I wrote about this in a previous article but now the Wall Street Journal has confirmed that there is indeed a widespread use of what appear to be debtor’s prisons in many states in America even though such practices were outlawed federally and in most states in 1833. This practice is increasing with the deepening and lengthening of this recession. So just when people are hardest hit by job loss, high unemployment, higher commodity prices, and housing price collapse, they are also getting hit with being put in jail for owing purely private debts.
If you have already completely paid off a late or missed bill, then there is not much you can do to fix it. What you need to pay attention to right now are any outstanding debts. Make a list of who you owe, and how much you owe, and start paying them off one at a time. Contact debt collection companies uk if you need more information on where to send the payment to. You may even be able to negotiate a payment agreement on larger balances.
It has to be reflexive; when anyone calls about the loan that you aren’t completely sure is current, you have to automatically deny it’s yours. If you show the slightest amount of hesitation, they can use that as proof that you do owe them something. All you need to do is to ask them to send you proof. The Fair Debt Collection Practices Act requires that they provide you with this kind of proof.
In California I am not currently aware of people being issued arrest warrants for owing purely personal debt but be aware of situations that could amount to debtor’s prison. Courts always maintain that they put people in jail for violating a court order and not for owing debts and thus they get around the constitutional prohibitions. Some creditors in some states have used this loophole to just get a judge to order payment of the debt and when payment is not made then the judge issues an arrest warrant for failing to follow a judicial order. This amounts to the exact same thing as a debtor’s prison.
The consumer should also request to see the new terms of a contract or agreement by the third party debt collector and the original creditor. It would be very wise to request this information from the time that you receive a letter from the debt collection agency or if the company calls you regarding the bill. Charge offs can seriously harm your credit report.
Request your debt collector to stop collecting. Yes, you can actually request to a creditor or debt collector to stop contacting you about your debts by sending a letter. Under the law, creditors and debt collectors should respect this request. Nevertheless, this does not discharge you from your responsibility to pay for your debts.
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