Should Debt Collection be Halted During a Health Crisis?

These strange times have raised many questions, but none as interesting as personal debt collection. “Debt collection should be halted during the coronavirus crisis,” the Los Angeles City Council urged in a proposal that passed unanimously this week.

The proposal, introduced by Councilwoman Monica Rodriguez, does not take any immediate action to halt the practice but calls on Mayor Eric Garcetti to impose a moratorium on debt collection. It also asks the mayor to declare collection and credit agencies to be nonessential businesses during the emergency order spurred by the pandemic.

Rodriguez billed the suggested move as a way “to further protect Angelenos who have lost their jobs and had their businesses closed.” Her plan passed without discussion Wednesday.

The push was applauded by groups such as the Western Center on Law and Poverty and the California Low-Income Consumer Coalition, which assert that California has not gone far enough to ease debt collection during the emergency. California’s Franchise Tax Board is also holding off on garnishing wages and imposing bank levies and liens on residents who have unpaid taxes and other government debt until the middle of July. But Californians can still face debt collection in other ways, including from private companies that have bought up unpaid debt from local governments.

The Council added that court closures have made it much more difficult for people to exercise their legal rights regarding debt collection.

And that’s just personal debt. What about collections for businesses? Money makes the world go round and when anyone isn’t paid as planned, the whole system begins to have problems. One thing you know will happen is that all of these matters will end up in court. Legal disputes are EVERYWHERE! And when those things including landlord/tenant matters, contract issues, unlawful detainer cases, nuisance ADA claims and even collections threaten YOU and YOUR business call in the good guy business litigator Dean Sperling to resolve YOUR matter with YOUR best interests in mind!

More on the case:

https://www.latimes.com/california/story/2020-04-29/coronavirus-debt-collection-la-city-council-garcetti