To Address Race Gap, Missouri AG Pushes Debt Collection Fixes


Missouri’s attorney general proposed reforms to the state court rules to address the prevalence of debt collection suits in black neighborhoods.
News Story (Missouri)

Paul Kiel
ProPublica
December 3, 2015
READ THE FULL STORY HERE

Tags: Consumer Protection, Debt Collection

Organizations mentioned/involved: Legal Services of Eastern Missouri (LSEM)


DETAILS

Missouri Attorney General Chris Koster today proposed a series of changes to state court rules to curb what he called “abusive“ collection lawsuits that saddle debtors with illegitimate debts.

The changes address many of the issues raised in an investigation by ProPublica in October that found such lawsuits were far more prevalent in mostly black neighborhoods than mostly white ones. With court judgments in hand, collectors can seize up to a quarter of debtors’ take-home pay.