Minnesota Statutes Sections 332.31 to 332.45 focus on Minnesota debt settlement and how consumers should handle debt collection agencies. Minnesota law closely resembles federal Fair Debt Collection Practices Act (FDCPA) which include rules such as:
- Collectors cannot trick you into paying for collect calls or telegrams
- Debt collectors cannot threaten and misrepresent who they are or what their company does
- Collectors cannot send correspondence in postcard form and can only display the agency’s name and address on the envelope
- You cannot be charged additional fees from a collector for your debt
- Collectors cannot publish or post your name
- If you are being represented by an attorney, the collector or agency must work through that attorney and not you
- You can only be contacted by a collector between 8am and 9pm (unless you’ve agreed to another time)
- You have up to 30 days to dispute a debt--once the written dispute is set in motion the collector cannot contact you until it provides you with documentation
Consumers in Minnesota are not permitted to sue debt collection agencies, however Minnesota consumers can sue under the federal Fair Debt Collection Practices Act (FDCPA) if victimized by a debt collector. If the collector has violated the law, Minnesota consumers can receive up to $1,000 in expenses.
Minnesota Statue of Limitations (SOL)
Minnesota has a six-year statue of limitation (SOL) on open accounts such as credit cards, meaning that the creditor can contact you for up to six years. For written contracts creditors can also pursue you for up to six years. Consumers can consider Minnesota debt settlement during the time the account remains open.
Minnesota debt relief means that the law protects certain areas of wage garnishment. Areas that are exempt include:
- Social Security is protected under federal law
- Pensions and retirement benefits--Minnesota protects public employee pensions and generally retirement benefits including IRAs
- Public benefits/assistance-- protection for workers’ compensation, unemployment, veteran benefits, aid to families with dependent children and disability
- Minnesota protects certain annuities and insurance policies including fraternal society benefits, life insurance and benefits to the insured’s child or spouse between $20,000 and $5,000 if a dependent. Additionally exempt are disability and accident benefits, police, fire or beneficiary association benefits
Minnesota Credit Card Debt Relief Act of 2010
The Credit Card Debt Relief Act of 2010 has streamlined the methods for repaying debt and regulated how collectors work with debtors. The Act has impacted debt relief collections several ways:
- The number of fraudulent or weak performing credit card companies are gone
- Reduces the chances of falling victim to fraudulent debt settlement companies due to new Federal Trade Commission (FTC) reforms
- Increased, open communication from creditors--more information is provided to help you eliminate your loans
- Debt settlement companies cannot request upfront fees from clients