Saturday, February 11, 2012

Use Of Arrest Warrants By Bill Collectors To Squeeze Consumers For Cash Probed By Some Lawmakers, Government Regulators

Lexology reports:
  • Some lawmakers and regulators are probing the use of arrest warrants by the U.S. debt collection industry to recover money owed by borrowers behind on loans, credit card payments, and other bills.

  • Warrants are generally issued for contempt of court after the borrower fails to comply with a court order to repay a debt or to appear in court. Although U.S. statistics are unknown because many courts do not track the number of warrants issued by offense, judges interviewed by the Wall Street Journal reported that the number of borrowers threatened with arrest has vastly increased since the beginning of the financial crisis.

For more, see Lawmakers investigating use of arrest warrants against debtors (may require subscription; if no subscription, TRY HERE; or GO HERE - then click the appropriate link for the story).

Thanks to Deontos for the heads-up on the story.