How to Protect Against Debt Collection Harassment in Minnesota

Ideally, creditors will work with you to create a payment plan. If you fall behind with payments, creditors send the account to an in-house collection department or employ a third-party collection agency. Although valid debt is collectible, debt collectors must provide proof that the debt is legitimate and follow Minnesota and federal laws protecting consumers from unfair practices. Under Minnesota law, debt collection employees must apply for and be registered with the state to perform collection activities within the state.

Instructions

1

Report unfair or deceptive debt collectors to the Federal Trade Commission and the Minnesota Attorney General's Office. Debt collectors are prohibited from calling you before 8 a.m. or after 9 p.m., calling repeatedly in a short time frame, using deceptive practices or otherwise harassing you. Debt collectors may contact people you know in an attempt to locate you, but they cannot discuss the debt with anyone but you or your attorney.

2

Request validation of the debt and proof of your liability. Collectors must send a notice validating the amount owed and the original creditor's name within 5 days of first contact. However, disputing the debt stops collection actions for 30 days.

3

Ask the creditor for proof of the last action on the loan. Minnesota law places a statute of limitations of 6 years on most consumer debt. However, creditors will not volunteer the information. Debts beyond the statute of limitations remain valid, but a debt collector cannot sue a consumer beyond that point. The statute of limitations begins when the last action was taken on the account or when the loan became delinquent.

4

Stop collection calls. If a debt collector calls you at your job, they must stop if you tell them that your employer prohibits phone calls. In addition, consumers may stop collection calls completely by sending the collector a "no contact" notice. Once a creditor receives the notice, it cannot contact you again unless it is to notify you of further legal action. The "no contact" letter does not eliminate debt, and creditors may use other legal means to collect.

5

Respond to lawsuits promptly, as neglecting to obey a court summons may result in a judgment against you. However, providing proof of financial hardship or income exemptions to the court may result in a judgment in your favor. Debt collectors may garnish wages and bank accounts with a court order. Excluding income exemptions, up to 25 percent of your wages may be garnished for outstanding debt. Income exemptions include most government benefits.