News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

The Holden Arboretum

Cedar Point


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


Ohio receives failing grades in debt collections report
The Columbus Dispatch says the report criticizes the lack of a living wage.
Story by LAUREN SCHMOLL AND AKILAH PORTER


 
National Consumer Law Center (NCLC) is a nonprofit organization that fights "for consumer justice and economic security for low-income and other disadvantaged people, including older adults, in the U.S."
Courtesy of National Consumer Law Center
Download (WKSU Only)
In The Region:

Ohio is coming under fire from the National Consumer Law Center for policies that allow debt-collectors and creditors to push Ohioans into poverty when they default on debt. 

The state got two "F" grades in the study. One was for protecting only the federal minimum of 75 percent of wages from garnishments to pay debts. The state also got a failing grade for protecting less than $450 in a bank account from seizure. 

Ohio got a "D" for its policy that allows vehicles valued at more than $3,450 to be repossessed. 

Mark Schiffman is a spokesman for Minneapolis-based debt collection agency ACA International. He says debt collectors are not the enemy of consumers— they are just doing their jobs.

Hear Schiffman's opinion on debt collectors

Other options:
Windows Media / MP3 Download (0:14)


“All we ask is that these laws and regulations around consumer debt collection are fair and balanced,” Schiffman said. “They have to be able to protect consumers, but they also have to be able to allow the collection of rightfully owed debt.”

 Ohio does protect $125,000 in home equity after a change in state law in March. Because of that, the state received a "B" in that category. 

Ohio’s overall score on the report was a “C,” along with 23 other states.

The Consumer Law Center wants Ohio and other states to do more to protect families' ability to meet their basic needs when faced with debt.

Under current policies, a minimum-wage worker would have to live on $235 a week after wages are garnished.

Linda Cook is the senior staff attorney at the Ohio Poverty Law Center in Columbus. She says Ohio needs to update its collection laws to fit the reality of the economy.

Cook on what the state should do
Other options:
Windows Media / MP3 Download
(0:23)

“Ohio needs to recognize that during these economic times— given the continued, high unemployment rate and the under employment rate and the fact that most new jobs are being created at lower wage levels— we need to be more realistic about the expectations we place on people for being self-sufficient,” Cook said.

The report suggests states, including Ohio, increase the share of someone’s wages that are protected from garnishment. It also wants states to change limits on vehicle values and bank accounts.

And debt collectors would be prohibited from seizing necessary household goods. Advocates say that without vehicles to get to work, debtors actually become less likely to repay.

The National Consumer Law Center is a nonprofit advocacy group. 

Listener Comments:

Strategic Defaulters in non real estate defaults are treated better than Involuntary Defaulters by the courts. Until this is fixed, things will only get worse.

Until Involuntary Default pleadings are accepted by the courts so judges can move to freeze all future interest rate charges, penalties and fees on a default, things will only get worse.

Likes Debt Suspension Rights on facebook, it's free.


Posted by: Debt Suspension Rights for Consumers, where are they? (California) on November 3, 2013 5:11AM
Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook



Stories with Recent Comments

Cleveland Orchestra heads home from Europe
So proud to be a lifetime Clevelander! Yes, our Orchestra is the best ambassador a city could hope for! My wife and I happened to hear the European Festival T...

Northeast Ohio undocumented immigrants praying for a miracle
Stop it, just stop it. They are not undocumented but illegal aliens. I live in a 'sanctuary' city and it's not pretty. Dahlberg is a notorious trouble maker in ...

Ohio survey shows low-income people are choosing phones over food
Where is this study published? no sign of it on google scholar. is there a cite

The Akron Sound rocks the porches
fabulous group interview! you covered so much in so little time. wish i could be there for porch rockr.

Head of Ohio Dems says Kasich administration is lying about Suarez contacts
when Kasich's mouth is open , he's lying. Look what he did at Lehmans brothers and then lied about it all during the campaign. If a GOP didn't lie, he or she ...

Canton's Basilica of St. John absorbs news of the pope at morning Mass
Hello Chris,Marina,and Patrice, I just read this article and you all look great. I'm on facebook Jean Dutcher in blue and white stripped blouse. I"M so glad to ...

Exploradio: Avoiding the 'acting-white' trap
Growing-up black and being black should not determine that you will not speak well or will not be a high achiever in your goals in life.But society te nds to la...

Charter-school supporters to rally at Statehouse
I am on the bus now headed to the rally. Horizon is an excellent school. My son is is 7 th grade. The teachers and administrators are top notch and spend so m...

Former Nursing Home Land Added to Parks
In addition, LED technology also plays a very important role in advertising- LED placard is very, very useful for shop owners.

Ohio Supreme Court hears arguments on school funding
That's not true. Other school districts HAVE followed this law and done this. Oakhills is one of them and how they were able to provide technology for their s...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University