Lawmaker hears of citizen’s unjust plight, convinces colleagues to join his work on her behalf
OLYMPIA – Not too long ago, a northeastern Washington mother named Janelle Leslie spent a night in jail because of a bill she didn’t know she owed. That’s right: The woman was locked up basically on account of a debt she didn’t even know was out there hanging against her.
When state Rep. Derek Stanford got wind of Leslie’s situation, he went to work on legislation to prevent such an injustice from knocking on anyone else’s door. The result of Stanford’s work was House Bill 1864, a measure that has won full legislative support and is headed for the governor’s desk.
Here’s how the nightmare hit Leslie:
Five years ago her son had an MRI that she thought had been covered by their insurance. But it wasn’t. The medical bill, unbeknownst to her, went to a collection agency. Worst of all, she didn’t receive reasonable notification about the debt and had no idea that the company had taken her to court. She certainly didn’t know there was a warrant out for her arrest!
It wasn’t until a few weeks after Leslie’s ordeal behind bars that she finally found out, in a court hearing, the whole story.
“After reading Janelle’s story in the newspapers,” said Stanford, “I did some research and found major problems in the way a few collection agencies go about their business. It was obvious to me that the existing law needed some changes.
“Debtors have a right to more information about their debts, and about their rights and responsibilities so they can make good decisions and keep away from trouble.”
It’s true that our federal and state constitutions do each prohibit people from going to jail for a debt. But the thing is, you can get carted off to jail for missing a court appearance.
Indeed, Leslie spent a night locked up because she didn’t show up in court to deal with an unpaid hospital bill that she didn’t know she owed to begin with.
“Going to jail for this made me feel completely helpless because I didn’t know what I was going to jail for,” said Leslie about her experience. “It was so demeaning and sad because I felt so clueless, but more so because I was arrested in front of my daughter. I saw the fear and hurt in my daughter’s eyes.”
“You might not even know about a debt, and suddenly you can end up in jail because of a legal loophole – a loophole that’s being abused by some debt collectors,” said Stanford. “And sometimes collectors use court powers to go after protected assets like Social Security and child support by having bail money forfeited directly to the collector. This is an abuse of our already-overburdened court system, and it needs to stop.”
Stanford continued that “if I received a letter saying I owed money to someone and I didn’t recognize who it came from, I would probably think it was junk mail or some kind of a scam.”
The Bothell lawmaker explained that one of the main problems is that debtors often don’t know about the debt because collectors currently aren’t required to inform them of the name of the original creditor or the last time a payment was made on the debt. Under Stanford’s bill, a collector would have to cease collection if they are unable to provide this information.
Stanford further explained that his legislation “makes debt notices clearer and more informative. This new state standard will make it less likely that a debtor will miss a court appearance in the first place, and courts will stop handing over bail money directly to collectors. Jail is for serious criminals, not innocent citizens who have fallen on hard times.”
The legislation was originally based on recommendations made by the Federal Trade Commission last year. Stanford said that he has spent months negotiating with and gaining the support of debt collectors, consumer advocates, legislators, and the State Bar Association and that “the bill has been narrowed so that its provisions are practical and can be implemented. With so many people facing tough financial situations right now, it is very important that we put these protections into place immediately.”
Stanford is a member of the House Business & Financial Services Committee in which the legislation was originally considered several weeks ago.