2003 Minnesota Statutes

     332.24 Prohibitions.  

    A licensee shall not: 

    (1) purchase from a creditor any obligation of a debtor; 

    (2) use, threaten to use, seek to have used or seek to have 
 threatened the use of any legal process, including but not 
 limited to garnishment and repossession of personal property, 
 against any debtor while the contract between the licensee and 
 the debtor remains executory; 

    (3) advertise or make any statement or representation with 
 regard to the rates, terms, or conditions of debt prorating 
 service which is false, misleading or deceptive; 

    (4) require as a condition of performing debt prorating 
 services nor shall the contract between the licensee and a 
 debtor require the purchase of any services, stock, insurance, 
 commodity or other property or any interest therein either by 
 the debtor or the licensee; 

    (5) compromise any debts unless the prior written approval 
 of the debtor has been obtained to such compromise and unless 
 such compromise shall inure solely to the benefit of the debtor; 

    (6) receive from any debtor as security or in payment of 
 any fee a promissory note or other promise to pay or any 
 mortgage or other security, whether as to real or personal 
 property; 

    (7) lend money or credit to any debtor if any interest or 
 fee is charged; 

    (8) take any confession of judgment or power of attorney to 
 confess judgment against the debtor or appear as the debtor in 
 any judicial proceedings; 

    (9) take, concurrent with the signing of the contract, or 
 as a part of the contract or as part of the application for the 
 contract, a release of any obligation required to be performed 
 on the part of the licensee; 

    (10) offer, pay or give any substantial cash fee, gift, 
 bonus, premium, reward or other compensation to any person, 
 other than an employee of the licensee for referring any 
 prospective customer to the licensee; 

    (11) receive any cash, fee, gift, bonus, premium, reward, 
 or other compensation from any person other than the debtor or a 
 person in the debtor's behalf in connection with activities as a 
 licensee; provided, however, that this paragraph shall not apply 
 to a licensee which is a bona fide nonprofit corporation, duly 
 organized under chapter 317A; 

    (12) enter into a contract with a debtor unless a thorough 
 written budget analysis indicates that the debtor can reasonably 
 meet the requirements of the financial adjustment plan and will 
 be benefited by the plan; 

    (13) in any way charge or purport to charge or provide any 
 debtor credit insurance in conjunction with any contract or 
 agreement involved in the financial adjustment plan.  

    Any violation of the prohibitions contained in this section 
 shall be cause for the suspension, revocation or refusal to 
 renew a license pursuant to section 332.20 and shall also 
 constitute a violation of the provisions of sections 332.12 to 
 332.29 to which the penalties prescribed in section 332.26 shall 
 attach.  In addition to such penalties any person attempting to 
 perform a debt prorating service in this state without 
 maintaining an office in this state shall be subject to a fine 
 not to exceed $10,000, as determined by the commissioner.  

    HIST: 1969 c 1120 s 13; 1971 c 441 s 9; 1986 c 444; 1989 c 304 
 s 137