the creditor can ask for a "body attachment" -- essentially, a warrant for the debtor's arrest. At that point, the police can haul the debtor in and jail them until there's a court hearing, or until they pay the bond. No coincidence, the bond is usually set at the amount of the original debt. * * *

(Excerpt) Read more at dailyfinance.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Front Page News
KEYWORDS: debtorsprison; economy; finance
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To: Gaffer
I’m not buying this ancient debtor’s prison crap.

Right! It's total BS. They are arrested for failing to show up for court. NOT for debt!

51 posted on 08/31/2012 11:03:39 AM PDT by Onelifetogive (I tweet, too... @Onelifetogive)
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To: rarestia

The payday loan companies target those who live paycheck to paycheck. So taking out these loans puts them is a spiraling cycle of relying on those loans. These companies know they are high risk loans and work the system through tactics like this story.


52 posted on 08/31/2012 11:08:12 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Onelifetogive

Thats a distinction without a difference.


53 posted on 08/31/2012 11:10:52 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Jotmo
My heart goes out to you. I've had people I care about lose their homes - and seen the pain it's caused... so painful. It affect everyone. All of us are afraid to spend anything extra for fear we could be next. The press - groups like the New York Times don't cover the pain of widespread unemployment - BECAUSE the President is a Democrat. When Romney's in office, the dem PR Firms will send the New York Times information of who to interview for stories about the damage high unemployment causes. Until then, the suffering is invisible.

Liberal elites benefit from human misery... makes it even creepier. Broken people are reliable democrat voters and keep liberal elites in power.

Have you noticed liberals don't accuse us of hating them any more? The reason that stopped it it dawned on them that we really do hate them - and we're not ashamed of it anymore...

54 posted on 08/31/2012 12:16:26 PM PDT by GOPJ (“If you want to know who controls you, find out who you are not allowed to insult.”TravisMcGee)
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To: ex-Texan

Don’t borrow money at all. Borrowed money is supporting a multi-faced, monstrous tyrant. Cut personal costs. Repair things. Save.


55 posted on 08/31/2012 2:52:20 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: Bikkuri; RJS1950

Not only that, but in Texas, if the father DIES (and is no longer making child support payments, of course), he is added to the states registry of “dead-beat dads.”

My brother found this gem when researching men’s rights during divorce in Texas.


56 posted on 08/31/2012 2:59:41 PM PDT by Hulka
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To: RJS1950

may want to prowl round this website.. Mr. Nolan could be a Freeper...

http://www.mensbusinessassociation.com/


57 posted on 08/31/2012 3:07:55 PM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: ex-Texan
So, people should be able to never pay back their agreed-to debt? Get real.

I encourage everyone to help out friends and relatives with their debt problems. My wife and I have do just that. But those who lent money deserve to be paid back - including “rich bankers” - because that money isn't that bankers money, it's some savings account holder's money. You have seen, “It’ A Wonderful Life,” right?

Sure, the FDIC insures the money to a limit, but that insurance premium is paid by the bank's customer account holders—the “banker” is just the manager of that whole relationship.

Don't be stupid.

58 posted on 08/31/2012 3:50:17 PM PDT by ConservativeMind ("Humane" = "Don't pen up pets or eat meat, but allow infanticide, abortion, and euthanasia.")
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To: ex-Texan

Debt collectors are complete scum.


59 posted on 08/31/2012 6:00:54 PM PDT by RKBA Democrat (WILLARD 2012 - It's not just a campaign, it's a conservative suicide pact!)
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To: rarestia

How is it possible? Because they are Indians.


60 posted on 08/31/2012 7:42:00 PM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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To: ex-Texan

I figured it’d be the lib-RINO’s who would bring back debtors prisons


61 posted on 09/01/2012 4:41:13 AM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: rarestia

135% interest??

That is probably the annual rate, but the loan term is probably for 2 weeks.


62 posted on 09/01/2012 4:44:25 AM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Springfield Reformer

I bet no poor farmer could get a good loan around the year of the Jubilee.


63 posted on 09/01/2012 4:48:49 AM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Hulka

Yup.. pathetic, isn’t it?! :/


64 posted on 09/01/2012 7:26:52 AM PDT by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: Bikkuri
Don’t forget to mention they also take away the drivers license and passport... If the man lives in a city with no public transportation, that is a nightmare :/
(Or are overseas.. you end up stuck overseas because you can’t make the money to go back to the states).


As the rule goes, "the more laws you make, you make more criminals." I think Ayn Rand said it but in many more words. That is plain wrong, many times without a driver's license, you're screwed unless you drive illegally, I've known people who just say "fudge it" and have done this.
65 posted on 09/01/2012 9:09:14 AM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: Bikkuri

One more thing, all you will do is create more types of situations like you see in the 1994 movie, “Falling Down,” one of my favorites.


66 posted on 09/01/2012 9:10:24 AM PDT by Nowhere Man (June 28th, 2012, the Day America Jumped The Shark.)
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To: Eva

Yes. Doing Okay now.

Thanks


67 posted on 09/01/2012 10:33:52 PM PDT by Jotmo (Whoever said, "The pen is mightier than the sword." has clearly never been stabbed to death.)
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