Bill collectors would be required to get a court order before they could freeze a debtor’s bank accounts or wages under legislation proposed Tuesday by Minnesota Attorney General Mike Hatch.
Under current Minnesota law, creditors can freeze or garnish a debtor’s funds without filing a lawsuit or getting a court judgment. Hatch said his proposed change would align Minnesota with 45 other states.
“The idea here is not to change the law with regard to debt,” he said. “People who owe bills ought to pay them. What we’re trying to do here is bring Minnesota into line with almost every other state.”
He said his legislation would give debtors their day in court, where questions of whether a debt is owed and income can be frozen could be resolved by a judge.
For this complete story, please visit State Attorney General Proposes Tough New Law for Collectors.
