Debtors’ prisons

Monday, June 14, 2010 | 2:05 a.m.

A Minnesota woman was arrested this year after being stopped by a sheriff’s deputy, and she spent a night in jail. Her crime? She missed a court hearing over an unpaid debt.

It’s not a crime to owe money, but a person can be jailed for missing a court hearing — and debt collection companies have no problem with that. Steven Rosso, a Minnesota attorney who does debt collection work, told the Minneapolis Star Tribune jail is “a harsh sanction. But sometimes, it’s the only sanction we have.”

In a recent story, the newspaper explored the trend of people being jailed because of their debts, which is driven by high consumer debt in a bad economy and a growing debt-collection industry. Consumer advocates say the debt-collection industry is aggressive, well-organized and well-funded. And they’re running a booming business.

Companies that specialize in collections buy old debt from businesses, including credit card companies, at pennies on the dollar. The collection efforts typically start with letters and calls, but if those fail, they can sue in civil court.

If the debt collector wins a judgment against the person who owes money, and the person doesn’t pay, he is in violation of a court order, and a judge could order his arrest. Or, if the person doesn’t show up to a court hearing, he can find himself in contempt of court, and facing a warrant.

Consumer advocates say that many people don’t understand what’s happening. Debt is often sold from one firm to another, and as a result, the consumer may deal with different collection firms, leading them to believe they already dealt with the issue or that it’s a scam. The industry is also known for its aggressive, threatening tactics, but who would think they could put you in jail for failing to pay a debt?

“The law enforcement system has unwittingly become a tool of the debt collectors,” said Michael Kinkley, a Washington state attorney who has defended people jailed because of their debts. “The debt collectors are abusing the system and intimidating people, and law enforcement is going along with it.”

People are responsible for their debts, but throwing them in jail is wrong. It can’t be a good business practice either — how do you collect from someone who’s in jail and unable to work? Regardless, it certainly isn’t a good use of tax-supported police resources.

The bottom line is that too many people are hurting and to throw them in jail only compounds the problem. It makes criminals of people who are down on their luck due to the poor economy. It’s time to end this despicable practice.