Minnesota Legislature to Target Debt Buyers
February 23rd, 2010. Published under Business Scams, Fraud. No Comments.
From Inside ARM , the Minnesota state legislature introduced legislation that would put debt buyers under the same laws and debt collectors and increase fines for violations. A bill introduced last week in the Minnesota House of Representatives — and its companion bill in the Senate — specifically target debt buyers, placing new guidelines on the collection activity of purchased debt and the verification process used by accounts receivable management firms. The bills, HF2996 proposed by Rep. Joe Mullery of Minneapolis and SF2689 authored by Sen. Ron Latz of St. Louis Park, would require debt buyers filing collection lawsuits to produce an assortment of documents proving that borrowers being sued actually owe the unpaid debts. ~ Inside ARM Debt Buyers (Junk Debt) often pimp out their collections to hungry cash-strapped debt collection law firms and questionable debt collection companies to collect debts. Often these third party law firms and collection companies violate a consumers rights. Debt buyers are rarely named as defendants in consumer civil complaints. It is time for all states to enact similar legislation and further regulate the debt collection industry since the Federal Trade Commission (FTC) seems to overlook all but the most egregious violators. State budgets right now are tight and regulating or enforcement of the collection industry would help boost cash flow for states. This type of regulation and enforcement is the only way