If you are a Minnesota licensed debt collector, you need to be aware of the Department of Commerce's implementation of Minnesota's new law, effective August 1, 2012.
The law has been issued to clarify the state's collector background screening requirements and restrictions from hiring representatives with certain backgrounds. Please note:
- The initial background screening prior to submitting the collector's initial registration must include the following:
- a national criminal history record search;
- an attorney licensing search to determine if the proposed representative has even been barred to practice as an attorney;
- a county criminal search for all counties in which the collector resided in the past 5 years.
- A renewal background screening must be performed each year prior to the renewal of the collector's license.
- The renewal screening must be completed no more than 60 days before the license expiration or renewal date and include the following:
- a national criminal history record search; and
- a country criminal history search for all counties in which the collector resided in the preceding year.
- The renewal screening is not required if the collector's initial background screening occurred within the preceding 12 months.
- A collector is disqualified from being a Minnesota debt collector if, within the past 5 years, the proposed or current representative has:
- been convicted of any felony;
- been convicted of a misdemeanor or gross misdemeanor involving fraud, identity theft, or any financial crime;
- incurred a civil judgment for failure to account to a client or customer for money or property collected by the representative; or
- had a license to practice law revoked or involuntarily suspended.
- As previously, any debt collection representative that is discharged for violating Minnesota law must be reported to the Minnesota Department of Commerce, with the reasons for the separation within 10 days of the termination.
- The penalties for violating the current and soon to be amended law are up to $10,000 per violation.
Please do not hesitate to contact us if you have any questions or need further information regarding the existing or new requirements.► Back to News & Resources