M.S.A.
§ 332.52
332.52.
Definitions
M.S.A. § 332.52
Minnesota
Statutes Annotated Currentness
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit
Services, Debt Prorating
332.52. Definitions
Subdivision 1.
Applicability. The definitions in this section apply to sections 332.52 to 332.60.
Subd. 2. Buyer. "Buyer" means
any individual who is solicited to purchase or who purchases the services of a credit
services organization.
Subd. 3. Credit services organization. (a) "Credit services organization" means any person that, with respect to
the extension of credit by others, sells, provides, performs, or represents
that the person will sell, provide, or perform, in return for the payment of
money or other valuable consideration, any of the following
services:
1) improve a buyer's credit record, history, or rating;
(2) obtain an extension of credit for a buyer; or
(3) provide advice or assistance to a buyer with regard to either
clause (1) or (2).
(b) "Credit
services organization" does not include:
(1) any person
authorized to make loans or extensions of credit under the laws of this state
or the United States, if the person is subject to regulation and supervision by
this state or the United States or a lender approved by the United States
Secretary of Housing and Urban Development for participation in any
mortgage insurance program under the National Housing Act; [FN1]
(2) any bank, savings
bank, or savings and loan institution whose deposits or accounts are eligible
for insurance by the Federal Deposit Insurance Corporation or a subsidiary of
the bank, savings bank, or savings and loan institution;
(3) any credit union,
federal credit union, or out-of-state credit union doing business in this
state;
(4) any nonprofit
organization exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31, 1990; [FN2]
(5) any person licensed
as a prorating agency under the laws of this state if the person is acting
within the course and scope of that license;
(6) any person licensed
as a real estate broker by this state if the person is acting within the course
and scope of that license;
(7) any person licensed
as a collection agency under the laws of this state if the person is acting
within the course and scope of that license;
(8) any person licensed
to practice law in this state if the person renders services within the course
and scope of practice as an attorney;
(9) any broker-dealer
registered with the Securities and Exchange Commission or the Commodity Futures
Trading Commission if the broker-dealer is acting within the course and scope
of that regulation; or
(10) any consumer
reporting agency as defined in the federal Fair Credit Reporting
Act, United States Code, title
15, sections 1681 to 1681t, as
amended through December 31, 1990.
Subd. 4. Extension of credit. "Extension of credit" means the right, offered or granted primarily
for personal, family, or household purposes, to defer payment of debt or to
incur debt and defer its payment.
M.S.A. § 332.53
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.53. Waiver of rights
Any waiver by a buyer of sections 332.52 to 332.60 is void.
Any attempt by a credit services organization to have a buyer waive rights
provided under sections 332.52 to 332.60 is a
violation of sections 332.52 to 332.60. In any
proceeding involving sections 332.52 to 332.60, the
burden of proving an exemption or an exception from a definition is upon the
person claiming it.
M.S.A. § 332.54
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.54. Registration
Subdivision 1. Filing. It is unlawful for any credit services organization to offer,
advertise, or execute or cause to be executed by a consumer any contract in
this state unless the credit services organization at the time of the offer,
advertisement, sale, or execution of a contract has been properly registered
with the commissioner.
Subd. 2. Disclosure. The registration must contain the following information:
(1) the name and address
of the credit services organization;
(2) the name and address
of the registered agent authorized to accept service of process on behalf of
the credit services organization;
(3) the name and address
of any person who directly or indirectly owns or controls a ten percent or
greater interest in the credit services organization;
(4) the name and address
of the surety company that issued the bond required under section 332.55;
and
(5) full disclosure of
any litigation or unresolved complaint filed within the preceding five years
with the state, any other state, or the United States relating to the operation
of the credit services organization, or a notarized statement that there has
been no litigation or unresolved complaint filed within the preceding five
years with the state, any other state, or the United States relating to the
operation of the credit services organization.
Subd.
3. Additional information. The credit services
organization must attach to the registration statement a copy of the contract
which the credit services organization intends to execute with its consumers
and evidence of the required bond.
Subd. 4. Update of information. The credit services organization must update the registration
statement required under this section not later than 90 days after the date
from which a change in the information required in the statement occurs.
Subd. 5. Buyer inspection. Each
credit services organization registering under this section must maintain a
copy of the registration statement in its files. The credit services
organization must allow a buyer to inspect the registration statement on
request.
Subd. 6. Term. Registration issued or
renewed by the commissioner of commerce under sections 332.52 to 332.60 expires
on June 30 of each year.
Subd. 7. Fees. The fee for a credit
services organization's registration is $100 for issuance or renewal for each
location of business.
M.S.A. § 332.55
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.55. Bond
A credit services organization must submit to the commissioner at
the time of registration, an annual surety bond of $10,000, expiring on June 30
of each year, by an insurance company which is authorized by the state of
M.S.A. § 332.56
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.56. Prohibited acts
Subdivision 1. Requirements; prohibitions. A credit services organization, its salespersons, agents, and
representatives, and independent contractors who sell or attempt to sell the
services of a credit services organization may not do any of the following:
(1) charge or receive
any money or other valuable consideration prior to full and complete
performance of the services the credit services organization has agreed to
perform for the buyer;
(2) charge or receive
any money or other valuable consideration solely for referral of the buyer to a
retail seller who will or may extend credit to the buyer if the credit that is
or will be extended to the buyer is upon substantially the same terms as those
available to the general public;
(3) make, counsel, or
advise any buyer to make, any statement with respect to a buyer's credit
worthiness, credit standing, or credit capacity that is untrue or misleading or
that should be known by the exercise of reasonable care to be untrue or
misleading to a credit reporting agency or to any person who has extended
credit to a buyer or to whom a buyer is applying for an extension of credit; or
(4) make or use any
untrue or misleading representations in the offer or sale of the services of a
credit services organization or engage, directly or indirectly, in any act,
practice, or course of business that operates or would operate as fraud or
deception upon any person in connection with the offer or sale of the services
of a credit services organization.
Subd. 2. Salespersons; agents. If a credit services organization is in compliance with
subdivision 1, clause (1), the salesperson, agent, or representative who sells
the services of that organization is not required to obtain a surety bond.
M.S.A.
§ 332.57
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.57. Disclosure statement
Subdivision 1. Requirement. Before the execution of a contract or agreement between the buyer
and a credit services organization or before the receipt by the credit services
organization of any money or other valuable consideration, whichever occurs
first, the credit services organization shall provide the buyer with a
statement in writing containing all of the information required by subdivision
2. The credit services organization shall maintain on file for a period of two
years an exact copy of the statement, personally signed by the buyer,
acknowledging receipt of a copy of the statement.
Subd. 2. Contents. The disclosure statement required under subdivision 1 must be
printed in boldface and in at least 10-point type and must include the
following statement:
"CONSUMER
CREDIT FILE RIGHTS UNDER
You have a right to obtain a copy of your credit report from a
credit bureau. You may be charged a reasonable fee. There is no fee, however,
if you have been turned down for credit, employment, insurance, or a rental
dwelling because of information in your credit report within the preceding 30
days. The credit bureau must provide someone to help you interpret the
information in your credit file.
You have a right to dispute inaccurate information by contacting
the credit bureau directly. However, neither you nor any "credit
repair" company or credit services organization has the right to have
accurate, current, and verifiable information removed from your credit bureau
report. Under the federal Fair Credit Reporting Act, [FN1] the credit bureau must remove
accurate, negative information from your report only if it is over seven years
old. Bankruptcy can be reported for ten years.
You have a right to sue a credit repair company that violates
Credit bureaus are required to follow reasonable procedures to
ensure that creditors report information accurately. However, mistakes may
occur.
You may, on your own, notify a credit bureau in writing that you
dispute the accuracy of information in your credit file. The credit bureau must
then reinvestigate and modify or remove inaccurate information. The credit
bureau may not charge any fee for this service. Any pertinent information and
copies of any documents you have concerning an error should be given to the
credit bureau.
If reinvestigation does not resolve the dispute to your
satisfaction, you may send a brief statement to the credit bureau to keep in
your file, explaining why you think the record is inaccurate. The credit bureau
must include your statement about disputed information with any reports it
issues about you."
M.S.A. § 332.58
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.58. Contract
Subdivision 1. Requirements. Each contract between the buyer and a credit services
organization for the purchase of the services of the credit services
organization must be in writing, dated, and signed by the buyer and must
include the following:
(1) a conspicuous statement in boldface type, in immediate
proximity to the space reserved for the signature of the buyer, as follows:
"If you, the buyer, have been denied credit within the last 30 days, you
may obtain a free copy of the consumer credit report from the consumer
reporting agency. You also have the right to dispute inaccurate information in
a report. You may cancel this contract at any time prior to midnight of the
fifth day after the date of the transaction. See the attached notice of
cancellation form for an explanation of this right";
(2) the terms and conditions of payment, including the total of
all payments to be made by the buyer, whether to the credit services
organization or to some other person;
(3) a full and detailed description of the services to be
performed by the credit services organization for the buyer, including all
guarantees and all promises of full or partial refunds, and the estimated date
by which the services are to be performed or the estimated length of time for
performing the services;
(4) the credit services organization's principal business address
and the name and address of its agent in this state authorized to receive service
of process; and
(5) with respect to the
previous calendar year or the time period the credit services organization has
been in business, whichever is shorter, the percentage of the credit services
organization's customers for whom the credit services organization has fully
and completely performed the services the credit services organization agreed
to perform for the buyer.
Subd. 2. Notice of cancellation. The contract must be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation" that must be attached
to the contract, is easily detachable, and contains in boldface type the
following statement written in the same language as used in the contract:
"Notice of Cancellation
You may cancel this contract without any penalty or obligation
within five days from the date the contract is signed.
If you cancel this contract, any payment made by you under this
contract will be returned within ten days following receipt by the seller of
your cancellation notice.
To cancel this contract, mail or deliver a signed dated copy of
this cancellation notice, or any other written notice to ...............(name
of seller)............... at ..........(address of seller)..........,
.......... (place of business).......... not later than midnight ..........
(date)..........
I hereby cancel this transaction,
......(date)......
...(purchaser's signature)..."
Subd. 3. Buyer's copy. The credit services organization shall give to the buyer a copy
of the completed contract and all other documents the credit services
organization requires the buyer to sign at the time that they are signed.
M.S.A.
§ 332.59
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.59. Violations
Any person who violates sections 332.52 to 332.58 is
guilty of a misdemeanor. A violation of sections 332.52 to 332.58 is a
violation of section 325F.69,
subdivision 1, and the provisions of section 8.31 apply. Sections 332.52 to 332.58 do not
limit or restrict the right of any person to pursue any appropriate remedy for
a violation of sections 332.52 to 332.58. The
provisions of section 45.027 apply to the enforcement of sections 332.52 to 332.58.
M.S.A.
§ 332.60
Trade Regulations, Consumer Protection (Ch. 324-338)
Chapter
332. Collection, Credit Services, Debt Prorating
332.60. Damages
A buyer suffering damages as a result of a violation of sections 332.52 to 332.58 by a
credit services organization may bring an action for recovery of damages.
Judgment must be entered for actual damages, but in no case shall the amount be
less than the amount paid by the buyer to the credit services organization,
plus reasonable attorney fees and costs. An award may also be entered for
punitive damages. The remedies provided under sections 332.52 to 332.60 are in addition to any other procedures or remedies for any violation
or conduct otherwise provided by law.
Case Law
I identified no significant cases construing this statutes.