Dealing With Debt Collectors in Minnesota (2026)
Reviewed by DocDraft Legal Team · Minnesota · Last updated August 13, 2026
This Minnesota guide explains your rights when a debt collector contacts you in the state. Minnesota's statute of limitations on most contract and open-account debt is six years under Minn. Stat. 541.05, and for consumer debt Minn. Stat. 541.053 provides that once the period runs it is not revived by a later payment, a bankruptcy discharge, or an oral or written reaffirmation. Minnesota also runs its own collection-practices regime: collection agencies, collectors, and debt buyers must be licensed by the Minnesota Department of Commerce, and Minn. Stat. 332.37 lists prohibited practices, including suing on debt outside the limitations period. Minnesota caps wage garnishment on a sliding scale under Minn. Stat. 571.922 and exempts a long list of property under Minn. Stat. 550.37. This page covers the state limitations periods, licensing, exemptions, and how to file a complaint with the Minnesota Attorney General.
What is the statute of limitations on debt in Minnesota?
Under Minn. Stat. 541.05, Minnesota gives a creditor six years to sue on most contract obligations, including written contracts, oral contracts, and open accounts such as credit cards. For consumer debt, Minn. Stat. 541.053 adds that once the six years run, the period is not revived by a later payment, a bankruptcy discharge, or a reaffirmation.
Can debt collectors garnish my wages in Minnesota?
Only after a creditor wins a court judgment. Minn. Stat. 571.922 caps garnishment on a sliding scale tied to the minimum wage: up to 25 percent of disposable earnings at higher incomes, less at lower incomes, and wages are fully exempt if you earn 40 times the minimum wage per week or less. Exemptions must be claimed.
How do I stop a debt collector from contacting me in Minnesota?
Send a written cease-communication letter. Under 15 U.S.C. 1692c(c), once a third-party collector receives it, contact must stop except to confirm it is ending or to note a specific remedy. Minnesota adds Minn. Stat. 332.37, which bars licensed collectors, agencies, and debt buyers from harassing or deceptive collection conduct.
What can a debt collector not do in Minnesota?
Under Minn. Stat. 332.37, a Minnesota collector cannot commence legal action on a debt outside the limitations period, threaten a lawyer or garnishment it has not actually arranged, use false or misleading communication, or violate the federal FDCPA. Collectors and debt buyers must also disclose that they are licensed by the Minnesota Department of Commerce.
How Minnesota regulates debt collectors
Minnesota layers a robust state regime on top of the federal FDCPA. Under Minn. Stat. chapter 332 (sections 332.31 to 332.44), no one may operate as a collection agency or debt buyer in Minnesota without first obtaining a collection agency license, and individual collectors must register with the commissioner of the Minnesota Department of Commerce. Minn. Stat. 332.37 lists prohibited practices for those licensees: it bars commencing legal action to collect a debt outside the limitations period in Minn. Stat. 541.053, threatening garnishment or action by a specific lawyer the collector has not retained, and violating the FDCPA while collecting. It also requires collectors and debt buyers to identify themselves by their licensed name and to disclose in initial written contact that they are licensed by the Minnesota Department of Commerce. On garnishment, Minnesota is more protective than the federal floor: Minn. Stat. 571.922 uses a sliding scale (10 to 25 percent of disposable earnings by income band) and fully protects the lowest earners, while Minn. Stat. 550.37 and the homestead statute (Minn. Stat. chapter 510) shield a long list of property, including a homestead exemption of up to $510,000. The Minnesota Attorney General's Office handles consumer complaints about collection practices.
Relevant Laws
Minnesota Statute of Limitations, Minn. Stat. 541.05
Sets a six-year limitations period for actions on a contract or other obligation, express or implied, as to which no other limitation is prescribed, covering written contracts, oral contracts, promissory notes, and open accounts such as credit cards.
Minnesota Collection Practices, Minn. Stat. 332.37
Part of Minnesota's collection-agency chapter (Minn. Stat. 332.31 to 332.44), it lists prohibited practices for licensed collection agencies, collectors, and debt buyers, including suing outside the limitations period in 541.053 and violating the FDCPA, and requires licensing through the Minnesota Department of Commerce.
Minnesota Wage Garnishment and Property Exemptions, Minn. Stat. 571.922 and 550.37
Section 571.922 caps wage garnishment on a sliding scale (10 to 25 percent of disposable earnings by income band, with full exemption at 40 times the minimum wage or less), and section 550.37 exempts a broad list of personal property from garnishment and execution.
Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692
The federal statute governing third-party debt collectors. It bars harassment (1692d), false or misleading representations (1692e), and unfair practices (1692f), and creates the debt validation right (1692g). It applies alongside Minnesota's own collection-practices law.
Regional Variances
Minnesota statute of limitations by debt type
Written contract
Six years under Minn. Stat. 541.05, subd. 1(1), which governs actions on a contract or other obligation, express or implied, with no other limitation prescribed. The clock generally runs from breach or the date of last activity on the account.
Oral contract
Six years under Minn. Stat. 541.05. Minnesota applies the same six-year contract limitation to oral agreements as to written ones, unlike states that impose a shorter period on oral debt.
Promissory note
Six years under Minn. Stat. 541.05 for a general promissory note obligation. Notes governed by Minnesota's Uniform Commercial Code may have their own timing rules; an attorney can confirm which applies to a specific instrument.: confirm any distinct UCC note period cite.
Open account / credit card
Six years under Minn. Stat. 541.05, treated as an open account, generally running from the last payment or charge. For consumer debt, Minn. Stat. 541.053 provides the expired period is not revived by a later payment, a bankruptcy discharge, or a reaffirmation.
Suggested Compliance Checklist
Read the validation notice and confirm the collector is Minnesota-licensed
Within 5 days of first contact days after startingConfirm the collector sent the Regulation F validation notice (12 CFR 1006.34) and check that its initial written contact discloses it is licensed by the Minnesota Department of Commerce, as Minn. Stat. 332.37 requires. Calendar the 30-day dispute window under 15 U.S.C. 1692g.
Verify the Minnesota statute of limitations before paying or promising
Before any payment or settlement days after startingCheck whether the six-year period under Minn. Stat. 541.05 has run, generally from the last payment or charge. For consumer debt, Minn. Stat. 541.053 means an expired period is not revived by a new payment, and suing on time-barred debt is prohibited under Minn. Stat. 332.37.
Send a written debt validation letter
Within 30 days of receiving the validation notice days after startingIf you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails you proof of the debt.
Send a cease-and-desist letter if you want contact to stop
As soon as you decide to stop contact days after startingUnder 15 U.S.C. 1692c(c), a written cease-communication letter requires a third-party collector to stop contacting you once received, except to confirm it is stopping or to note a specific remedy. Minn. Stat. 332.37 also restrains harassing conduct by licensed collectors. Keep proof of mailing.
File a complaint with the Minnesota Attorney General and Department of Commerce
Within 1 year of any FDCPA violation days after startingSubmit the Minnesota Attorney General's Consumer Assistance Request Form at ag.state.mn.us or call (651) 296-3353 or (800) 657-3787, and report the collector to the Minnesota Department of Commerce and the CFPB. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Read the validation notice and confirm the collector is Minnesota-licensed | Confirm the collector sent the Regulation F validation notice (12 CFR 1006.34) and check that its initial written contact discloses it is licensed by the Minnesota Department of Commerce, as Minn. Stat. 332.37 requires. Calendar the 30-day dispute window under 15 U.S.C. 1692g. | - | Within 5 days of first contact |
| Verify the Minnesota statute of limitations before paying or promising | Check whether the six-year period under Minn. Stat. 541.05 has run, generally from the last payment or charge. For consumer debt, Minn. Stat. 541.053 means an expired period is not revived by a new payment, and suing on time-barred debt is prohibited under Minn. Stat. 332.37. | - | Before any payment or settlement |
| Send a written debt validation letter | If you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails you proof of the debt. | debt-validation-letter | Within 30 days of receiving the validation notice |
| Send a cease-and-desist letter if you want contact to stop | Under 15 U.S.C. 1692c(c), a written cease-communication letter requires a third-party collector to stop contacting you once received, except to confirm it is stopping or to note a specific remedy. Minn. Stat. 332.37 also restrains harassing conduct by licensed collectors. Keep proof of mailing. | cease-and-desist-letter | As soon as you decide to stop contact |
| File a complaint with the Minnesota Attorney General and Department of Commerce | Submit the Minnesota Attorney General's Consumer Assistance Request Form at ag.state.mn.us or call (651) 296-3353 or (800) 657-3787, and report the collector to the Minnesota Department of Commerce and the CFPB. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly. | - | Within 1 year of any FDCPA violation |
Frequently Asked Questions
Credit card debt is treated as an open account, and Minnesota's six-year limitations period under Minn. Stat. 541.05 applies, generally running from the date of the last payment or charge. For consumer debt, Minn. Stat. 541.053 provides that once the period expires it is not revived by a later payment, a bankruptcy discharge, or an oral or written reaffirmation.
Yes. Under Minn. Stat. chapter 332, collection agencies and debt buyers must obtain a collection agency license and individual collectors must register with the Minnesota Department of Commerce before collecting in the state. A collector's initial written contact must disclose that it is licensed by the Minnesota Department of Commerce, and you can verify licensing with the Department.
A collector needs a court judgment first. Minn. Stat. 571.922 caps garnishment on a sliding scale tied to the minimum wage: up to 25 percent of disposable earnings at higher incomes, dropping to 15 or 10 percent at lower income bands, with full exemption for weekly earnings at or below 40 times the minimum wage. You must claim the exemption.
It should not. Under Minn. Stat. 332.37, commencing legal action to collect a debt outside the limitations period in Minn. Stat. 541.053 is a prohibited practice for licensed collectors, agencies, and debt buyers. If you are sued on a debt older than the six-year period, raising the statute of limitations is a defense, and an attorney can help you assert it.
Yes. Under the federal FDCPA (15 U.S.C. 1692k) you generally have one year from a violation to sue and may recover actual damages, statutory damages up to $1,000, and attorney's fees. You can also report the collector to the Minnesota Attorney General and the Department of Commerce. An attorney can help you evaluate a claim.
Other Minnesota guides
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