HF 2564

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/20/2025 03:02 p.m.

A bill for an act
relating to consumer protection; requiring lenders to pause monthly payments on
seized property; prohibiting lenders from reporting failure to make monthly
payments on seized property; proposing coding for new law in Minnesota Statutes,
chapter 325G.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325G.221] VICTIM PAYMENT SUSPENSION.
new text end

new text begin Subdivision 1. new text end

new text begin Victim payment suspension. new text end

new text begin (a) A seller or lender must suspend a
victim's recurring billing requirement when a cell phone, vehicle, or other property associated
with the bill has been seized as a result of the crime.
new text end

new text begin (b) The victim must provide to the seller or lender documentation that was provided to
the victim by law enforcement to verify the property was seized as evidence and is in the
custody of law enforcement.
new text end

new text begin (c) A seller or lender must only resume a recurring bill requirement when the seized
property has been returned to the victim.
new text end

new text begin Subd. 2. new text end

new text begin Reporting failure to pay. new text end

new text begin A seller or lender must not report to a collection
agency, as defined under section 332.31, subdivision 3, that a victim has failed to make
payments on property for the duration of time that the property is seized by law enforcement.
new text end