Signed into law by President Ford in September of 1977, the Fair Debt Collection Practices Act (FDCPA) protects consumers against the abusive behavior used by third party debt collectors to collect delinquent debts.
The FDCPA also forbids debt collectors from making threats or implementing deceptive techniques to collect debts. Like many states, Minnesota quickly followed the FDCPA with the passage of a consumer protection law that regulates the activities of third party debt collectors.
The Minnesota Fair Debt Collection Practices Act (MFDCPA) strengthens many of the federal provisions that prevent abusive and threatening debt collector behavior.
If Reliance Recoveries engages in activities that violate either the FDCPA or MFDCPA, you have the right to speak with a lawyer to determine the best course of action.
What is the Debt Collection Statute of Limitations in Minnesota?
Minnesota has one of the least friendly debt collection laws in the United States when it comes to the statute of limitations. A third party debt collector has six years to win a judgment for an outstanding debt.
The six-year statutes of limitations clock starts ticking on the day of the last payment on a credit account or an acknowledgment of a debt. A debt collector has 10 years from the date of winning a judgment to pursue debt collection efforts.
Minnesota law allows debt collectors to renew judgments for another 10 years, which makes the statute of limitations for debt collection cases run as high as 26 years.
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Minnesota Law and Debt Collection Fees
Third party debt collectors are essentially debt buyers. Original creditors charge off credit accounts and sell the outstanding credit accounts to third party debt collectors for pennies on the dollar.
In addition to earning a huge profit per credit account, many debt collectors continue to add fees and interest charges. Minnesota permits debt collectors to continue to charge fees and interest, but only if the original credit contract specifically allows for the additional charges.
Garnishing Wages to Collect Unpaid Consumer Debt
The primary reason third party debt collectors seek judgments against consumers in Minnesota is because a judgment is the legal green light to garnish wages for the collection of unpaid consumer debts.
After earning a judgment, a debt collector goes through the proper legal channels to get a consumer’s employer to deduct a certain amount from each paycheck to pay off an outstanding debt.
In Minnesota, wage garnishment is up to 25% of a consumer’s disposable income or 40 times the federal minimum wage, whichever is the lesser amount.
Speak with an Experienced Lawyer
If Reliance Recoveries has violated one or more legal provisions written into the FDCPA or MFDCPA, you have the legal right to speak with an lawyer. A licensed Minnesota consumer protection law lawyer can help you win a claim for statutory and actual damages.
Additional Resources
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Reliance Recoveries or any other third-party collection agency, you may not be entitled to any compensation.