Minnesota Legislature
SF 1888
as introduced - 87th Legislature (2011 - 2012) Posted on 02/29/2012 04:03pm
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A bill for an act
relating to debt collectors; amending procedures for licensure of debt collection
agencies and registration of individual debt collectors; amending Minnesota
Statutes 2010, sections 332.33, subdivisions 4, 7, 8; 332.35; 332.40, subdivision
1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 332.33, subdivision 4, is amended to read:
Subd. 4.
Investigations.
The commissioner may require financial statements
and references of all applicants for a new text begin collection agency new text end license deleted text begin or registrationdeleted text end as the
commissioner considers necessary. The commissioner may make or cause to be made an
independent investigation concerning the applicant's reputation, integrity, competence,
and net worth, at the expense of the applicant for the initial investigation, not to exceed
$500, and for that purpose may require a deposit against the cost of the investigation as the
commissioner considers adequate. The investigation may cover all managerial personnel
employed by or associated with the applicant.
Sec. 2.
Minnesota Statutes 2010, section 332.33, subdivision 7, is amended to read:
Subd. 7.
Notice.
A licensed collection agency deleted text begin or registered individual collectordeleted text end
must give the commissioner written notice of a change in deleted text begin personal name,deleted text end company
name, address, or ownership not later than 15 days after the change occurs.new text begin A registered
individual collector must give written notice of a change of address or name at annual
registration renewal.
new text end
Sec. 3.
Minnesota Statutes 2010, section 332.33, subdivision 8, is amended to read:
Subd. 8.
Screening process requirement.
Each licensed collection agency must
establish procedures to follow when screening an individual collector applicant prior
to submitting an applicant to the commissioner for new text begin initial new text end registrationnew text begin and at renewalnew text end .new text begin
The screening process for initial registration of an individual collector shall consist of a
criminal history record check and a statewide county search through a vendor that is a
member of the National Association of Professional Background Screeners for all states
of residence of the applicant within the five years immediately preceding the initial
registration, to determine whether the applicant is eligible to be registered under section
332.35. Screening for renewal of individual collector registration shall consist of a public
records search with the Bureau of Criminal Apprehension or equivalent. Screening for
renewal of individual collector registrations shall take place no more than 60 days before
license expiration or renewal date.new text end The commissioner may review the procedures to
ensure the integrity of the screening process. Failure new text begin by a licensed collection agency new text end to
establish these procedures is subject to action under section 332.40.
Sec. 4.
Minnesota Statutes 2010, section 332.35, is amended to read:
332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION.
No registration shall be accepted for, and no license shall be issued to, any person,
firm, corporation or association who or which, or any of the officers of which have, within
the past five yearsdeleted text begin ,deleted text end new text begin :
new text end
new text begin (1)new text end been convicted deleted text begin indeleted text end new text begin ofnew text end any deleted text begin court of fraud or anydeleted text end felony deleted text begin or have been convicted
of or had judgment entered against them in any court for failure to account to a client
or customer for money or property collected by them for the client or customer. No
registration shall be accepted for, and no license shall be issued to, any attorney whose
license to practice law has been suspended or revoked, for a period of five years after
the date of such suspension or revocation.deleted text end new text begin ;
new text end
new text begin
(2) been convicted of any misdemeanor or gross misdemeanor involving any
financial crime;
new text end
new text begin
(3) been unable to certify that they have no civil judgments against them for failure
to account to a client or customer for money or property collected by them for the client or
customer. A civil judgment does not disqualify an applicant for registration under this
section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for
failure to account to a client or customer for money or property; or
new text end
new text begin
(4) had a license to practice law revoked or suspended for cause.
new text end
Sec. 5.
Minnesota Statutes 2010, section 332.40, subdivision 1, is amended to read:
Subdivision 1.
Examination of licensee's or registered individual collector's
records.
new text begin (a) new text end The commissioner of commerce may make examinations of the collection
records of a licensee or registered individual collector at a reasonable time and in a scope
as is necessary to enforce the provisions of sections 332.31 to 332.45, and for that purpose
the commissioner shall have free access to the books and records of a licensee or registered
individual collector relating thereto. If a licensee or registered individual collector violates
any provision of sections 332.31 to 332.45, or any administrative rules issued pursuant
to sections 332.31 to 332.45, fails to maintain its financial condition sufficient to qualify
for licensure or registration on an original application, or, fails to maintain its registration
or comply with all of the requirements of chapter 303, the commissioner may, after
notice and hearing in accordance with the provisions of the laws of this state governing
proceedings before administrative agencies, revoke a license or registration, or suspend a
license or registration for a period as the commissioner deems proper.
new text begin
(b) If a licensee or registered individual collector allegedly violates any provision of
sections 332.31 to 332.3351, 332.355, and 332.38 to 332.45, or administrative rules for
any of those sections, the commissioner shall notify the licensee or individual registered
collector of violations. The licensee or individual registered collector shall have 30 days
to address alleged violations without financial obligation or penalty.
new text end