- Chicago hiked the cost of vehicle city sticker violations to boost revenue. But it’s driven more low-income, black motorists into debt., By Melissa Sanchez and Elliott Ramos, July 26, 2018, ProPublica Illinois: “During negotiations for Chicago’s 2012 budget, newly elected Mayor Rahm Emanuel and then-City Clerk Susana Mendoza agreed to hike the price of what was already one of the priciest tickets vehicle owners can get in the city. Citations for not having a required vehicle sticker rose from $120 to $200. The increase, approved unanimously by the City Council, was pitched by Mendoza as an alternative to raising the price of stickers as well as generating much-needed revenue from ‘scofflaws…'”
- IRS outsources debt collection to private firms, and the poor feel the sting, watchdog charges, By Jeff Stein, July 23, 2018, Washington Post: “Private tax collectors acting on the Internal Revenue Service’s behalf have collected tax payments from more than 5,000 poor people in the past year, payments that an in-house IRS watchdog says should have been avoided. Nina E. Olson, head of the Office of the Taxpayer Advocate, says a private debt collections program is not doing enough to spare people struggling to pay for food and shelter from additional drains on their income. She has also urged the IRS to stop referring to the private companies cases of individuals whose incomes put them below 250 percent of the poverty line…”
Tag: Bankruptcy
Debt Collection and the Poor
- Debtors’ prison: ACLU report details ‘criminalization of private debt’, By Jon Schuppe, February 21, 2018, NBC News: “Americans’ reliance on household debt ─ and poor people’s struggles to pay it off ─ has fueled a collection industry that forces many of them into jail, a practice that critics call a misuse of the criminal justice system…”
- How Chicago ticket debt sends black motorists into bankruptcy, By Melissa Sanchez and Sandhya Kambhampati, February 27, 2018, ProPublica: “By last summer, Laqueanda Reneau felt like she had finally gotten her life on track. A single mother who had gotten pregnant in high school, she supported her family with a series of jobs at coffee shops, restaurants and clothing stores until she landed a position she loved as a community organizer on Chicago’s West Side. At the same time, she was working her way toward a degree in public health at DePaul University. But one large barrier stood in her way: $6,700 in unpaid tickets, late fines and impound fees…”
Foreclosures and Tax Sales – Detroit
Detroit needs residents, but sends some packing: By Monica Davey, June 26, 2014, New York Times: “Ronald Ford Jr. has watched neighbors move away and brick houses on his family’s block crumble to nothing, but he says he wants to stay put and give a chance to city leaders who now promise a renaissance. ‘I’d like to try to go with the new Detroit if that’s really coming,’ Mr. Ford, 49, said, standing outside the house on the city’s east side that he describes as precious, ‘like a family heirloom.’ Yet as Mike Duggan, the mayor of the nation’s largest bankrupt city, pledges to stem the flood of departures that have crippled Detroit and to begin increasing the city’s population for the first time in decades, Mr. Ford is on the verge of losing his family’s house. So are tens of thousands of others here who failed to pay their property taxes. In a city that desperately needs to hold onto residents, there is a virtual pipeline out. At least 70,000 foreclosures have taken place since 2009 because of delinquent property taxes. . .”