Credit Repair Report: 77 Million Americans Face Arrest Due To Old Debts

Milwaukee, United States – January 31, 2017 /PressCable/ —

77 million American’s may be subject to being arrested for old unpaid student loans, payday loans, credit card debts, medical debt and other types of consumer debts. 1 in 3 U.S. adults have ‘debt in collections’ source CNN-Money

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Many debt collection companies are starting to use a little know loophole in the law to have debtors arrested when they refuse to answer to a judgement that a debt collection company has attained legally. Last year a Texas man was arrested by U.S. Marshals for not paying his $1,500 federal student loan that he received in 1987. This loophole allows debt collection companies to request that a warrant for any debtor that doesn’t show up to court and answer to a judgement issued against them.

In past years courts shied away from allowing this tactic to be used by debt collection companies. Debt collection companies had also opted for a more civil approach, making calls and sending letters requesting payment. But with debt collection profits souring they have started using various tactics including having debtors arrested.

According to the STrib, Richfield woman Joy Uhlmeyer was picked up in a squad, booked, fingerprinted and held overnight in Anoka County jail this past Easter for defaulting on credit card payments. And she is one among many.

“I wonder what kind of violent crime goes down, by the way, while local law enforcement officers are busy cuffing and transporting the unemployed or financially-struggling people who can’t make the Visa payment in my neighborhood? Huh.”

The STrib reported

In Minnesota, judges have issued arrest warrants for people who owe as little as $85 — less than half the cost of housing an inmate overnight. Debtors targeted for arrest owed a median of $3,512 in 2009, up from $2,201 five years ago.

Those jailed for debts may be the least able to pay….

Because debt collection has become so lucrative, collectors are willing to spend more money to go after smaller debts. Usually these debts are purchased for pennies on the dollar, even if they collect a small $250 debt the return on investment is extremely high. Another tactic called “Stacking” is being used to balloon the amount a debtor owes. This is accomplished by adding debt transfer fee’s, attorney fee’s, max interest rates in some states upwards of 28%. After reviewing client files some were ballooned upwards of $2,000 to $4,500 more than what the consumer originally borrowed. In one specific case the original borrowed amount was $500 and the ballooned judgement was $4,500.

Consumers do have rights, but they are usually too busy trying to make ends meet and pay their household bills. If they had the money they would pay. These types of outcomes can be avoided by simply opening up communications with the debt collector. The number one goal of a debt collector is to get paid and they will always work out a deal if the communications are open.

Contact Info:
Name: Steven A. Williams
Organization: The Credit Repair Shop, Inc.
Address: 6234 West Capitol Drive, Milwaukee, Wisconsin 53216, United States

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