A pair of new enforcement actions from the Minnesota Department of Commerce has resulted in more than $55,000 in civil penalties against two collection operations, though the respondents will pay only a small fraction of that amount. One company was accused of collecting without a license in the state and the other failed to provide contact information for nonprofit organizations in the state that provide credit counseling services to consumers.
Westhill Exchange: Unlicensed activity leads to $50,000 stayed penalty
The first action involves Westhill Exchange, which the Department accused of operating a collection agency in Minnesota without a license. According to the consent order, the company waived its right to a hearing and agreed to a $50,000 civil penalty, all of which was stayed provided it complies with all applicable laws going forward.
Key terms of the order include:
- A permanent bar from applying for or obtaining a Minnesota collection agency license.
- A requirement to cease and desist from all violations of Minnesota laws related to debt collection.
- Payment of $393.75 in investigative costs.
If Westhill Exchange violates any relevant law or rule, the Department may lift the stay and impose the full $50,000 penalty.
Tek-Collect: Missing Minnesota nonprofit counseling disclosures
The second enforcement action targets Tek-Collect, a licensed agency accused of failing to provide Minnesota debtors with required contact information for in-state nonprofit credit counseling organizations, as mandated by state law.
Under the consent order, Tek-Collect:
- Must pay $1,000 out of a $5,000 civil penalty. The remaining $4,000 has been stayed.
- Must comply with Minnesota’s disclosure and compliance rules to avoid activation of the stayed portion.
If the stay is not lifted by November 6, 2028, the remaining $4,000 will be vacated.
Read one consent order. Read the other
