MEMBER ALERT

MINNESOTA REVOKES TWO COLLECTORS' LICENSES
AND
 NEW MEXICO ENTERS CONSENT DECREE REQUIRING THE DISCLOSURE OF THE STATUS OF DEBTS PAST THE 
STATUTE OF LIMITATIONS

On August 27, 2008, the State of Minnesota, Department of Commerce entered two Consent Orders revoking the debt collector registrations of William Sobieck of Minnesota and Willmar Collection Service for failure to remit client funds and the use of client monies for personal expenses.

          In New Mexico, the Attorney General had sued Merchants Credit Guide for wrongfully collecting on past statute debt.  As part of the settlement, Merchants Credit Guide has agreed to disclose to consumers that the debt is past the statute of limitations. The lawsuit also alleged that the Merchants also did not have a collection license, in violation of the Collection Agency Licensing Act and the Unfair Trade Practices Act. 

          Under the New Mexico Consent Decree, Merchants has also agreed to stop collecting all debt that is unenforceable due to the running of the statute of limitation in New Mexico. Merchants also will not attempt to collect debts based on unwritten contracts that are more than four years old, or debts based on written contracts that are more than six years old.

          For a copy of the Minnesota Orders, the New Mexico Attorney General Press Release and the DBA International Paper on the Collection of Past Statute Debts please go to: www.dbainternational.org.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.