332.31 DEFINITIONS. Subdivision 1. Terms. The terms in this section for the purposes of sections 332.31 to 332.44 shall have the meanings given them. Subd. 2. Person. “Person” means and includes individuals, partnerships, associations or corporations. Subd. 3. Collection agency. “Collection agency” or “licensee” means (1) a person engaged in the business of collection for […]
332.311 TRANSFER OF ADMINISTRATIVE FUNCTIONS. The powers, duties, and responsibilities of the consumer services section under sections 332.31 to 332.44 relating to collection agencies and debt buyers are hereby transferred to and imposed upon the commissioner of commerce. History: 1973 c 720 s 54 subd 1; 1979 c 144 s 4; 1980 c 516 s […]
332.32 EXCLUSIONS. (a) The term “collection agency” does not include banks when collecting accounts owed to the banks and when the bank will sustain any loss arising from uncollectible accounts, abstract companies doing an escrow business, real estate brokers, public officers, persons acting under order of a court, lawyers, trust companies, insurance companies, credit unions, […]
332.33 LICENSING AND REGISTRATION. Subdivision 1. Requirement. Except as otherwise provided in this chapter, no person shall conduct business in Minnesota as a collection agency or debt buyer, as defined in sections 332.31 to 332.44, without having first applied for and obtained a collection agency license. A person acting under the authority of a collection […]
332.3351 EXEMPTION FROM LICENSURE. A collection agency shall be exempt from the licensing and registration requirements of this chapter if all of the following conditions are met: (1) the agency is located in another state that regulates and licenses collection agencies, but does not require a Minnesota collection agency to obtain a license to collect […]
332.34 BOND. The commissioner of commerce shall require each licensee to file and maintain in force a corporate surety bond, in a form to be prescribed by, and acceptable to, the commissioner, and in a sum of at least $50,000 plus an additional $5,000 for each $100,000 received by the collection agency from debtors located […]
332.345 SEGREGATED ACCOUNTS. A payment collected by a collector or collection agency on behalf of a customer shall be held by the collector or collection agency in a separate trust account clearly designated for customer funds. The account must be in a bank or other depository institution authorized or chartered under the laws of any […]
332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION. No registration shall be accepted for, and no license shall be issued to, any person, firm, corporation or association who or which, or any of the officers of which have, within the past five years: (1) been convicted in any court of fraud or any felony; (2) been […]
332.355 AGENCY RESPONSIBILITY FOR COLLECTORS. The commissioner may take action against a licensee for any violations of debt collection laws by its debt collectors. The commissioner may also take action against the debt collectors themselves for these same violations. History: 2000 c 483 s 51; 1Sp2021 c 4 art 5 s 16
332.365 CREDIT COUNSELING ORGANIZATIONS; DEBTORS. Subdivision 1. Duties of commissioner. (a) The commissioner shall develop and maintain a document that includes the contact information for nonprofit organizations domiciled in Minnesota that provide credit counseling services to debtors. Credit counseling services include but are not limited to (1) helping debtors understand their rights and responsibilities, and […]
332.37 PROHIBITED PRACTICES. (a) No collection agency, debt buyer, or collector shall: (1) in collection letters or publications, or in any communication, oral or written threaten wage garnishment or legal suit by a particular lawyer, unless it has actually retained the lawyer; (2) use or employ sheriffs or any other officer authorized to serve legal […]
332.38 APPLICATION IN CASE OF PRETENDED PURCHASE, ASSIGNMENT OR USE OF A FICTITIOUS NAME. The provisions of sections 332.31 to 332.44 shall apply to any person who, by any device, subterfuge or pretense, makes a pretended purchase or takes a pretended assignment of accounts from another for the purpose of evading provisions of sections 332.31 […]
332.385 NOTIFICATION TO COMMISSIONER. The collection agency or debt buyer licensee shall notify the commissioner of any employee termination within ten days of the termination if the termination is based in whole or in part on a violation of this chapter. History: 1993 c 295 s 2; 1Sp2021 c 4 art 5 s 18
332.39 INJUNCTIONS. The attorney general or the county attorney of any county may apply for an injunction in district court to enjoin any violations of sections 332.31 to 332.44, or any practices prohibited in section 332.37, and any such court may issue temporary or permanent injunctions as the circumstances shall require. Such injunctive proceedings shall […]
332.395 COMMISSIONER’S POWER OVER INEFFECTIVE LICENSES AND REGISTRATIONS. If a license or registration lapses, is surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner of commerce may do either or both of the following: (1) institute a proceeding under section 45.027 within two years after the license or registration was last effective and enter a […]
332.40 INVESTIGATION, SUSPENSION, AND REVOCATION OF LICENSES OR REGISTRATIONS. Subdivision 1. Examination of licensee’s or registered individual collector’s records. The commissioner of commerce may make examinations of the collection records of a licensee or registered individual collector at a reasonable time and in a scope as is necessary to enforce the provisions of sections 332.31 […]
332.41 APPEALS. Appeal from a denial, suspension, revocation, or censure of a license or registration must be made according to chapter 14. History: 1969 c 766 s 11; 1973 c 720 s 54 subd 2; 1979 c 144 s 6; 1980 c 516 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 […]
332.42 REPORTS AND RECORDS. Subdivision 1. Verified financial statement. The commissioner of commerce may at any time require a licensee to submit a verified financial statement for examination by the commissioner to determine whether the licensee is financially responsible to carry on a collection business within the intents and purposes of sections 332.31 to 332.44. […]
332.43 DELINQUENT COLLECTION AGENCIES. Subdivision 1. Appointment of receiver. If the commissioner shall determine that a collection agency licensee is insolvent or has collected accounts but has failed to remit money due to any claimant within 45 days from the end of the month in which collection was made, or when the license of a […]
332.44 RULEMAKING POWER. The commissioner of commerce shall make and file in accordance with the provisions of chapter 14, all reasonable rules as shall be necessary for the administration of sections 332.31 to 332.44. History: 1969 c 766 s 14; 1973 c 720 s 54 subd 2; 1979 c 144 s 6; 1980 c 516 […]
