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.

Hospice of the Western Reserve

Akron Children's Hospital


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

Three exonerated of murder convictions from 18 years ago
Thanks heavens that none of them have been condemned to death. This alons should convince the USA to join the civilized world by abolishing the death penalty. E...

Kombucha: a sweet business brewed with fermented tea
Stevia is not an artificial sweetener. It is a plant. I have one growing in my sunroom. The leaves are dried and added to teas. It's harvested commercially and...

Bringing back ballet in Cleveland
I do think Ballet in Cleveland is doing good things, but the fact that director says "When we have flourishing companies like the New York City Ballet and the A...

Report confirms some Vietnam veterans may have been exposed to Agent Orange
was in nam 1969 exposed va stated lost medical records was in lawsuit from 197? till settled 0 $ 2010 ? said all nam vets will get back disability till 198? jus...

Mentorship grant program redefines "faith-based" provision
Can't anyone have values, beliefs, and morals anymore? How is it anymore unconstitutional for a school partner with a "faith-based" organization than any other ...

Exploradio: The challenge of finding a healthy balance with technology
Thank you, Jeff, for another well done Exploradio. I always learn something interesting about what is happening in NE Ohio.

Northeast Ohio's transgender community rallies around restroom issue
A good first step would be for Cleveland to require restaurants to have a public restroom. Cleveland is the only city I've ever been in where restaurants somet...

Vapor shops say tobacco tax hikes could hit them hard
Maybe you should be DOING a study, since every time you've tried to villianize them all that's happened was the opposite. I'm not a fan of alcohol that's flavor...

New law gives access to birth records to Ohio adoptees
Can siblings also look for their missing brother or sister? And how do we go about it?

Ida McKinley's tiara comes home, with the help of "Pawn Stars"
I donated to the fund to keep the tiara at the museum where I believe it belongs. I took my 16 year old granddaughter to the showing I dont think it will be som...

Copyright © 2015 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