The American Civil Liberties Union of Washington has filed a class-action lawsuit against Pierce County, Washington, accusing it of violating the constitutional rights of individuals by using private collection agencies to recover unpaid court debts.
The suit, filed in Washington state court, was filed on behalf of a 56-year-old man who was in jail when his account for an unpaid debt owed to the court was placed with a collection agency. The county allegedly failed to inform the plaintiff of his right to request an ability-to-pay hearing, failed to inquire about his ability to pay, failed to inform him that additional fees would be imposed if the debt was not paid, and failed to tell him the debt could be reduced or waived if he was unable to pay. An $800 debt has since increased to more than $2,000 that is owed by the plaintiff.
The type of debt in question, known as legal financial obligations (LFOs) are court-ordered fees and fines and other expenses that are assessed to individuals as part of their sentencing. If the debt is not paid, the account is referred to a private collection agency, which adds its fee of between 18% and 23% of the unpaid balance.
Battling against the “unholy” partnership between the accounts receivable management industry and the legal system has been something the ACLU has been doing for years. Back in 2018, it issued a report that criticized the practice of jailing individuals and issuing arrest warrants for unpaid debts, a report that was rebuked by ACA International and the National Creditors Bar Association. The ACLU has also taken up other cases, such as this one in New Hampshire, where an individual was put in jail for not paying a court-ordered fine.
In this most recent lawsuit, the ACLU is seeking to prohibit Pierce County from sending such accounts to a collection agency without first determining whether the individual has the ability to repay a debt.
