HF2564

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