Debt Collection—The Next Political Frontier
The Boston Globe series on the dark underbelly of debt was terrific, jounralism at its best and most effective. Now the question is whether their expose will be a tsk-tsk moment, and then everyone will forget. Or will others seize on this moment and make it the impetus for real change?
This morning the Globe gave a first, hopeful answer. Carol Kenner, former Chief Judge of the Bankruptcy Court of Massachusetts, published an op-ed laying out five sensible changes that could go a long way toward ending the worst abuses demonstrated by the Globe series.
These changes aren’t radical or bizarre. They are thoughtful, solid suggestions to restore some balance to the debtor-creditor system. They are the sorts of changes that can reasonably be accomplished. And the recent Oregon experience on payday lenders is a reminder that it is possible to make changes. The polling in Oregon showed that people of all political stripes care about these issues, and local groups can have a lot of influence.
Judge Kenner’s ideas are good. But what is even better is that she has taken an important step to keep the issues raised in the Globe series alive. Only if the pressure stays on everyone—the legislature, the regulators, the judges, the debt collectors—will there be any real chance of moving from tsk-tsk to real change.
Again, I'm surprised that there's so little attention paid to this issue.
August 14, 2006 4:05 PM | Reply | Permalink
In today's (Monday Aug 21st) NYT, Paul Krugman takes Bush to task for letting private debt collectors do the I.R.S.'s work. The worst part is these private debt collectors get to keep a percentage of what they collect.
I have a premonition that the Globe's horror stories will be visited on the rest of the nation. And we may see more identity theft because of the release of this personal information to non-governmental people.
August 21, 2006 7:42 AM | Reply | Permalink
It is a real public service for the Globe to focus on issues, like debt collection, that affect the fat part of the economic bell curve (i.e. The working poor and the middle class). I hate to think about the shape the middle class would be in if it weren't for efforts like theirs (and yours, Prof. Warren).
It is just crazy to hold old people's cars hostage for repayment of debt when they are on a fixed income.
August 22, 2006 1:34 PM | Reply | Permalink
I almost wonder if privatization is a political move to make money and diffuse the risk of accountability in the case of system abuse. If a politician abuses some system to make money directly, you can be sure they'll get found out and lose office. But if they privatize then they can sign their frineds on to big contracts with an greement for a kickback, the friends can abuse the system - and if found out - then they just lose their contract. I mean, isn't that what we're seeing with the privatization of defense-related gov't work? How many billions have been wasted and how many people have lost contacts, been thrown in jail, or lost office? Many of those involved in the waste (at tax payer expense) have gotten off free and clear - and with huge profits in their pockets.
August 24, 2006 6:08 AM | Reply | Permalink
Debt Collect and the Boston Globe Article
I must say that the article published was a little (modest term) prejudice and unfair to Constables within Massachusetts. I run a full service Constable office and I also completed seizure executions. Not the volume that those others were but 20-50 per month.
I think we have lost sight of what this is really about. Why do liberal Americans feel it is now OK for people to walk away from financial responsibilities? Why can an individual apply for a credit card or purchase product on credit and then decide they will not pay the bill? Now I can understand that everyone, myself included, can run into hardships. I can respect a person needing to file bankruptcy if need be, once, not 3-4 times in a life-time. But when some of the people I have seized upon have 3-4 vehicles registered in their name, after-market rims and stereos installed, and well dressed or live in a nice home then why should I feel sorry for them? They are making a concious decision of what and what not they want to pay for.
These people at some point made a concious decision that they would walk away from the debt, not file bankruptcy, not communicate to all the letters and phone calls from the original creditor, nor the slew of phone calls and letters from collections agencies that first took over the debt and then the final debt owner of the debts attempts to contact.
I can recall only 3 instances of all the auto's I seized that addresses were questionable in terms that the defendant was duly notified. But lets also remember that a majority of these clients are not readily updating address and contact information on purpose. For the other items seized I had matching address in the DMV to paperwork provided from the current creditor.
There are many Constables in Massachusetts that perform these duties with honor and professionalism. Those of use that have sought training and paid for personally. Those of us that have opened offices and handle as a business, properly uniformed, licensed bonded and insured.
I have invested many hours and work to position my campany in positive light and performance. To have a reporter lump us all in together for sensationalism was unprofessional on his part and very unethical. Aside from an attorney under the employ of the Boston Globe having personally had his automobile seized I am sure there was a more honest and true reason for the articles origin.
I will agree that there needs to be improved regulation for the Constable appointment and I would welcome state mandated training and support. Lets not detract from the original need and position of the Constable for Boston. Lets not loose sight that we are talking about individuals, for the majority, that decided they did not need to be responsible for there actions and debts. They made the decision to apply to credit card solicitations. They opted to max out the card then have no means to repay. From my experience these are people that have the means to make the payment just not the desire. That desire is brought to the forefront when their vehicle or asset is seized and they now are forced to make ammends. 85% of these people pick up within 24hrs. Funny how they have the means when they are forced but opt to ignore otherwise. Perhaps if they opted for the least expensinve cable subscription, didn't need to have that nice stereo and managed their fincance like adults they would not be in the position they are in.
Thank you for the opportunity,
Boston Constable
September 15, 2006 7:41 PM | Reply | Permalink