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The Systemic Racism of Public Debt Collection in California

A new report by the California Reinvestment Coalition reveals that the privatized system of public debt collection is pervaded with systematic racism. Jeremy Mohler of In the Public Interest says, “In other words, California counties are imposing excessive fines and fees on their poorest residents not so much to fund government but to enrich a handful of corporations. (It’s important to note that two corporations, AllianceOne and GC Services, hold a majority of the contracts, and have been sued in other states for worker overtime violations and making unlawful collection calls).”

Source: The American Prospect

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Unholy Alliance: California Courts’ Use of Private Debt Collectors

A new report by the California Reinvestment Coalition reveals that the privatized system of public debt collection is pervaded with systematic racism. This research showed that the collection of fines and fees is a regressive form of income generation for municipalities. Private debt collectors profit from fines and fees assessed on poor people, facilitated by the state of California. However, the revenue to counties from collecting these fines and fees is miniscule; this system only benefits the private debt collectors.

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