Minnesota 2023-2024 Regular Session

Minnesota House Bill HF4077

Introduced
2/22/24  
Refer
2/22/24  
Report Pass
4/4/24  

Caption

Consumer protection, monetary and financial institutions policy, insurance, and telecommunications provisions added, modified, or eliminated; on-sale liquor licenses modified and authorized; technical changes made; reports required; and penalties established.

Impact

If enacted, HF4077 will significantly affect Minnesota's debt collection landscape by expanding the definition of coerced debt to include debts incurred through manipulation or without the debtor's knowledge or consent. Additionally, it introduces numerous protections related to medical debt collection, such as prohibiting the reporting of medical debts to credit bureaus. The bill seeks to create a more equitable environment for consumers, ensuring they are better educated and protected against exploitative lending practices. Furthermore, it establishes a consumer education account to fund outreach efforts to inform consumers about affordable housing and home ownership.

Summary

HF4077 is a comprehensive consumer protection bill that aims to amend several existing statutes concerning financial institutions and the management of consumer debt. Its primary focus is on strengthening the legal framework regarding how debts are incurred and collected, with a particular emphasis on protecting vulnerable populations from coercive lending practices and unfair service agreements. The bill outlines new definitions related to money transmission, coerced debt, and economic abuse, providing clearer guidelines for enforcement and consumer rights.

Sentiment

The sentiment surrounding HF4077 appears to be generally supportive among consumer advocacy groups and those concerned about financial regulations. Supporters believe the bill will offer vital protections against predatory practices and enhance consumer rights. However, there is notable contention from some financial institutions and industry representatives who argue that the new regulations could create additional burdens on businesses and discourage lending. The debate reflects a tension between consumer protection advocates and the financial sector’s interests.

Contention

Critics of HF4077 raise concerns regarding its implications for the lending market, particularly how stricter enforcement mechanisms might restrict businesses from offering loans, especially to higher-risk individuals. Furthermore, the definitions regarding coercion and economic abuse could lead to ambiguities that complicate standard lending practices, potentially resulting in inadvertent violations and increased litigation. The bill's extensive revisions to existing statutes, while aiming to enhance consumer protection, are viewed by some as an overreach that could hinder economic activity.

Companion Bills

MN SF4097

Similar To Omnibus Commerce policy bill

Previously Filed As

MN HF4041

Financial institution various governing provisions added and modified, and technical changes made.

MN SF4157

Various financial institutions provisions modifications and technical changes

MN HF1804

Consumer protection; sale of motor vehicles governing provisions modified and added.

MN HF4757

Cannabis; Office of Cannabis Management and the Department of Health appropriations modified, cannabis provisions modified, Department of Commerce assessed fees modified, consumer protection provisions added and modified, Minnesota Consumer Data Privacy Act established, rulemaking authorized, data classified, technical changes made, reports required, and money appropriated.

MN SF4

Omnibus Commerce and Consumer Protections policy and appropriations

MN SF4097

Omnibus Commerce policy bill

MN SF4384

Labor policy and technical changes provisions modifications

MN HF2261

Landlords and tenants; effective dates clarified, landlord covenants modified, additional remedies provided, and technical changes made.

MN SF2216

Omnibus Commerce and Consumer Protections policy and appropriations

MN HF4361

Teacher licensure provisions modified, and reports required.

Similar Bills

MN SF4097

Omnibus Commerce policy bill

MN SF2219

Historical horse racing prohibition

MN HF5216

Judiciary, public safety, and corrections supplemental budget bill.

MN SF4271

Omnibus Judiciary and Public Safety policy bill

MN SF2744

Omnibus Commerce appropriations

MN HF2680

Commerce finance and policy bill.

MN HF3692

Contract requirements for deeds between investor sellers and purchasers of residential real property modified, recording provisions modified, disclosures required, right to cancel provided, and civil remedies authorized.

MN SF3489

Contract for deed requirements between investor sellers and purchasers of real property modification; recording provisions modifications; disclosures requirement; right to cancel and civil remedies authorization