Debt Collection Problems

Debt Collection Laws

Minnesota Fair Debt Collection Practices Act

Nobody should have to endure harassment and humiliation from a debt collector or creditor when having difficulty paying bills.  Difficult economic times are stressful enough.  To protect consumers from undue harassment or abuse, Congress enacted the Fair Debt Collection Practices Act.  Protection from harassment does not have to necessarily end there.  Consumers in certain states can turn to the laws of their own state for added protection.  Minnesota, for instance, is a state that has enacted legislation to protect consumers that covers collection agencies. Minn. Stat. ยงยง332.31 to 332.45

The Minnesota law covers debt collection agencies, but excludes lawyers, financial institutions (such as banks and other lenders), and real estate professionals.

The statute is a licensing statute - requiring the debt collector to be licensed to collect in Minnesota.  The law prohibits misleading or deceptive communications, misrepresentations that one is an attorney or credit bureau, simulated legal process, unlawful threats or coercion,  publications, misrepresenting itself as a government agency, using fictitious names, failure to provide full agency name when collecting a debt, enlisting the aid of neighbors, failure to report monies collected.  The Minnesota law makes no mention of any private remedies.