Friday, July 16, 2010

Debt collection broken

let's take a look

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Legislators pledge to fix state's 'broken' debt collection system

A day after a federal agency declared America's debt collection system "broken," two Minnesota lawmakers pledged to write legislation to better protect consumers.


A day after a federal agency declared America's debt collection system "broken," two Minnesota lawmakers pledged to write legislation to better protect consumers who are sued or jailed over their debts.

Sen. Ron Latz, DFL-St. Louis Park, and Rep. Joe Mullery, DFL-Minneapolis, said Tuesday that they intend to address a growing public concern -- highlighted in a continuing Star Tribune series, "Hounded" -- that debtors are being sued for money they don't owe and, increasingly, jailed when they fail to appear in court. Latz and Mullery plan to introduce a package of debt-collection reforms when the Legislature reconvenes in January.

The Star Tribune investigation found that the use of arrest warrants against debtors jumped 60 percent in the past four years, with 845 cases in 2009. Some debtors who were arrested said they were unaware they had been sued for their debts and were required to appear in court.

http://www.startribune.com/politics/98380794.html

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