Debtor's Prison 2011

Lawmakers, judges, and regulators are looking to crack down on the U.S. debt-collection industry's use of arrest warrants to recover money owed by borrowers who are in arrears on credit-card payments, auto loans, and other bills. More than a third of all U.S. states allow delinquent borrowers who cannot or will not pay to be jailed, and judges have signed off on more than 5,000 of these warrants in nine counties since the beginning of this year. Sloppy, incomplete, or even false documentation often can result in borrowers being jailed before they even know they are being sued for an outstanding debt. Earlier this month, Washington state's House of Representatives unanimously passed a bill requiring companies to provide proof that a borrower has been notified about lawsuits against them before a judge can issue an arrest warrant. Meanwhile in Florida, judges will soon receive training about the potential abuses of debt-related warrants; and Illinois regulators also are investigating the use of warrants by debt collectors. Nationwide, the Federal Trade Commission began scrutinizing the use of arrest warrants in debt-collection lawsuits, though a spokesman declined to say whether the inquiry has led to a formal investigation.  So watch out for this and if you have an outstanding bill with a collection company they may be able to issue an arrest warrant for non payment.  Tune in to my show on Monday April 18th as we speak with a gentleman that was arrested for an outstanding debt and had to spend time in jail to pay for the debt.