Minnesota Debt Collection Laws: A Comprehensive Guide

Minnesota Debt Collection Laws: A Comprehensive Guide 1

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When it comes to dealing with debt, it’s crucial to be aware of the laws that protect consumers from unfair and abusive debt collection practices. In Minnesota, these laws are designed to provide balance and fairness in the process. You can also compare these two options if you’re in debt bankruptcy vs debt settlement. This article will delve into the specifics of Minnesota debt collection laws, providing you with a comprehensive understanding of your rights and protections.


The Fair Debt Collection Practices Act (FDCPA)

At the federal level, the Fair Debt Collection Practices Act (FDCPA) provides the groundwork for consumer protection against abusive debt collection practices. It prohibits debt collectors from using deceptive, unfair, or abusive practices to collect debts. While this federal law sets the minimum standard for all states, Minnesota has additional laws that provide even more protections to consumers.

Minnesota Fair Debt Collection Practices Act

The Minnesota Fair Debt Collection Practices Act mirrors the FDCPA but applies to all debt collectors in Minnesota, including original creditors who are collecting their own debts, which the federal law does not cover. Some of the key provisions of the Minnesota law are:

  1. Communication Restrictions: Debt collectors cannot contact you at inconvenient times or places. They cannot call you before 8 a.m. or after 9 p.m., unless you agree to it. They also cannot contact you at work if they know your employer disapproves.
  2. Harassment Prohibition: Debt collectors cannot harass, oppress, or abuse anyone. They cannot threaten violence, use obscene language, or repeatedly use the telephone to annoy someone.
  3. False Statements: Debt collectors cannot lie or make false representations. They cannot falsely claim to be attorneys or government representatives, misrepresent the amount owed, or indicate that nonpayment will result in arrest, wage garnishment, or legal action when such action is not lawful or intended.
  4. Unfair Practices: Debt collectors cannot engage in unfair practices. They cannot collect any amount not authorized by the agreement or by law, deposit a post-dated check prematurely, or use deception to make you accept collect calls or pay for telegrams.
Minnesota Debt Collection Laws: A Comprehensive Guide

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Statute of Limitations on Debt in Minnesota

The statute of limitations is a law that sets the maximum period that one can wait before filing a lawsuit. In Minnesota, the statute of limitations on debt varies depending on the type of debt:

  1. Written Contracts: For debts that come from written agreements, such as loans or leases, the statute of limitations is six years.
  2. Oral Contracts: For debts that come from verbal agreements, the statute of limitations is also six years.
  3. Promissory Notes: For debts where the debtor promises in writing to pay a certain sum to the creditor at a specific time, the statute of limitations is six years.

Once the statute of limitations expires, a creditor cannot sue a debtor to recover the debt. However, the debt does not disappear, and the creditor can still attempt to collect the debt.

Your Rights Under Minnesota Law

If a debt collector violates the Minnesota Fair Debt Collection Practices Act, you have the right to sue them in court. You can potentially recover money for damages you suffered, plus an additional amount of up to $1,000. You can also recover court costs and attorney fees.

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Knowing and understanding your rights under Minnesota debt collection laws can provide you with the necessary tools to deal with debt collectors effectively. Remember, while these laws exist to protect you, managing debt responsibly is always the best course of action. If you’re struggling with debt, consider seeking help from a credit counselor or financial advisor. If a debt collector violates your rights, consult with an attorney to explore your legal options.


Minnesota Debt Collection Laws: A Comprehensive Guide 2

What is the statute of limitations for debts in Minnesota?

In Minnesota, the statute of limitations for debts is generally six years. This means that a creditor has six years from the date the debt became overdue to sue the debtor for collection.

What are the legal actions a debt collector can take in Minnesota?

A debt collector can sue a debtor in court. If the court issues a judgment, the collector can then garnish wages or seize property. However, certain assets, such as a portion of the debtor’s wages, public benefits, and some personal property, may be exempt from seizure.

Are there any restrictions on when and how often a debt collector can contact a debtor in Minnesota

Yes, under the Fair Debt Collection Practices Act (FDCPA), a debt collector cannot call a debtor before 8 a.m. or after 9 p.m., unless the debtor agrees to it. Additionally, a collector cannot contact a debtor at work if they’re told (orally or in writing) that the debtor is not allowed to get calls there.

What rights does a debtor have under Minnesota debt collection laws?

Debtors have the right to request validation of the debt, dispute the debt, and limit communication with the debt collector. They also have the right to sue a collector in state or federal court within one year from the date the law was violated.

Can a debt collector garnish a debtor’s wages in Minnesota?

Yes, if the court issues a judgment against the debtor, the debt collector can garnish the debtor’s wages. However, certain amounts and types of income, including Social Security and veterans’ benefits, are exempt.

What is the maximum interest rate allowed on debts in Minnesota?

The maximum legal interest rate on debts in Minnesota is 8% per year unless a different rate has been agreed upon in writing.

Can a debt collector harass a debtor in Minnesota?

No, under the FDCPA, it is illegal for debt collectors to harass, oppress, or abuse any person while attempting to collect a debt.

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What should a debtor do if they believe their rights have been violated under Minnesota debt collection laws?

If a debtor believes their rights have been violated, they should contact the Minnesota Attorney General’s Office, or they may also choose to consult with a private attorney.

Can debt collectors contact a debtor’s family or friends in Minnesota?

Debt collectors can contact others to find out the debtor’s address, home phone number, and place of work. However, they’re generally not allowed to discuss the debtor’s debt with anyone other than the debtor, their spouse, or their attorney.

Are there any debts that are exempt from the statute of limitations in Minnesota?

Yes, some debts are not subject to the statute of limitations, including child support arrears, student loans guaranteed by the federal government, and unpaid taxes.


  • Assignee: A person or entity to whom a debt or claim has been transferred.
  • Bankruptcy: A legal procedure for dealing with debt problems of individuals and businesses.
  • Collection Agency: A company hired by lenders to recover funds that are past due or accounts that are in default.
  • Consumer: An individual who purchases goods or services, including credit, for personal, family, or household purposes.
  • Creditor: An individual or business (such as a bank) who is owed money.
  • Debt: Money owed by one party, the debtor, to a second party, the creditor.
  • Debt Collection: The process of pursuing payments of debts owed by individuals or businesses.
  • Debtor: An individual or business who owes money to another party, known as the creditor.
  • Default: Failure to repay a loan according to the terms agreed to in the promissory note.
  • Fair Debt Collection Practices Act (FDCPA): A federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.
  • Garnishment: A legal process that allows a creditor to remove funds from your bank account or paycheck due to unpaid debts.
  • Judgment: A court decision stating that you owe a certain amount of money.
  • Minnesota Statutes: The laws of the state of Minnesota.
  • Repossession: The process of a bank or other lender taking ownership of property or goods used as collateral in a loan agreement when the debtor fails to meet the terms of the agreement.
  • Statute of Limitations: The maximum time after an event within which legal proceedings may be initiated.
  • Third-Party Collectors: A business that collects debts on behalf of a company.
  • Unsecured Debt: Debt that is not backed by an underlying asset or collateral.
  • Validation of Debts: A debtor’s right to challenge a debt and/or receive written verification from a collector.
  • Wage Garnishment: A legal or equitable procedure through which some portion of a person’s earnings is required to be withheld by an employer for the payment of a debt.
  • Written Notice: A document from a creditor or collection agency stating the amount of debt owed, the name of the creditor to whom the debt is owed, and information on how to dispute the debt.

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