Federal Trade Commission to Investigate the Jailing of Debtors

Getting locked up for unpaid bills is about as depressing a problem as I can imagine, but there's a ray of hope in a story I previously covered about the resurgence of folks with unpaid debts being jailed. The Minneapolis-St. Paul Star Tribune is reporting that following the newspaper's investigation and at the urging of legislators, the Federal Trade Commission will be further investigating the use of arrest warrants by debt collectors to recoup lost money.

Among the concerned advocates for the poor is Minnesota Senator Al Franken, who sent federal regulators a letter demanding immediate action, explaining that debt collection agencies are "abusing the state court system to reap profits." (I'm pretty sure I'm not the only one who thinks Franken is all class, and this sure confirms what I'd long held to be true.) In defense of the families he represents, Franken also wrote, "Minnesota families are hurting right now. They didn't cause this economic crisis, and they shouldn't be victimized by rogue debt collectors."

Arrest warrants in Minnesota against debtors rose a shocking 60 percent in the last four years alone — some warrants against people who owed as little as $100. Last Monday, an FTC report urged for better consumer protection in these matters, though it did not make mention of the (ab)use of arrest warrants. The agency is also calling on states to handle this matter, which has not yet been determined to be a federal issue.

At this point, the FTC inquiry is not a formal investigation, but it's still comforting that federal regulators are looking into the matter — one which, as I wrote before, is certainly not limited to Minnesota. Tell your state representatives to stand up for debtors. The poor don't deserve to be punished this way.

Photo credit: micah420