Debt Collectors

A collection agency collects debts for others, a debt buyer buys charged off debts to collect them, and a collector works under the authority of either. Each must be licensed or registered with the commissioner of commerce, and doing the business without a license or registration is a misdemeanor. None of them may engage in any of these:

• §Minn. Stat. 332.31
• §Minn. Stat. 332.33

• Threatening garnishment or a suit by a particular lawyer unless that lawyer has actually been retained.
• Using a lawyer's stationery, forms only lawyers may prepare, or papers made to look like court process.
• Giving legal advice, or claiming to be competent to.
• Publishing a list of debtors except for credit reporting, using shame cards, or threatening to advertise the debt for sale.
• Implying a connection to any government department.
• Calling with a recorded autodialed message after the debtor has said to stop.
• Asking a neighbor or other third party to have a debtor with a listed number call back, unless that person lives with the debtor or the debtor authorized it.
• Suggesting that emergency health care will be withheld.
• Collecting any interest, fee or charge not authorized by the agreement that created the debt or otherwise permitted by law.
• Taking cash without giving an original receipt, failing to give the agency's full licensed name, or failing to return an overpayment.
• Suing on a debt after the limitations period has run.
• Violating the federal Fair Debt Collection Practices Act.

• §Minn. Stat. 332.37

The first contact by mail with a Minnesota debtor carries, in type at least as large as any other in the notice, the statement that the collection agency or debt buyer is licensed by the Minnesota Department of Commerce.

• §Minn. Stat. 332.37

The commissioner of commerce may examine a licensee's collection records and, after notice and a hearing, suspend or revoke a license or registration for a violation.

• §Minn. Stat. 332.40

These sections reach businesses collecting for others, debt buyers, and the collectors working for them. The time limits on old debts are on their own page.

• §Minn. Stat. 332.31