Some collections agencies and junk debt buyers have been obtaining arrest warrants against debtors. Even though consumers have rights under the FDCPA, arrests for debt are becoming more common, with consumers sometimes spending 48 hours in jail.  Some consumers have even had to stay in jail until they raised the minimum payment.  For people already facing financial hardship, it can be difficult to find the money.  According to the Star Tribune:

"The law enforcement system has unwittingly become a tool of the debt collectors," said Michael Kinkley, an attorney in Spokane, Wash., who has represented arrested debtors. "The debt collectors are abusing the system and intimidating people, and law enforcement is going along with it."

How often are debtors arrested across the country? No one can say. No national statistics are kept, and the practice is largely unnoticed outside legal circles. "My suspicion is the debt collection industry does not want the world to know these arrests are happening, because the practice would be widely condemned," said Robert Hobbs, deputy director of the National Consumer Law Center in Boston.¹

Some of the collections agencies that have sought jail time against debtors include:

Unifund CCR Partners

Portfolio Recovery Association

Debt Equities LLC

Capital One Bank

To avoid a debt collection related arrest warrant, Don't ignore court notices!  Respond to any court orders regarding debt, even if you don't recognize the name of the collections agency. 

If you or a friend has been arrested for debt, CONTACT US. We will evaluate the details of your arrest and determine whether your rights have been violated or not.

(Source: ¹Star Tribune: In Jail for Being in Debt, June 9, 2010)