How’s this for debt escalation? The Star
Tribune reported recently on a
student who saw a $180 college textbook balloon to $4,800 thanks to a few years of unpaid late fees (the student mistakenly thought the books were covered by her financial aid).
Unfortunately, there was no room for mistakes when a collections agency swooped in and siphoned a cool $200
straight from her bank account. And under state law, the debt collector’s actions were 100 percent legal. Really?!?
According to the newspaper, Minnesota is one of the only states were debt
collectors may file lawsuits and garnish debtor bank accounts without first
making a court appearance. Attorney General Lori Swanson says such laws "stack
the deck against consumers."
Here’s to hoping the legislature responds with a
clean shuffle.
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