The Minnesota Department of Commerce has assessed a $10,000 fine against a creditor — but stayed $2,500 of the penalty — for engaging in unlicensed debt collection activity in violation of state law.
A copy of the consent order with CreditNinja can be accessed by clicking here.
The Departments Consent Orders are usually very short on details and this one is no different. Other than mentioning that the responded violated Minnesota state law 332.33(1), the consent order provides no other information regarding what the company did or how the state found out about it.
Rather than go through the process of a formal hearing, the respondent agreed to this informal disposition without a hearing.
The respondent was ordered to pay a civil penalty in the amount of $10,000 to the State of Minnesota, but the commissioner stayed $2,500 of the penalty for undisclosed reasons. The responded therefore needed to pay $7,500 to settle its portion of the order. The consent order does indicate that if the respondent commits any further violations of the law, the stayed portion of the penalty may be lifted. If the Commissioner of the Department of Commerce seeks to lift the stay, the respondent will have the opportunity to request a hearing to challenge the factual basis for lifting the stay, but may not challenge the amount of the stayed penalty. If the stay has not been lifted by August 8, 20206, it will be vacated, according to the order.
