HF2564

HF2564 (Legislative Session 94 (2025-2026))

Lenders required to pause monthly payments on seized property, and lenders prohibited from reporting failure to make monthly payments on seized property.

Related bill: SF1797

AI Generated Summary

Purpose of the Bill

The bill aims to protect consumers who have had their property seized by law enforcement as a result of a crime. It ensures that victims do not face financial penalties during the period their property is held.

Main Provisions

Payment Suspension: Lenders or sellers are required to stop monthly payment requirements for victims if their property, like a cell phone or vehicle, is seized by law enforcement as part of a criminal investigation.
Proof Requirement: Victims must provide documentation from law enforcement to verify that their property has been seized and is in custody.
Resumption of Payments: Payment obligations can only resume once the property is returned to the victim.
Credit Reporting Prohibition: Lenders or sellers are prohibited from reporting victims as delinquent to collection agencies for failing to make payments on seized property during the period it is held by law enforcement.

Significant Changes to Existing Law

This bill introduces new legal requirements for lenders and sellers under Minnesota Statutes chapter 325G, specifically establishing protections for crime victims with seized property, which did not exist in previous legislation.

Relevant Terms

Consumer protection
Payment suspension
Seized property
Law enforcement custody
Collection agency reporting prohibition

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to the definition of a collection agency under section 332.31, subdivision 3, in the context of prohibiting lenders from reporting failure to make payments for seized property.",
      "modified": []
    },
    "citation": "332.31"
  }
]