(Source: By Linda N. Weller The Telegraph, Alton, Ill.) - State officials seeking ways to make debt-collecting more fair heard a woman testify Monday that her unpaid medical bills landed her in jail for four days.
“The police had a warrant for my arrest, I knew nothing about it,” said Robin Ebersohl, 51, of Livingston. “I didn’t know I had a court date. I was very aggravated with the situation. I missed one day of work. It was embarrassing. People getting off work driving by saw me in handcuffs.”
Police in Montgomery County pulled Ebersohl’s vehicle over because her muffler was loud, discovering the warrant for failure to appear in court from Macoupin County. She said she had to stay in jail until her father received his pension check and came up with the $530 needed to bail her out in November 2007.
Ebersohl had been dealing with Credit Bureau of Macoupin County, a collection agency trying to recoup money she owed Community Memorial Hospital in Staunton and Staunton Family Practice. She said she last worked with the collectors in May 2007 and never received notice of a court date.
Ebersohl said she had cancer surgery in 2002, then was diagnosed with diabetes, which caused her to lose her job as a truck driver. She went to work for Walmart a year later but had to quit because of knee problems.
“It would be nice if something can be done,” she said. “There are instances when people lose their income or their income is reduced. People shouldn’t have to go to jail.”
The panel included state Sen. William Haine, D-Alton; Brent Adams, secretary; Emanuel Flores, director of banking; Roxanne Nava, director of financial institutions; and Jay Stewart, director of professional regulation – all from the Illinois Department of Financial and Professional Regulation.
The officials were trying to discover areas that result in what they said are abuses of the judicial system, so it cannot be used as an arm of some collection agencies.
“It is a problem that emanates from our courts,” Haine said. “The essence of free enterprise is the inviolability and enforceability of contracts. There should be fair play for debtors and creditors. You do not scoop people up in civil matters and then throw them in jail with criminals. This system is fraught with random orders, then clothed with contempt powers. Let’s rein this process in.”
The 90-minute hearing in Alton City Council Chambers, 101 E. Third St., was the first of two information-gathering sessions that may lead to legislation intended to fix problems in the state’s legal system related to debt collection. A department spokeswoman previously said the issues only have arisen in the southern part of the state; the second of two such sessions will be held Wednesday in Marion.
On the collection side, attorney William Asa, of Taliana, Buckley and Asa in Edwardsville, said a problem is getting debtors to show up for court in the preliminary stage to even establish whether they have means to pay their debts.
“I see this as an issue with the courts, not so much with creditors,” Asa said. “Judges have the power to hold them in contempt. It doesn’t help me collect a debt if they are in jail or lose their jobs. The court probably needs those powers as a last resort. If we can’t enforce contracts or use the laws, what have we become? Banks and creditors don’t want people to go to jail; they want people to come to court and participate in the process.”
What several people agreed on was that in some cases, courts mailed notices by regular mail when they should be served in person. Attorney Beverly Yang, of Land of Lincoln Legal Assistance Foundation Inc. of Alton, said sometimes debtors have moved or otherwise never get the notices. Yang said Land of Lincoln attorneys have identified “several disturbing trends in debt collection.”
In written testimony, Yang said a court sent one client notices for two “pay or appear” hearings, neither of which she received. The first time, the client was found in contempt, jailed for three days and paid $500 bail, which went to the creditor. The second time, the woman had moved and ended up having a bench warrant issued against her.
She paid the plaintiff $400. Twice later, “the creditor wrote a letter to the court, and without setting the case for hearing on the debtor’s ability to pay, a bench warrant was issued and bond set at $750,” Yang wrote.
Yang suggested all citations be served personally; the citation to discover assets procedure should be explained in plain language, including exemptions and consequences of failing to appear; and debtors should not keep being called back to court to answer whether they can pay or why they missed a payment, even though there is no change in their financial situation; and appearance bonds should be returned to the debtor, not given to the creditor, once he or she appears in court.
Yang said in Madison County, from April through December 2011, 65 bench warrants were issued for debt collection.
Kristine E. Gamm-Smith, a credit counselor at Chestnut Health Systems in Granite City, agreed there is confusion among debtors, especially if they are not educated.
“People don’t want to be in contempt of court. They don’t understand and are intimidated,” she said. “I want to point out there is a difference between primary creditors and secondary creditors who buy debts for pennies on the dollar. Their sole job is to go after these people.”
The officials said people can contact their legislators or the IDFPR with their concerns.
“The status quo is not the answer,” Stewart said.
“Us doing nothing is unacceptable,” Nava said, referring to Gov. Pat Quinn’s interest in consumer issues. “Ultimately, we want to solve this problem. One person sitting in jail, one person not earning money is unacceptable.”
Anyone wanting to contact the department can write to: 320 West Washington St., Springfield IL 62786; or call (217) 785-0820 or (888) 4REGUL8 (473-4858).
©2012 The Telegraph (Alton, Ill.)
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