6 Stories

Biloxi Running 'Debtors Prison From the Dark Ages': ACLU

Class-action lawsuit says Miss. city is shaking down poverty-stricken residents

(Newser) - Debtors prisons are supposedly a thing of the distant past —except in Biloxi, Miss. That's according to a class-action lawsuit filed against the city, its police department, the courts, and a private probation company, alleging these agencies have conspired to threaten poor residents into paying up to avoid... More »

Lawsuit: New Orleans Runs Modern 'Debtors' Prison'

System targeting poor is 'illegal, unconstitutional, and unjust': complaint

(Newser) - Six plaintiffs filed a federal class-action lawsuit yesterday against Louisiana's Orleans Parish for instituting what amounts to an "illegal, unconstitutional, and unjust modern debtors' prison" for people who fail to pay court fines over what are often minor offenses, the New Orleans Advocate reports. The complaint alleges individuals... More »

Owe Student Loans? Your Social Security Might Be Cut

Feds taking up to 15% of some retirees' checks

(Newser) - If you're retired and owe student loans, your Social Security benefits might not be as big as you thought. More and more retirees who are in student loan default are seeing a chunk of their monthly Social Security checks being grabbed by the federal government. Since January, the feds... More »

Debtor’s Prison Makes Its Ugly Return

Government 'shakes down' citizens for collectors

(Newser) - Strongly worded letters and menacing phone calls aren't enough, it seems, to whip America's debtors into shape. Instead, the country's collection industry is turning to civil courts, using taxpayer money and government resources to pursue "low level deadbeats," finds Reason . The process pits debtors against a system that... More »

Another BofA Debtor Revolts, Threatens to Sue

Why'd you cut my limit while paying out bonuses, he wonders

(Newser) - A California lawyer inspired by the rumblings of debtor revolt last year informed Bank of America he won't be making his credit card payments until the bank lowers his rate—and if they try any funny business, he’ll sue. Ben Pavone requested that his limit be raised in October.... More »

BofA Cardholder Rips 'Thieving Bastards'

Foe of 'usury and plunder' won't pay 'til CEO watches video

(Newser) - A California woman who says she kept paying her credit card bill even after she lost her job has had enough: She's pledging not to pay down her Bank of America account until the creditor lowers her interest rate, the Huffington Post reports.. It’s “the proverbial first... More »

6 Stories