Debtors' Prison Hearing
By
Christen Drew
By
Randy Livingston
Story Created:
Jan 11, 2012 at 6:20 PM CST
Story Updated:
Jan 12, 2012 at 7:56 PM CST
WILLIAMSON CO. -- While it's illegal to jail a person based on their debt in Illinois, creditors seem to have found a way to get it done anyway. State officials were in southern Illinois Wednesday looking into the problem. They're trying to find a way to put an end to a trend they call unethical debt collecting.
While battling breast cancer, Lisa Lindsey of Herrin was left with a $280 medical bill. After missing payments, police showed up at her home one night and arrested her.
"They proceeded to let me get dressed as long as they watched. I got dressed, got handcuffed, got put in the front seat of the police car because he said he would at least do that with my neighbors watching. He took me to the Williamson County Jail," cried Lindsey.
State officials say when creditors sue, debtors often don't realize they have a court date. Once they miss court, a warrant is issued for their arrest, and they end up in jail.
"When they don't even know they've been sued. They didn't know they were supposed to be in court," says Brent Adams with Illinois Department of Financial and Professional Regulation.
Adams says, what's worse, once arrested the bond money is given to the creditor. He says it's an unethical way to collect a debt and hopes to put an end to it.
"It's Un-American. It's a bad use of tax payer resources because these are taxpayer dollars being used to incarcerate people who owe a debt to a private party," he says.
Bill Bartmann, who owns a debt collection company, also spoke at the public hearing. He says debt collectors buy debt by state. Bartmann says debt in Illinois is very profitable because under the current system police and judges are all but on the payroll.
"Because they have a court system that will send state troopers to get people out of bed at 11 at night," says Bartmann.
Bartmann says in a little more than a decade, he's collected $15 billion from four and a half million people without ever suing. His collectors simply call debtors and try to negotiate a payment plan.
"People should pay their bills, and we hope they do, but when they can't pay their bills, you should treat them with civility and suing them is not treating them with civility," says Bartmann.
No lenders participated in the hearing. The state's financial and professional regulation board is working to develop new rules for debt collection. The board will take the results of these hearings back to Governor Quinn in hopes of coming up with legislation.
