The Temporary Commissioner of the Minnesota Department of Commerce has fined a collection agency $5,000 for operating without a license, according to the terms of a consent order that was entered into late last month.
The company, Asset Resources, Inc., waived its right to a formal hearing. Grace Arnold, the Temporary Commissioner, stayed $4,000 of the $5,000 fine, ordering the agency to pay $1,000. Exactly why $4,000 of the fine was stayed was not mentioned in the consent order. The stay on the remaining $4,000 balance would be lifted if the agency is found to have committed any other violations of a rule or law for which the Department of Commerce has authority to regulate. If the stay is not lifted before Oct. 12, 2023, the stayed portion of the fine will be vacated. The fine can not be discharged as part of a bankruptcy proceeding, according to the terms of the consent order. If the Commissioner seeks to lift the stay, the agency can request a hearing to challenge the factual basis for lifting the stay, but may not challenge the amount of the stayed penalty.
Specific details of what the agency did — beyond the mention that it engaged in unlicensed collection agency activity in violation of Minnesota law — were not included in the consent order, a copy of which can be accessed by clicking here.
Along with agreeing to cease and desist from violating and laws or rules related to the duties and responsibilities of the Department of Commerce, the agency is also responsible for paying $40 in investigative costs.
