Sign This Agreement and Your Bank Account Might Be Frozen

Predatory lenders are turning to Connecticut to help collect their debts, using a legal trick to bypass judicial review.

Illustration: Chris Burnett for Bloomberg Businessweek

Jared Alfin has powers that many of his fellow debt collectors can only dream of.

Alfin, a lawyer in Simsbury, Conn., can order someone’s bank account frozen without warning. He doesn’t need a judge’s say-so. He simply drafts some boilerplate legal papers and has them dropped off at the bank.