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Texas Consumer Law & Debtor's Rights Blog » Archive for June 2010

New Tactic for Some Debt Collection Firms

June 9th, 2010 | Add a Comment

The Minnesota Star Tribune has written a very intriguing article regarding a new tactic by some debt collectors, having a warrant issued for the arrest of debtor for failure to comply with some court order.  The link to the article is posted below.   In my opinion, this is just another “distasteful” practice being employed by the debt collection industry.  The article illustrates how debt collectors are attempting to use local law enforcement and courts to coerce debtors into payment of debts.   Debtor’s prisons are unconstitutional and were abolished.  However, debt collectors have found a subtle procedural avenue to skirt their way around this prohibition against debtor’s prisons.   Technically, the debt collectors are not having debtors placed in jail for the debts per se.  The debtors are being arrested and jailed for failure to appear to a court appearance or for contempt for violating a court order.  So in the end, the debt collector is really getting the same result or benefit as a debtor’s prison.  Once again, this story should illustrate why it is important for any debtor that receives a lawsuit or notice from a court of law regarding a debt to not ignore it.  More importantly as I have stated in other blog posts, a debtor should never let a debt collector or creditor obtain a default judgment against the debtor in the first place!!!!

In jail for being in debt | StarTribune.com.

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Filed under: Debt Collection Practices, Judgments & Liens, Recent Developments in Consumer Law

New York Judges Question Suits by Debt Collectors

June 6th, 2010 | Add a Comment

Posted below is a very interesting article from the New York Times regarding debt collection lawsuits in the New York state court systems.  The article is very revealing of the abusive and harassing practices of some debt collection law firms and debt buyers.  More importantly, the article illustrates that at least some judges in New York are feed up with debt collectors filing lawsuits in which they know they will be unable to prove in court.  They basically file these lawsuits in hopes of obtaining a default judgement or having a judge that is going to “rubber stamp” these type of debt collection lawsuits on behalf of the debt collector.    The same type of activity goes on here right in the Great State of Texas.  I hope that judges here in Texas, especially those in the justice of the peace courts, take a stand against these abusive practices by debt collectors and make debt collectors actually prove up these lawsuits according to the rules of law and evidence.  Take the lead against this abusive behavior just some of your fellow colleagues in New York.

New York Judges Question Suits by Debt Collectors – NYTimes.com.

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Filed under: Consumer Law, Debt Collection Practices, Featured, Recent Developments in Consumer Law