Paper short abstract:

In recent decades, the Czech Republic has produced a specific form of a never ending liminality by not regulating non-bank loans, non-existent housing first policy, and high salary deductions via enforcement proceedings, leaving ex-prisoners living in work dormitories with no chance to move on.

Paper long abstract:

In recent decades, the Czech Republic has produced a specific form of housing precarisation by refusing regulations of non-bank loans, abused in a unique predatory system aimed at marginalised populations. The raison d'etre of this system was not to loan money for a high interest, but, rather, to make debtor to breach the contract that would trigger contracted sanctions. Until 2016, these sanction were not regulated by a law, so creditors could, potentially, put any obligations to the contract and it was no exceptions that several hundreds Euros loan has became several thousands Euros loan after a couple of years. The creditors aimed at various marginalised populations because of their weak social position and poverty, producing life-time slaves, as in some cases sanctioned interest was higher than the sum that was repaid. This situation also applies to Czech ex-prisoners whose indebtedness is extremely high (the average owed sum of an ex-prisoner is as much as nearly 27,000€) and practically all of them have some debt. The indebtedness is a life-limiting factor since deductions via enforcement proceedings are so high that the rest of the money are barely enough to meet subsistence needs. This is especially the case of housing because ex-prisoners cannot afford standard housing after deductions so they have to live in work dormitories, a sub-standard form of housing originally intended to be a temporary housing for industrial workers. Many ex-prisoners cannot move on to the a standard housing due to lifetime indebtedness, living a never ending liminality.