Employment Background Check Requirements Expanded For Debt Collectors in Minnesota

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Minnesota State Flag resized 600The Minnesota Department of Commerce has expanded its criminal background check requirements for debt collectors in the state of Minnesota, effective August 1st, 2012.  Under Minnesota. Stat. § 332.35, as amended by H.F. 2335.

Screening Process Requirements
Each licensed collection agency must establish procedures to follow when screening an individual collector applicant prior to submitting them to the commissioner for initial registration and renewal.  The screening process for initial registration of an individual collector shall consist of a criminal history record check and a statewide county search through a vendor that is a member of the National Association of Professional Background Screeners (NAPBS) for all states of residence of the applicant within the five years immediately preceding the initial registration, to determine whether the applicant is eligible to be registered under section 332.35 of the act. 

Screening for renewal of individual collector registration shall consist of a public records search with the Bureau of Criminal Apprehension or equivalent. Screening for renewal of individual collector registrations shall take place no more than 60 days before license expiration or renewal date.

Prior Conviction or Judgment as Disqualification

No registration shall be accepted for, and no license shall be issued to, any person, firm, corporation or association who or which, or any of the officers of which have, within the past five years:

(1)  Been convicted of any felony;

(2)  Been convicted of any misdemeanor or gross misdemeanor involving any financial crime;

(3)  Been unable to certify that they have no civil judgments against them for failure to account to a client or customer for money or property collected by them for the client or customer.  A civil judgment does not disqualify an applicant for registration under this section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for failure to account to a client or customer for money or property; or

(4)  Had a license to practice law revoked or suspended for cause.

Collectors and/or collection agencies should refer to the entire act for additional responsibilities and requirements for full compliance.

PLEASE NOTE: Employers subject to these new provisions should contact their legal counsel for guidance immediately and revise their policies accordingly.  All information contained herein is provided by Employment Background Investigations solely for the convenience of its readers. EBI is not providing legal advice or counsel and nothing provided within should be deemed as legal guidance or advice.  Readers should consult with their own legal counsel to determine their legal responsibilities or if they have questions on any information provided by EBI.

Choosing the Right Screening Firm that is NAPBS Accredited
Employers required to comply with this act should not only seek out a member of the National Association of Professional Background Screeners (NAPBS), but a member that is ACCREDITED. Employment Background Investigations, Inc. (EBI) is an ACCREDITED member of NAPBS and a committed partner and industry leader.   EBI demonstrates its diligence and dedication to our clients in achieving accreditation.  EBI has quantified its solid performance in critical areas such as information security, legal compliance, client education, researcher and data standards, verification standards and overall business practices. There are overwhelming benefits of why partnering with EBI will take your background screening program to the highest level in our industry.

EBI can help design a program that is comprehensive, compliant, and timely by using a combination of county, state, federal and national electronic database resources for a complete criminal background check solution.  EBI is committed to providing employers with valuable education and resources on changing legislation and cutting-edge and compliant solutions to meet federal, state, local and international mandatory requirements for an employment background check. If you found this information useful, select the button below and access more industry news, resources and tips from EBI, an NAPBS Accredited screening firm and global leader in the background screening industry!