Are local courts overstepping by helping bill collectors apply the screws?
The practice of suddenly jailing people who have failed to comply with collection requests comes close to violating a ban on imprisonment for debt. Judicial watchdogs are taking note and getting some relief, but many people desperately in debt are still helpless.
By Harris Meyer
Janelle Leslie recently called the police to her home near Newport, Washington. near the Idaho border, to head off a confrontation with her estranged husband. But when the sheriff’s deputies arrived, they told her, to her surprise, that they had a warrant for her arrest. When she asked why, all they could tell her was she had failed to obey a court order, which mystified her. At her request, the deputies waited until she got into the squad car to cuff her, so her 12-year-old daughter wouldn’t see.
Leslie, 39, spent the night of July 31 in a jail cell, which she shared with three female inmates who were in on drug charges and who, unlike her, had been in jail before. “It was a huge shock,” says the soft-spoken mother of three, who answers questions with “yes sir” and “no sir.” She found the experience “pretty hurtful and embarrassing.”
She was released the next day after posting a $90 bail. Still not knowing exactly what she was jailed for, she was told to contact the Yakima County District Court. She did, and learned she had a court date on Aug. 19. After driving four hours to Yakima that day to make the 1:30 hearing, she finally learned that a civil default judgment had been entered against her in 2006 for about $1,000 in unpaid medical debt incurred while she was living in Yakima. A judge subsequently had issued a bench warrant for her arrest because she hadn’t appeared at a hearing to examine her finances for collection purposes.
Leslie says she and her children had moved from Yakima to Alabama in early 2006 and so she never received notice of the judgment or hearing. On top of that, the medical bill was for an MRI for her son that should have been paid in full by the state Medicaid program.
Leslie’s situation is hardly unique. Even though the constitutions of Washington and most other states explicitly prohibit jailing people for debt, and debtors’ prisons in the U.S. were closed in the 19th century, Leslie and many other people in Washington and throughout the country are still being incarcerated in civil debt cases. They typically are charged with contempt of court for failure to appear at a hearing.
In many cases, judges order that their bail money be turned over to the collection agency to satisfy their unpaid debt — a practice the Federal Trade Commission recently urged Congress to halt. Sometimes bail is set at the same amount as the judgment debt, which makes the court look like an arm of the collection agency.
“We’re supplying this big collection tool for collection agencies,” says Fred Corbit, senior attorney for the Northwest Justice Project in Seattle. “Creditors get bailed out, and taxpayers are paying a lot to help them in the process.”
Meanwhile, the American Civil Liberties Union has released a report documenting five cases, including in Washington state, where people have been imprisoned for failure to pay fines and costs associated with their criminal sentences.
While courts in Washington and around the country do not compile statistics on how many people are jailed in such cases, the practice is not at all uncommon. During the Aug. 19 debt collection calendar hearings in the Yakima County District Court, Judge Ralph Thompson issued bench warrants against half a dozen judgment debtors who didn’t show up.
That day, Thompson released Michael Kotelnicki of Selah from jail after Kotelnicki agreed to forfeit his $800 cash bond to Yakima Adjustment Service, a collection agency. According to court records, Kotelnicki had a judgment against him for $704 owed to Yakima Valley Radiology, plus about $300 more in fees and interest. He was arrested because he failed to show up for a financial examination hearing in April.
James Hurley, a Yakima attorney who represents Yakima Adjustment, one of the handful of Yakima debt collection agencies, says he seeks about 60 bench warrants a year, and that a dozen to two dozen of those result in people being arrested and jailed.
The Minneapolis Star-Tribune reported in June that there were 845 arrests in civil debt cases in Minnesota in 2009 — a 60 percent increase in four years. The newspaper’s report attributed the increase to the tough U.S. economy, high consumer debt, and a growing industry led by lawyers who buy up bad debts and use aggressive means to collect.
“It’s within the judge’s contempt powers, and warrants get issued routinely,” says Yakima County District Court Presiding Judge Kevin Roy. “When people are picked up, it gets their attention. I don’t see them coming back a second time.”
"We have someone who incurred a bill, who didn't pay the bill, who ignored the billing from the original creditor,” Hurley explains. These people often have ignored notices from collection agencies before litigation was filed. The purpose of the bench warrant, he adds, “isn’t to arrest the person, it’s to bring them before the court so the court can deal with them.”
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