This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Consumer Credit Website Weighs In On Return Of 'Debtors Prison' For Non-Paying Borrowers

CHICAGO, Jan. 10, 2013 /PRNewswire/ -- Can you go to jail for not paying what you owe? Due to a legal loophole being taken advantage of by debt collectors, in some States you most certainly can. That is the warning that has been issued by bad credit services authority The website is calling for the practice to be ended immediately, declaring it a "trick being used that flies against the spirit of justice and law in the U.S."

"Creditors are taking advantage of a trick of law to squeeze money out of debtors," stated Ariel Pryor, site representative, adding, "pay-or-appear orders ignore the circumstances of the borrowers and it is outrageous that such tactics are being resorted to by creditors."

According to the website, victims are issued a court summons for an asset examination, if and when the debtor fails to appear, lawyers apply for a "body attachment" and a warrant to be issued for the arrest of the borrower. Upon arrest, bond is typically set at the amount owed to the creditor and the debtor can either pay or be held in jail until the date of their appointed hearing.

"Even used as a last resort, the jailing of borrowers in default is a perversion of American justice," stated Mr. Pryor.

According to a recent Wall Street Journal report, more than one-third of States allow for non-paying borrowers to be jailed, with more than 5,000 judge-signed warrants being issued since the start of 2010.

"This is a practice we cannot allow to grow. Hard-working Americans deserve better than a return to financial practices common in centuries past. The squeeze being put on the very families most in financial need is unconscionable," added Mr. Pryor.

Illinois passed " The Debtor's Rights Act of 2012" in an effort to curb the manipulation of the court system by requiring two "pay or appear" notices to be issued before an arrest warrant can be issued. 

According to, it only applies to Illinois residents and doesn't protect the consumer enough, and they only see the practice growing if something isn't done to address the issue on a national level. At this time the FTC fair debt collection practices act outlines a number of unfair collecting practices including harassment, and non-judicial threats.

"It is vital to remember that people who have run into financial hardship, who have a bad FICO score or have fallen behind on their repayments, are still deserving of being treated with dignity and respect," added Mr. Pryor.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs