The State of Minnesota’s Department of Commerce has fined a collection operation $10,000 — but stayed $4,000 of the penalty — after the operation was accused of attempting to collect on amounts not expressly authorized by the agreement creating the debt and for failing to completely respond to the Department’s requests for information.
A copy of the consent order can be accessed by clicking here.
The consent order accuses the collector of violating Section 1692f of the Fair Debt Collection Practices Act and state law in Minnesota (the specific provision indicates that any violation of the FDCPA is a prohibited practice in the state). The consent order also indicates that the collector cooperated with the investigation, but failed to completely respond to the department’s requests for information. The order does not provide specifics about what information was asked for and not received.
Acknowledging it had a right to a formal hearing where it could present arguments to the Commissioner of the Department of Commerce, the collector waived its right to the hearing, and agreed to an informal disposition of the proceedings. The waiver of a hearing allowed the Commissioner to impose the civil penalty without any further proceedings or notice to the company.
The collection agency must pay $6,000 of the $10,000 fine. If the agency commits any further violation of the law within the next three years, the stayed portion of the penalty may be lifted. If the stay is lifted, the collection agency will have the right to request a hearing to challenge the factual basis for lifting the stay.
