Plornish visits Amy to tell her that Flora is interested in hiring her. When Amy arrives at the Casbys’, Flora talks about her former engagement with Clennam and her marriage to her late husband. Amy becomes faint and attributes it to her gratitude toward Flora and Clennam, and because of Flora’s candor, she tells her of her life in Marshalsea. Amy dines with the family and Pancks, whom she is suspicious of, thinking he may be one of her father’s creditors. When they are alone, Pancks tells her that he is a fortune-teller and reads her palm, using the information Clennam had told him. Amy is shocked and Pancks tells her not to mention their encounter. Yet she often sees him following her, even within the prison, where he becomes known among the prisoners. As a result, Amy becomes more solitary and keeps to her room.

Pancks becomes acquainted with the Chiverys and uses Young John and Mrs. Chivery to help with his secret missions. He invites John to his lodgings with his landlord, Mr. Rugg, an attorney. They discuss a conspiracy, which is later revealed to revolve around the Dorrits. Meanwhile, John Baptist Cavalletto becomes the newest resident of Bleeding Heart Yard.