On Tuesday, February 1, 2022, the first day of Black History Month, the University of the District of Columbia (UDC), Howard University, and at least fifteen other Historically Black Colleges and Universities (HBCUs) reportedly received bomb threats. Tzedek DC is proudly headquartered on the clinical floor at UDC’s David A. Clarke School of Law, where we have the privilege of working with UDC students. We at Tzedek DC condemn these threats, continue with our commitment to rejecting racism and hatred in all forms, and are in firm solidarity with UDC and its fellow HBCUs.
Rahsaan Bernard and Will Tom Join Tzedek DC’s Board of Directors
Tzedek DC is proud to announce the expansion of our Board of Directors through the addition of two new members, Rahsaan Bernard and Willard (Will) Tom.
Rahsaan Bernard serves as the President of Building Bridges Across the River (BBAR), the nonprofit organization that manages three nationally recognized projects in Southeast Washington DC: Townhall Education Arts Recreation Campus (THEARC), The Skyland Workforce Center, and the 11th Street Bridge Park. Before joining BBAR, Rahsaan served as the President and CEO of both the consulting firm Beyond Excellence LLC, specializing in health management and corporate wellness, and of Beyond Excellence Nursing and Therapy Services LLC, a licensed residential service provider of home health services. He also serves on the boards of Feeding America, Capital Area Food Bank, and the Catalogue for Philanthropy.
Will Tom is a Partner in the DC office of the international law firm Morgan Lewis. Prior to joining Morgan Lewis, he served in a series of senior government positions, including General Counsel of the U.S. Federal Trade Commission (FTC), Deputy Director of the Bureau of Competition of the FTC, and Counselor to the head of the Antitrust Division of the U.S. Department of Justice. Will has been a member of the District of Columbia Federal Judicial Nominations Commission and the American Law Institute, where he currently serves as an Adviser on the Restatement of the Law, Consumer Contracts.
In a joint statement, Tzedek DC’s Board Chair Irvin Nathan, Board Chair-elect Rachel Kronowitz, and Founding President and Director-Counsel Ariel Levinson-Waldman, said:
With the rippling impacts that the pandemic continues to have across DC for vulnerable community members, the need for Tzedek DC’s work—legal, systemic, and educational—is greater than ever. We are honored to welcome Rahsaan and Will to the Board. Their unique past and present leadership roles, talents, experiences, perspectives, and public interest commitments will bring additional strength to Tzedek DC’s efforts towards justice.
About Tzedek DC
Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with lower incomes facing the often-devastating consequences of debt collection and credit-related obstacles. This mission responds to the massive wealth gaps in DC and nationwide. Tzedek DC serves a client base of 90% African American, 60% women, and 25% disabled community members. Our strategic approach combines three synergistic activities: (i) free legal representation and advice; (ii) working in coalition to make systemic change; and (iii) providing community legal education on debt collection, identity theft, and credit management. Since 2017, Tzedek DC has served over 2,200 client households in legal matters—saving clients an average of $2,151 per full representation case—and helped catalyze systemic reforms with substantial impacts for hundreds of thousands of DC residents.
Tzedek DC Testifies to DC Council on Driver's License Reform
Tzedek DC Volunteer Staff Attorney Josh Levin and Founding President & Director-Counsel Ariel Levinson-Waldman testified to the DC Council Committee on Transportation & the Environment earlier this month as part of Public Roundtable regarding the Department of Public Works’ “Enforcement against Vehicles with Substantial Unpaid Traffic Fines.” The testimony discussed a “persistent, troubling assumption within the Executive that punishing DC drivers, by taking away their licenses due to unpaid fines and fees, is sound public policy” in order to achieve traffic safety.
Read the full testimony here.
Happy Holidays from Tzedek DC!
During the holiday season, some celebrate the 7 days of Kwanzaa... or the 8 days of Hanukkah... or the 12 days of Christmas.
We at Tzedek DC invite you to celebrate another set of numbers with us showing the reach and impact of our work during the past year:
An average of $2,151 saved for each client receiving full representation from us
More than 310,000 DC residents who have benefited from our systemic advocacy victories (read more here)
A total of 46 community partners spanning every ward of the District
The dedication of our extraordinary 11 staff members to going the extra mile on behalf of our client community
The immeasurable feelings that our clients, like the ones in this video, get from being supported and resolving their legal issues
Of course, all of our accomplishments over another difficult pandemic year (now 643 days working remotely!) are possible only because of the generosity of the 600+ donors and 35+ institutional funders that have supported our work—including two multi-year philanthropic partnerships with the Ford Foundation and Citi Foundation just announced!
However you celebrate during this holiday season, please accept the heartfelt thanks of our entire team here at Tzedek DC.
Tzedek DC Awarded $500,000 Grant under Citi Foundation’s Community Progress Makers Initiative
Tzedek DC has been selected by Citi Foundation as a recipient of the Community Progress Makers initiative, which supports visionary organizations across the U.S. that are working to connect communities with low incomes and communities of color to greater social and economic opportunities. As a Community Progress Maker, Tzedek DC will receive a multi-year, unrestricted grant of $500,000 and other assistance from the Citi Foundation from 2022-2023.
Through Citi Foundation’s support, Tzedek DC plans to expand the capacity of our team by, among other things, launching a pilot financial counselor project to complement our legal services as well as adding a dedicated community outreach and education professional. These positions are especially vital for meeting community-level needs now that DC’s emergency debt collection moratoria have expired. With the end of these protections, our client community now faces risks from an onslaught of debt collection, lawsuits, plummeting credit scores, restricted credit, and ever more scams and frauds.
Tzedek DC’s Founding President & Director-Counsel Ariel Levinson-Waldman said, “We deeply appreciate Citi Foundation’s vote of confidence through this unrestricted grant funding, which allows us to expand our work of empowering all DC residents, particularly community members of color with lower incomes and historically lower access to power, to live more financially stable and secure lives.”
“Six years ago, the Citi Foundation launched Community Progress Makers with a vision of empowering community leaders to grow their transformative impact through unrestricted, trust-based funding,” said Brandee McHale, Head of Community Investing and Development and President of the Citi Foundation. “This kind of approach and support is more important than ever as the U.S. continues to address the root causes and impacts of income and wealth inequality. Through the Community Progress Makers initiative, these social innovators and advocates can continue to look for new ways of addressing long-standing societal challenges at scale.” For more information about Community Progress Makers, please visit www.citifoundation.com/cpm.
About Citi Foundation
The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. The Foundation invests in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant communities. The Foundation's "More than Philanthropy" approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com.
About Tzedek DC
Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with lower incomes facing the often-devastating consequences of debt collection and credit-related obstacles. This mission is carried out as anti-racism work in response to the massive wealth gaps tracking race in DC and nationwide. Tzedek DC serves a client base of 90% African American, 60% women, and 25% disabled community members. Our strategic approach combines three synergistic activities: (i) free legal representation and advice; (ii) working in coalition to make systemic change; and (iii) providing community legal education on debt collection, identity theft, and credit management. Since 2017, Tzedek DC has served over 2,200 client households in legal matters, saving an average of $2,151 per full representation case, and helped catalyze systemic reforms benefiting hundreds of thousands of DC residents.
Tzedek DC Awarded $200,000 Grant from Ford Foundation for Disabilities Community Project
Tzedek DC is honored to receive a two-year grant of $200,000 from the Ford Foundation to support the Tzedek DC Disabilities Community Project. This project offers legal services, provides community education, and undertakes advocacy tailored to the particular needs of disabled DC residents with lower incomes facing debt and credit-related challenges. The project was launched in January 2020 under the leadership of Marissa Ditkowsky, a disabled attorney and activist at Tzedek DC. Tzedek DC recognized the deep need for such a project among our own client community; people with disabilities make up at least 25% of our clients, and a majority of our disabled clients are people of color.
The grant will allow the project to continue to build out its impact. In less than two years, the project’s initial accomplishments have included:
Providing 12 presentations to 230+ total attendees on topics relevant to the lives of disabled audience members so that they can understand and assert their rights and are empowered to make financial decisions for themselves.
Serving more than 285 clients with disabilities in direct legal services, and for each of those clients in full representation matters saving an average of $2,173, more than three and a half weeks’ wages at DC’s minimum wage.
Advocating for systemic reforms of federal student loan rules that affect disabled borrowers, including a now-adopted rule to automatically discharge the loans of any borrower that receives Social Security benefits and meets certain qualifications.
Advocating for systemic reforms of DC law to prohibit discrimination against disabled residents when algorithms are used in consumer, housing, and other contexts and to ensure that required notices are provided in accessible formats.
This grant award comes from the Ford Foundation’s path-breaking new Disability Rights Program, in recognition of the fact that “people with disabilities continue to face unfair policies that systematize poverty and persistent prejudice that has segregated them from movements and society.” Moreover, individuals with disabilities experience unique challenges within the legal system and when facing consumer protection and financial problems.
Tzedek DC’s Director Ariel Levinson-Waldman said, “We are especially appreciative of this grant because, despite the clear need, no other DC organizations (and very few nationally) focus specifically on individuals with disabilities who face debt-related problems. We are grateful to the Ford Foundation for its vote of confidence in the ability of Tzedek DC’s Disabilities Community Project to help fill that gap. We are excited to grow and deepen the work of our colleagues on the project by attorney Marissa Ditkowsky, Communications Manager Caitlyn Hickman, and others.”
About Ford Foundation
Established in 1936, the Ford Foundation has sought to reduce poverty and injustice, strengthen democratic values, promote international cooperation, and advance human achievement. The Foundation’s Disability Rights Program rests on the premise that to build a world where everyone is equal, we need to recognize how disability interconnects with the issues of social justice and follow the lead of the individuals at the center of the fight. By centering intersectionality and the voices of those most marginalized—from people of color and queer to immigrants and indigenous people—disability justice encourages us to see how society’s diverse systems of oppression reinforce each other and affect every member of the disability community.
About Tzedek DC
Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with lower incomes facing the often-devastating consequences of debt collection and credit-related obstacles. This mission is carried out as anti-racism work in response to the massive wealth gaps tracking race in DC and nationwide. Tzedek DC serves a client base of 90% African American, 60% women, and 25% disabled community members. Our strategic approach combines three synergistic activities: (i) free legal representation and advice; (ii) working in coalition to make systemic change; and (iii) providing community legal education on debt collection, identity theft, and credit management. Since 2017, Tzedek DC has served over 2,200 client households in legal matters and helped catalyze systemic reforms benefiting hundreds of thousands of DC residents.
Tzedek DC Recognized in Eight 2021 Nonprofit Directories
Tzedek DC has received increasing recognition from the philanthropic community. In just this past year, we were included in eight nonprofit directories, including:
GuideStar—Platinum Transparency
Catalogue for Philanthropy—One of the Best
Compass—Nonprofit Excellence
Washington City Paper—Give It Up, D.C. Recommended Organization
Benevity—Recommended Cause
DC One Fund—Recommended Charitable Organization
Combined Federal Campaign—Number 49717
United Way—Number 9286
These recognitions come on top of other recent highlights for Tzedek DC, including a national award from the Foundation for Improvement of Justice that was accompanied by a gift of $10,000. Additionally, Founding President & Director-Counsel Ariel Levinson-Waldman was also recently named a 2021 “Community Changemaker” by the Catalogue for Philanthropy for his work with Tzedek DC.
Tzedek DC Testifies to DC Council on Protecting Consumers from Unjust Debt Collection Practices
Tzedek DC staff members Ariel Levinson-Waldman (Founding President & Director-Counsel), Sarah Hollender (Associate Director), and A.J. Huber (Staff Attorney) testified to the DC Council Committee of the Whole yesterday as part of a public hearing regarding the Protecting Consumers from Unjust Debt Collection Practices Amendment Act of 2021. The testimony indicates Tzedek DC’s strong support of the bill, which would represent a critical step forward in promoting important access to justice and racial equity principles as well as the goal of a well-functioning civil justice system for DC residents facing debt collection.
Read the full testimony here.
Director Ariel Levinson-Waldman Named 2021 CFP Community Changemaker
Tzedek DC is proud to announce that Founding Director Ariel Levinson-Waldman has been named by the Catalogue for Philanthropy as a 2021 Community Changemaker. This award, which will be conferred at a virtual ceremony on November 18, “honors those working each day to build community in our region and to make a difference, close to home.” Ariel will participate in a panel discussion with the two other awardees, Mary Brown of Life Pieces to Masterpieces and Parisa Norouzi of Empower DC.
Panelists and additional speakers will bring attendees up to date on what is happening across the community on a range of pressing social issues and offer ways to get involved.
Ariel said, “This recognition is a testament to Tzedek DC’s mission and to my talented, dedicated teammates. I am grateful to be selected by the Catalogue for this honor, and to be in the company of such outstanding community leaders—all of us challenged as never before by the unprecedented conditions created by COVID-19. Debt collection, with its disparate impact on African American and Latino families, is particularly acute in DC. More than 35% of adults in DC’s communities of color—five times the rate for white DC residents—have a debt in collections today. Tzedek DC and a broad coalition of allies worked to establish an emergency moratorium on debt collection during the pandemic, but those protections have recently expired. We are especially grateful to have this work lifted up by the philanthropic community at the start of what is expected to be a flood of mass debt collection lawsuits and credit impairment problems threatening vulnerable community members.”
The Community Changemakers 2021 virtual event is from 6:30-7:45 pm on November 18. The event is free; information and required registration is at: www.cfpchangemakers.org
About the Catalogue for Philanthropy
Created as a project of the Harman Family Foundation in 2003, the Catalogue for Philanthropy began out of a desire to help donors find and support community-based nonprofits—those with great programming and sound finances, but little visibility and limited capacity to tell their stories to a large audience. Since 2003, the Catalogue has raised more than $45 million for its network of charities vetted by a team of over 150 local experts.
About Tzedek DC
Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of District of Columbia residents with lower incomes, from all backgrounds and in all eight of DC’s wards, dealing with the often devastating consequences of abusive debt collection practices and other consumer-related issues. Tzedek DC is a 501(c)(3) nonprofit organization headquartered at the University of the District of Columbia David A. Clarke School of Law. Combining a small staff with the efforts of dozens of students and over 150 trained pro bono volunteers, Tzedek DC engages in community outreach work in Spanish and English, advocates for systemic reforms, and provides direct, pro bono services. Since 2017, Tzedek DC has served over 2,000 client households, saving them an average of $2,151 per full representation case—equivalent to nearly a month’s worth of pay at DC minimum wage.
Los casos de colección de deudas han vuelto a comenzar en el Distrito
El periodo de suspensión de la colección de deudas ha terminado—El año pasado el Concejo de DC aprobó una ley temporal que suspendió la presentación de nuevos casos de colección de deudas y pausó casos pendientes. Estas protecciones han concluido. Se están presentando casos nuevos, y aquellos casos cuyas vistas se cancelaron debido a la pandemia ahora están en proceso de reprogramación.
¡Hay muchas protecciones legales para los residentes de DC que tienen problemas de crédito o problemas con deudas!
En un caso de colección de deudas, se pueden proteger algunos tipos de ingresos de los acreedores.
Puede que también se pueda proteger algún dinero y otros bienes si usted es el “jefe de familia”.
Aun cuando los acreedores le pueden quitar sus ingresos, puede que, si esto le está causando dificultades, la ley le permita a usted limitar cuánto es que le quitan.
Si hay un fallo en su contra porque usted no se presentó en corte, es posible que pueda reabrir el caso. Se acaba de aprobar una ley con protecciones adicionales para aquellas personas que están siendo demandadas por causa de colección de deudas médicas (entre otros tipos de deudas), así que llámenos en caso de que esto le sirva de ayuda en su caso en particular.
Póngase en contacto con nosotros si lo han demandado por una deuda. Para completar el proceso de inscripción, llámenos al (202) 274-7386 o llene el formulario en línea aquí: https://www.tzedekdc.org/formulario-de-inscripcion
Debt Collection Cases Have Restarted in the District
Debt Collection Moratorium Has Ended—The DC Council passed a temporary law last year stopping new debt collection cases from being filed and pausing pending cases. These protections have ended. New cases are being filed, and cases that had hearings canceled because of the pandemic are being rescheduled.
There are many legal protections for DC residents with debt- or credit-related problems!
Some income is protected from creditors in a debt collection case.
Some money and other assets may also be protected if you are head of your household.
Even if your income can be taken by creditors, the law may allow you to limit how much they can take if it is causing a hardship.
If there is a judgment against you because you didn’t show up to court, you may be able to reopen the case.
A new law has been passed with additional protections for people experiencing debt collection lawsuits or medical debt, among others, so contact us in case it might be helpful in your case.
Contact us if you are sued on a debt. You can complete an intake by calling us at (202) 274-7386 or by completing an online form here: https://www.tzedekdc.org/legal-services-contact-us
Click below for a downloadable copy of this alert.
Tzedek DC Submits Testimony to Senate on Improving Social Security Income
In this testimony to the Subcommittee on Social Security, Pensions, and Family Policy of the
United States Senate Committee on Finance, Tzedek DC makes five central recommendations. Congress should:
Increase the statutory SSI monthly maximum benefit to 100 percent of federal poverty guidelines to help fill the gap that people with lower incomes experience in meeting their basic needs.
Reform asset limits to both:
Expand beyond $2,000 for individuals because $2,000 is too low a limit to allow claimants to save for an emergency or other critical necessities.
Exclude the assets of a spouse to expand the asset limit for married couples beyond $3,000, so that disabled people are not forced to decide whether to marry their partners or continue to receive needed benefits.
Amend substantial gainful activity, income, and other work incentive requirements, because government should encourage people to live their lives in ways that are meaningful to them without risk of losing their benefits, particularly if they are unsure of whether work will be something that can continue based on their disability.
Engage in oversight to ensure the Social Security Act’s purpose is not being frustrated by the Social Security Administration’s execution of its statutory mandate. The current rules lead to consistent issues with overpayments that disabled people cannot afford to repay and lead to particular problems for claimants who have a disability that impacts cognition.
Ensure the SSA’s budget provides the agency sufficient resources to carry out its important statutory mission.
Tzedek DC's full testimony is available here.
Eat Well, Do Justice Recap: Spread Hummus, Not Hate!
On September 13, 2021, Tzedek DC held our fifth annual Eat Well, Do Justice celebration. We are enormously grateful to everyone who supported this event, which helped us raise a record $345,000 in support of our mission over the course of a fun, substantive, and tasty hummus-themed evening. A huge thank you to all who made the evening a special one!
The virtual program was emceed by Emmy Award-winning television journalist and author David Gregory. David kicked off attendees with a short clip from the trailer of Hummus! The Movie, filmed in 9 different countries involving over 1,000 plates of hummus.
The program then featured a short video about Tzedek DC from ARound Robin Productions that included testimonies from client community members and Tzedek DC staff members. Founding Director Ariel Levinson-Waldman then shared remarks, including an emphasis on the racial disparities in wealth and debt collection rates in DC, and closed by reflecting on Rabbi Abraham Joshua Heschel’s wisdom: “through acts of justice, we are in this modern world praying with our feet.”
Attendees were able to experience beautiful performances from Grammy Award-nominated artist Josh Groban and In the Heights Broadway cast member Willis White, as well as uplifting remarks from DC Attorney General Karl Racine and DC Councilmember Brianne Nadeau. We are so incredibly grateful for all their kind words, and for their participation in Eat Well, Do Justice!
Though the event was virtual, attendees enjoyed a delicious variety of hummus and pita, most of them picked up from the Eat Well, Do Justice staging station in Temple Sinai’s parking. Captained by event co-chair Annie Binder, Tzedek DC volunteers and staff worked tirelessly to prepare the hummus bags, collectively handling 2,500 containers of hummus, bagging and stapling 900 individual portions plus 400+ portions of pita and placing stickers on another 400+ containers, and assembling all the pieces into hundreds of Tzedek DC insulated bags.
The five talented and generous local hummus restaurants were recruited by honorary event chair Bonnie Benwick. A huge, special thank you to the participating restaurants: Agora, Amsterdam Falafelshop, Maydan, Sababa, and Taïm.
Sababa was declared this year’s winner with their delicious take on a sabich-themed hummus dish, featuring a “tahini-forward” hummus topped with roasted eggplant, cherry tomatoes, Persian cucumbers, pickled chilis, sumac onions, and za’atar and sumac spices. Sababa won both the popular and judge’s votes, but the competition was so close that we received at least one request for ranked-choice voting because it was too hard to pick just one!
We are grateful to guest judges Rahsaan Bernard, President of the DC nonprofit Building Bridges Across the River; Oliver & Allee Cox, owners of Pearl’s Bagels on 7th Street NW and winners of EWDJ 2020; and Rabbi Hannah Goldstein, Associate Rabbi at Temple Sinai and Member of the DC Mayor’s Interfaith Council. The judges certainly took care in their deliberations, with Oliver & Allee Cox even evaluating the hummus on its “spreadability” on a Pearl’s Bagel!
The event was co-chaired by Annie Binder, Laura Kumin, June Kress, and Nina Simon. The host committee and sponsors were also instrumental in the evening’s success. For those who couldn’t tune in, visit the 2021 Eat Well, Do Justice webpage to watch an abridged recording. You can also click the links above to watch individual segments.
As announced at the event, gifts to Tzedek DC are being matched dollar for dollar up to $25,000 thanks to the generosity of event Host Committee members Carol Mates & Mark Kahan and Thorn & Sharis Pozen. That match has not yet closed. Please consider donating now to double the impact of your gift.
As in 2019 and 2020, the 2021 Eat Well, Do Justice event sold out days before the event. We hope that 2022’s event will be in person and that you will join us either way and secure your tickets when they become available next summer!
Tzedek DC Celebrates National Award from Foundation for Improvement of Justice
We are proud to announce that Tzedek DC has been named a recipient of the 2021 Paul Chapman Gold Medal, given by the Atlanta-based Foundation for Improvement of Justice. Tzedek DC is one of nine awardees selected from across the United States. The Chapman Gold Medal, which also comes with a gift of $10,000, recognizes innovative programs that have made demonstrable improvements to local, state, and federal systems of justice, and that can serve as models.
In announcing the award, the Foundation cited Tzedek DC’s collaboration with other local agencies and DC policymakers to bring about systemic reforms, including fines and fees and wage garnishment reforms. The Foundation also noted our pro bono direct legal services and track record of saving client households an average of $2,151 per full debt collection case representation (the equivalent of more than four weeks’ work at DC’s minimum wage).
Founding President & Director-Counsel Ariel Levinson-Waldman said “We are grateful and honored to receive the Chapman Prize, and to be in the company of the many distinguished organizations and individuals who have also received this award, with whom we share the goal of turning ideals of justice into lived reality for people regardless of their wealth and income.”
About the Foundation for Improvement of Justice. The Foundation for Improvement of Justice is a private, not-for-profit institution founded in 1984 for the purpose of improving local, state, and federal systems of justice within the United States. Past winners of the Chapman Prize include Steven Bright, AYUDA, and the National Immigrants Justice Center.
About Tzedek DC. Drawing from the Jewish teachings of “Tzedek, tzedek tirdof,” or “Justice, justice you shall pursue,” Tzedek DC’s mission is to safeguard the legal rights and financial health of DC residents with low incomes dealing with the often devastating consequences of abusive debt collection practices and other consumer related issues. Tzedek DC is a 501(c)(3) nonprofit organization headquartered at the University of the District of Columbia David A. Clarke School of Law.
Tzedek DC's 2021 Mid-Year Update
Ms. Kassa is a Ward 4 resident, a single mother of 3, and an immigrant to the U.S. from Ethiopia, and a restaurant entrepreneur who was sued by the commercial landlord of the restaurant she co-founded just months before the pandemic started.
Ms. Silver is a Ward 7 resident, 36-year-old African American, single mother of three who faced an obstacle to getting a job due to a problem on her credit report.
Mr. Green is a disabled DC resident living on monthly Supplemental Security Income of less than $800, who was victimized by identity theft in connection with COVID-19 benefits.
These are just three of the hundreds of clients whose problems Tzedek DC has been working to help solve as the public health emergency has continued throughout the first half of 2021.
Read more about these matters and others in our 2021 updates below on our work in each of our interconnected areas of priority: legal services, systemic reform (including a major debt collection bill that we helped champion and was passed yesterday!), and community outreach.
Now entering its sixteenth month, the COVID-19 pandemic’s overlapping public health and financial crises are continuing to generate a toxic combination of reduced income, increased debt, and increased account delinquencies for DC residents. Please look out for volunteer opportunities this fall as thousands of new cases are filed once the current emergency moratoria expire; join us for Eat Well, Do Justice on September 13, 2021, at 6 pm, and follow us on Facebook and Twitter. With unprecedented challenges facing our client community, we are especially thankful this year for your ongoing support.
Legal Services
In a classic pandemic legal services moment, Tzedek DC Client Norris and Director Ariel Levinson-Waldman FaceTime Volunteer Staff Attorney Josh Levin.
Ms. Kassa, an immigrant from Ethiopia with US citizenship, is a single mother of three living in Ward 4. Ms. Kassa and three other people opened a franchise restaurant called “Butter Chicken Company.” The business entered into a lease agreement for commercial restaurant space in Columbia Heights effective from August 2019 to October 2024. Ms. Kassa signed a Guaranty Agreement and is therefore personally liable for any breach of the lease agreement.
Due to the pandemic, the restaurant was closed from March-October 2020. Since Butter Chicken reopened in November 2020, Ms. Kassa has been working there without pay this year (and living solely on unemployment benefits), because the restaurant is currently making only a quarter of its pre-COVID-19 income—not nearly enough to pay the rent and cover other expenses.
The landlord filed a complaint for breach of contract against the business and all four owners, including Ms. Kassa. He was seeking $146,100 in damages, plus attorneys’ fees and court costs, and also reserved his right to seek damages for the remainder of the lease term. Ms. Kassa reached out to a community nonprofit that referred her to Tzedek DC.
Her savvy Tzedek DC attorney, Jorge Tormes, advised Ms. Kassa about the Small Business Administration (SBA) and its COVID-19 assistance for small businesses, alerting her to both the Paycheck Protection Program and the Restaurant Revitalization Fund. As a result of Jorge’s advice, Butter Chicken Company was able to get enough money from the SBA to cover the past-due rent.
Since the start of 2021, we have helped nearly 400 DC residents with debt-related legal problems, securing relief that saved clients an average of over three weeks’ worth of wages at the DC minimum wage.
When the current emergency prohibitions on new debt collection lawsuits, garnishments, and attachments end in September 2021, thousands of DC residents will be swamped by debt collection, litigation, and credit report impairment problems. In fact, Tzedek DC is already being called upon to help residents navigate legal and financial issues arising from COVID-19, as exemplified by our client Ms. Kassa.
Our clients also continue to experience non-pandemic-related issues, as in the following two cases:
Ms. Silver is a 36-year-old African American, single mother of three, and resident of Ward 7. She received a job offer from a government contractor for a position paying significantly more than she was currently earning. However, that offer was contingent upon her passing a background check, and during her background check, an alleged debt to a prior landlord was flagged for review. Ms. Silver asked Tzedek DC to help her sort things out. After reviewing the credit report that had been generated for her background check, staff attorney A.J. Huber determined that the credit report was falsely listing a monetary judgment that had never, in fact, been awarded to the prior landlord. Ms. Silver then retained Tzedek DC to help her dispute the credit report under the Fair Credit Reporting Act (the “FCRA”). Because such a dispute takes at least 30 days to resolve, A.J. also wrote a letter to the person conducting the background check, stating the services that Tzedek DC was providing and why he believed the information was incorrect. Although the FCRA dispute has not yet been resolved, Ms. Silver recently informed A.J. that she had passed her background check and would soon be starting her new job. Ms. Silver fervently thanked A.J. for working with her and for being “available for low-income people, especially the ones who want to change their circumstances.”
Mr. Green is a 57-year-old disabled man with unstable housing in DC living on monthly Supplemental Security Income of less than $800. He was in an inpatient addiction rehabilitation facility when the COVID-19 stimulus payments were announced. Since he doesn’t file a tax return because his income is low, to receive a stimulus payment he was required to complete a form on the IRS website. Not being computer literate, Mr. Green relied on a fellow resident at the rehab center who was “good with computers.” However, the resident inserted his own bank account information instead of Mr. Green’s into the application form, thereby diverting the payment from Mr. Green’s account. Mr. Green’s case remains ongoing and he is working with staff attorney John Blake.
Tzedek DC’s overarching goals continue to be preventing client households from falling into the economic abyss and keeping them on the ladder towards financial stability.
Systemic Reform
Tzedek DC Staff Attorney John Blake testifies to DC Council in support of eviction record sealing.
Through our coalition-based advocacy, we have made substantial progress on several systemic reforms over the past six months.
Most recently, in a long-term systemic reform effort culminating in yesterday’s vote in the Council, Tzedek DC and coalition allies, in collaboration with DC Council Chair Phil Mendelson and Attorney General Karl Racine, catalyzed major changes in DC’s debt collection laws. The reforms expand the scope of the protections, strengthen anti-harassment measures, limit punitive actions that can be taken against DC residents facing debt collection suits, address the underlying causes of default judgments, and reform statute of limitations rules to prevent so-called “zombie debt.” Tzedek DC’s explainer is here. In celebrating this step, Attorney General Racine emphasized: “As @TzedekDC says: ‘Too often in connection with debt collection, residents are fearful that their savings may be wiped out, their wages garnished, or even that they may face arrest.’”
Further, building on our initial success in reforming DC’s wealth-based driver’s license system in 2019, we released a report in April titled “Driving DC to Opportunity,” aimed at ending DC’s policy of punishing residents with unpaid fines or fees by disqualifying them from renewing their licenses. The report highlights real-life stories from DC residents impacted by this discriminatory “Clean Hands” law, which in effect ties the right to drive to wealth, and places obvious burdens on those who cannot afford to pay. The report and our coalition-based advocacy campaign—with 34 coalition partners including the ACLU, Bread for the City, The Arc/Skyland Workforce Center, Color of Change, and dozens of others, has gathered extensive media coverage and paved the way for two bills that were introduced in the DC Council in the weeks following the report.
In March, the federal government took actions to end the inclusion of credit history and credit scores in evaluating immigrants—criteria that had previously been mandated under the Public Charge Rule promulgated by the U.S. Department of Homeland Security (DHS). Tzedek DC was one of several consumer, anti-poverty, and civil rights groups that sued the DHS over the Public Charge Rule.
Soon after the pandemic hit DC, we and our coalition partners successfully advocated for crucial emergency protections like moratoria on debt collection, wage garnishments, bank seizures, evictions, and utility cut-offs, as well as foreclosure protections. In addition, we obtained a first-of-its-kind right to file a COVID-19 credit report alert, which prevents end-users of one’s report from factoring in missed or late payments that occurred due to pandemic-related hardship.
Building on all this advocacy work, Tzedek DC has testified to the DC Council numerous times over the past six months in support of issues such as:
Community Outreach
Community Outreach & Communications Consultant Naomi Ayala, Associate Director Sarah Hollender, and Senior Advisor Janet Lowenthal present a Sin Deudas, Sin Dudas training at CARECEN.
Community partnerships have allowed us to disseminate actionable debt- and credit-related guidance to over 100,000 DC residents over the past four years, and we will continue to expand this transformative work in the years ahead.
Already in 2021, for example, we have hosted staff trainings for partners like the United Planning Organization, the DC Affordable Law Firm, and the DC Volunteer Lawyers Project. We have also hosted webinars for community members in conjunction with Capital Area Asset Builders, the Jewish Foundation for Group Homes, and Sinai House.
Likewise, our community outreach campaign, “¡Sin Deudas, Sin Dudas!”, or “No Debts, No Doubts!”, continues to promote financial empowerment in both English and Spanish through a combination of webinars, digital and print ads, and radio PSAs. The outreach also contributes to the goal of increasing community awareness and use of our legal services. So far in 2021, we have developed three bilingual “knowledge tools” as part of our Partner Toolkit for organizational allies. These engaging one-pagers offer DC residents timely, accessible and actionable information on credit, debt, scams, and fraud. We have also printed a bilingual business card, stating the availability of our free legal services for problems of debt and credit management. Our fully vaccinated Spanish-speaking staff members will soon begin distributing these in the community, with a focus on Ward 1, and MOLA’s “Mercado Movil” in Ward 7.
Our Spanish language campaign offers a template, lessons learned, and helpful contacts to expand our outreach work to the city’s larger English-speaking, primarily Black community under the moniker “No Debts, No Doubts!” To begin with, we are making the “knowledge tools” available both in hard copy and electronically. We will also offer our growing series of presentations, now via webinar but hopefully soon in person, on various aspects of credit and debt—beginning with the Petworth Neighborhood Library, which is eager to host our workshops.
Our Disabilities Community Project, launched in January 2020 and led by Staff Attorney Marissa Ditkowsky, enables us to focus more intentionally on meeting the particular needs of this client community, whose members often have difficulties accessing information, face widespread discrimination throughout law enforcement, and have been particularly vulnerable in the pandemic. The project has produced training materials for working with individuals with disabilities, trained allied service providers, and offered financial and legal education sessions at the D.C. Library’s Center for Accessibility, Sinai House, and Project ACTION!, plus another in Spanish (as part of our Sin Deudas, Sin Dudas program) through the DC Developmental Disabilities Council. In June, we also launched an eight-week series of workshops for the Jewish Foundation for Group Homes residents. In its first 14 months, the project saved 85 clients a total of almost $53,000 and indirectly impacted thousands more through changes successfully proposed to court-based rules and procedures.
Tzedek DC Applauds and Recaps DC Council Bill Protecting Consumers from Unjust Debt Collection Practices
DC residents won a major legislative victory today, thanks to the Council having passed the “Protecting Consumers from Unjust Debt Collection Practices Emergency Amendment Act” (the Act). Introduced by Chairman Phil Mendelson in partnership with DC Attorney General Karl Racine, the Act marks the first major revision of the debt collection laws first passed in 1971 and will meaningfully expand consumer protections as the COVID-19 public health emergency measures expire.
Crucially, these protections advance racial equity—DC residents of color face debt collection at five times the rate experienced by white DC residents. Debt in America: An Interactive Map, Urban Inst. (last updated March 31, 2021). And the timing of the Act is important: as Tzedek DC and allies have been urging during the public health emergency, such legislation is necessary as debt collectors prepare to file a tsunami of claims following the end of the public health emergency moratorium on debt collection suits.
Here, we highlight some of the Act’s reforms. The Act:
Expands the scope of the protections
Defines protections for “consumer debt” broadly to cover all personal, family, medical, or household debts, which is important because the outdated statute provided protections mostly limited to installment loans, a very narrow category of debts
Strengthens anti-harassment measures
Prohibits creditors and debt collectors from making false threats and false reports
Stops creditors and debt collectors from calling at unreasonable hours or with unreasonable frequency
Contains enforcement mechanisms and penalties for violations
Limits punitive actions that can be taken against DC residents facing debt collection suits
Caps (at 15%) the attorneys’ fees that a plaintiff can seek in a debt collection lawsuit
Protects DC residents from being imprisoned for failure to pay or appear in debt collection cases and raises the threshold for the issuance of bench warrants, an issue that has become increasingly important as certain debt collection lawyers have used the coercive tactic of obtaining arrest warrants in debt collection cases
Addresses the underlying causes of default judgments
In an important step for fairness, includes robust evidentiary requirements that must be met for a debt collector to file a case, win a judgment, or collect on a debt (This is especially significant for unrepresented defendants, as it means that the burden is on the debt collector, not the individual without a lawyer, when it comes to the issue of whether the complaint is properly substantiated.)
Requires verification of defendant’s current address immediately prior to commencing an action
Tightens the statute of limitations
Specifies a three-year statute of limitations on debt, regardless of whether the debt is labeled “under seal”
Prevents plaintiffs from suing where the statute of limitations has lapsed
Stops “zombie debts” from coming back to life through payments or affirmations made after the expiration of the statute of limitations
The Act is currently being reviewed by Mayor Bowser and, when signed, will take effect immediately to help ensure that DC residents are protected from abusive debt collection practices until a permanent statute passes through the full legislative process.
Community members or others with questions about the new protections can contact Tzedek DC at ms@tzedekdc.org or (202) 274-7386.
Tzedek DC Testifies To DC Council Regarding the OVSJG FY22 Budget
Ariel Levinson-Waldman, Founding President & Director-Counsel of Tzedek DC, testified to the DC Council Committee on Judiciary & Public Safety regarding the FY22 budget for the Office of Victim Services and Justice Grants. The testimony outlines the critical role that Access to Justice funding plays in Tzedek DC’s work.
Read the full testimony here.
Tzedek DC and JCRC Testify on Ensuring an Equitable End to COVID-19 Protections
Tzedek DC and the Jewish Community Relations Council of Greater Washington submitted a joint testimony to the DC Council Special Committee on COVID-19 Pandemic Recovery in support of an equitable end to safety net consumer protections put in place during the pandemic. The testimony implores policymakers to continue to recognize the financial insecurity of households across the District and the need to protect residents who will otherwise suffer spiraling consequences.
Read the full testimony here.
Tzedek DC and JCRC Testify in Support of Eviction Record Sealing and Fair Tenant Screening
Tzedek DC and the Jewish Community Relations Council of Greater Washington submitted a joint testimony to the DC Council Committee on Housing and Executive Administration in support of the Eviction Record Sealing Authority Amendment Act of 2021 and the Fair Tenant Screening Act of 2021. The testimony underscores the importance of these proposed bills in limiting the harms to DC residents of an eviction or lawsuit from their landlord as well as ensuring that DC consumers have protections from a system that is not adequately regulated by the Fair Credit Reporting Act.
Read the full testimony here.
Tzedek DC Testifies to DC Council in Support of Expanding Support for Victims of Crime
Tzedek DC Staff Attorney John Blake testified on Friday to the DC Council Judiciary & Public Safety Committee of the Whole in support of the Expanding Supports for Crime Victims Amendment Act of 2021. The testimony also proposes further expansion of qualifying crimes to include financial crimes.
Read the full testimony here.