* Gov. Pat Quinn signed a bill to protect debtors yesterday…
The governor, who signed the legislation at an event in Chicago, said debt collectors have become so aggressive in some parts of Illinois that they commonly use taxpayer-financed courts, sheriff’s deputies and county jails to squeeze poor people who fall behind on small payments.
The law will make it harder to jail people who miss court dates or are found in contempt of court as they struggle with unpaid debts – a practice that got worse, some say, during the recession.
* Attorney General Lisa Madigan pushed for the bill and issued a press release applauding the signature…
The attorney general sought the measure after learning that residents in roughly a third of Illinois’ counties commonly face incarceration when they fail to appear in court over a previously entered judgment to pay a debt. In many of these cases, notices of court hearings were mailed to addresses that were no longer valid, leaving many debtors unaware of the hearings. In spite of the failure to notify the debtors, courts have frequently issued warrants for their arrests.
Compounding the problem, according to the attorney general’s office, is that many victims of these practices are living solely on income that is legally protected from being used to pay outstanding judgment debts, including Social Security, unemployment insurance or veterans’ benefits.
“It is outrageous to think in this day and age that creditors are manipulating the courts, even threatening jail time, to extract whatever they could from people who could least afford to pay — veterans, the unemployed, seniors who rely solely on their benefits to get by each month,” Madigan said. “This law corrects that gross oversight and puts a stop to throwing people in jail for being poor while still allowing fair debt collection when people have the means to pay their debts.”
The new law becomes effective immediately and was sponsored by State Rep. Ann Williams, D-Chicago, and State Sen. William Haine, R-Alton. It also bans abusive and burdensome “pay or appear” orders that are routinely entered against debtors in some Illinois counties. These orders — which usually remain in effect for three years — require debtors to make a monthly payment or appear in court each month to explain why they are unable to pay, even if their financial circumstances have not improved. That means, if a debtor misses just one payment and court hearing, they can end up in jail. Debtors who have been victims of this practice typically owe outstanding medical bills, credit card debts or payday loans.
According to court documents obtained by Madigan’s office, one Illinois court entered a “pay or appear” order against a mentally disabled man living on legally protected disability benefits that provided him with $690 a month. Even though the man informed the court of his circumstances, he was still ordered to either pay $100 a month or appear in court once a month for a three-year period.
By amending the Code of Civil Procedure, the new law codifies and clarifies practices followed by attorneys, creditors and courts across Illinois to ensure courts make a finding of a consumer’s ability to pay before entering a payment order, and it prohibits payment orders that rely on legally protected income and prevents arrest warrants from being issued unless the debtor was personally served with a hearing notice.
* Meanwhile, the Illinois Federation of Public Employees represents 250 paralegal and clerical employees at the Illinois Attorney General’s Office voted overwhelmingly (88 percent) to authorize a strike if negotiations that have last a year aren’t wrapped up soon…
Union officials declined to disclose specifics but said they are asking for a “modest” one-time stipend in lieu of a percentage salary increase. The group says it understands the state’s financial squeeze but contends that Madigan’s office received a budget increase this year that could “easily” cover the cost of the stipend.
Madigan spokeswoman Natalie Bauer argues that the budget bump was minuscule — an additional $1.15 million for a total of $32.6 million in general funds — and is required to be spent on worker retirement costs and health insurance. Union members counter that Madigan’s office has raised hundreds of millions of dollars for the state this year through settlements with mortgage and pharmaceutical companies that could be used to cover an increase in employee pay.
Since Madigan has been in negotiations, she could’ve tried to muscle through an appropriation for a “modest stipend” for these low-level workers. They have a point.
However, unlike New York, the Illinois AG doesn’t get to keep any of the money she makes via lawsuits for her own budget. That criticism leveled by the union might look good on paper, but it doesn’t represent reality.
- wordslinger - Thursday, Jul 26, 12 @ 11:26 am:
There’s some good legislation passed by the GA. I was appalled to learn that imprisonment for debt was even possible in 2012.
I was even more amazed that elected judges and sheriffs would even participate in such actions.
- Cheryl - Thursday, Jul 26, 12 @ 12:21 pm:
I’m with wordslinger–I didn’t even know we still have debtors’ prison.
- John Galt - Thursday, Jul 26, 12 @ 12:27 pm:
===
However, unlike New York, the Illinois AG doesn’t get to keep any of the money she makes via lawsuits for her own budget. That criticism leveled by the union might look good on paper, but it doesn’t represent reality.
===
Not to mention the folly of supporting increased costs in perpetuity with isolated one-time payments. It happened with the 2009 Stimulus at the federal level–where grants lasting only 2-3 years were used to permanently boost salaries.
Then when the extra income evaporates, everybody cries poverty even though everybody knew the money was only temporary.
- I'M ON MY LUNCH BREAK! - Thursday, Jul 26, 12 @ 12:29 pm:
It should be noted that the attorneys themselves who work for Lisa Madigan haven’t gotten a pay increase in 5 years. They are some of the most overworked and underpaid State employees. The AG’s office has great difficulty keeping attorneys in these positions, and these are positions where we really need experienced attorneys. In light of this, I don’t have much sympathy for the paralegals and clerical staff who have gotten multiple increases in the last five years and who cannot be required to work overtime without compensation (as the attorneys routinely do).
- Anonymous - Thursday, Jul 26, 12 @ 12:37 pm:
“Debtors’ prisons” never should have happened in the first place.
Constitution of the State of Illinois, Article I, Section 14: “IMPRISONMENT FOR DEBT. No person shall be imprisoned for debt unless he refuses
to deliver up his estate for the benefit of his creditors as provided by law or unless there is a strong presumption of fraud. …”
- Grimace - Thursday, Jul 26, 12 @ 12:41 pm:
I really envy the simplicity of the AG’s job:
1. Find some undesirable organization
2. Beat on them in the name of the people
- I'M ON MY LUNCH BREAK! - Thursday, Jul 26, 12 @ 12:43 pm:
To be fair, no one is being put in prison for the debt. They are being imprisoned for contempt of court for not appearing as ordered. I don’t think this law prohibits this, just limits it.
- Anon - Thursday, Jul 26, 12 @ 12:49 pm:
I’m curious about actually how “modest” the union’s stipend really was. Also, how much do these “low-level” workers make now? Is anything like at state agencies where subordinates make more than some of their supervisors?
- Yellow Dog Democrat - Thursday, Jul 26, 12 @ 12:53 pm:
Dear Rock River Times:
Bill Haine is one of ours.
- Yellow Dog Democrat
- Accountability? - Thursday, Jul 26, 12 @ 2:16 pm:
-In many of these cases, notices of court hearings were mailed to addresses that were no longer valid, leaving many debtors unaware of the hearings. In spite of the failure to notify the debtors, courts have frequently issued warrants for their arrests.-
This could be prevented if debtors acted responsibly by notifying all of their creditors of their change in address, just as one does when moving with their bank accounts, driver’s license, insurances, etc. So now some of the folks who don’t have the sense to be responsible are getting protected?
- wordslinger - Thursday, Jul 26, 12 @ 2:31 pm:
–I really envy the simplicity of the AG’s job:
1. Find some undesirable organization
2. Beat on them in the name of the people–
You make that sound like a bad thing. Should the AG be supporting and protecting “undesirable organizations?”
- mokenavince - Thursday, Jul 26, 12 @ 2:34 pm:
Public unions should not have the right to strike.
Franklin Roosvelt warned us about collective bargining with public employees.Looks as though it message never made it to Illinois.
- wow - Thursday, Jul 26, 12 @ 2:37 pm:
just was looking at the salaries for the AG in the public database. looks like the attorneys are only paid in low 50’s, but the paralegals and staff are paid much higher (in 60’s). and, if it’s true that the attorneys do not get paid overtime, but routinely work over 40 hours, i’m sure there is some tension in that office today as the clerical staff strikes, while asking for more benefits, as the attorneys inside work for less money, more hours, and no raises in five years. i might stop by just to observe haha.
- lincolnlover - Thursday, Jul 26, 12 @ 2:50 pm:
wow - Are you looking at individual salaries or are you looking at paygrades?
- champaigndweller - Thursday, Jul 26, 12 @ 2:54 pm:
People aren’t jailed for failing to pay–I know that makes for good political theater, but that simply isn’t true. We haven’t brought back the debtors’ prison. People are jailed for failing to appear in court when they are ordered to do so. Debtors are told that if they move, it’s their obligation to notify the court of an address change, which many of them fail to do.
- wow - Thursday, Jul 26, 12 @ 3:33 pm:
individual salaries
- Name Withheld - Thursday, Jul 26, 12 @ 3:34 pm:
In fairness to those OAG salaries - a large number of the rank-and-file have been there for many years (10+). And if you look at the number of employees the AG’s office has, it’s pretty understaffed for all of the irons they have in the fire.
- chefjeff - Thursday, Jul 26, 12 @ 3:47 pm:
I received a judgement for $1800 along with a payment order for $10 month (fifteen years). This debtor has defied the court ordered payment, what should or could the court do to enforce their order?
- park - Thursday, Jul 26, 12 @ 6:37 pm:
The AG’s office has historically paid the lowest salary of any government attorney’s office in the State (possible exception a few very rural county assistant state’s attorneys). none of the last 3 AG’s have really cared about this. And they have all fought unionization of the attorneys tooth and nail. LM did that just last year, and her dad has a bill in the GA right now that will effectively prohibit unionizing the attorneys. That’s why they get paid so poorly.
Going after the staff won’t solve that problem. the AG’s office remains a really good place to get a few years legal experience but a really poor career choice. just the way it is.
- Ohhowlittleuknow - Friday, Jul 27, 12 @ 7:25 am:
Wow, I wonder who’s salaries your looking at because there are union and non Union workers on that list and non union staff are paid much higher wages than union. !!!!!!!
- wow - Thursday, Aug 2, 12 @ 12:47 pm:
Ohhowlittleuknow- it’s assumed the attorneys should be paid more- they’re more educated and perform higher level work than someone without a doctorate degree. and, relative to their industry, they are also paid very little. compared to staff, who, without a law degree, are paid equal to or more than the attorneys. i am looking at the paralegals, secretaries, and attorneys. the database does not specifiy which staff are and are not unionized. i assume all of them are. if there is non-union staff, and they are indeed paid lower, i’d be interested to know their tenure and their educational background.