Minnesota Establishes Licensing Requirement for Debt Buyers

Troutman Pepper
Contact

Troutman Pepper

Earlier this summer, Minnesota extended many of its collection agency requirements to debt buyers through the enactment of H. F. No. 6. As of January 1, 2022, debt buyers will need to hold a collection agency license or have a licensing application filed with the Minnesota Department of Commerce (Department) in order to “engage[] in the purchase of any charged-off account, bill, or other indebtedness for collection purposes, whether the business collects the account, bill, or other indebtedness, hires a third party for collection, or hires an attorney for litigation related to the collection.” Information on how to register for a Minnesota collection agency license can be accessed here.

With some exceptions, debt buyers holding a collection agency license will need to ensure their operations conform to the same legal requirements applicable to collection agencies.

As part of the above change, certain companies qualifying as affiliates may operate under one license so long as the licensee files an “Affiliated Company” form, which lists the affiliates that will operate under the license.

To help explain the new requirements and how they impact debt buyers, the Department has issued a Debt Buyer FAQ. Debt buyers conducting business in Minnesota are encouraged to review the changes to assess the impact to their operations and compliance strategies.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Troutman Pepper | Attorney Advertising

Written by:

Troutman Pepper
Contact
more
less

Troutman Pepper on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.