JC Comments on the Return of Debtor’s Prison

I read this Yahoo article dated Mon, Apr 23, 2012 and I thought, “You’ve got to be joking!”

Although the U.S. abolished debtors’ prisons in the 1830s, more than a third of U.S. states allow the police to haul people in who don’t pay all manner of debts, from bills for health care services to credit card and auto loans. Under the law, debtors aren’t arrested for nonpayment, but rather for failing to respond to court hearings, pay legal fines, or otherwise showing “contempt of court” in connection with a creditor lawsuit. Some states also apply “poverty penalties,” including late fees, payment plan fees, and interest when people are unable to pay all their debts at once. Alabama charges a 30 percent collection fee, for instance, while Florida allows private debt collectors to add a 40 percent surcharge on the original debt. Some Florida counties also use so-called collection courts, where debtors can be jailed but have no right to a public defender.
When did we start letting this happen to people? There must be a better way. This was abolished for a good reason. As I say, “There’s always an option!” Watch the video and you’ll see how I feel about this Yahoo Finance article. http://finance.yahoo.com/news/jailed-for–280–the-return-of-debtors–prisons.html