Debt Management

Credit Service Organization

A Credit Services Organization is a business that, for a fee, offers the following services to consumers: improving the consumer's credit rating or history, obtaining credit for the consumer, or providing credit advice or assistance to the consumer. (Minnesota Statute §332.52)

The department licenses these organizations and provides regulatory oversight. 

Registration Requirements

• The steps to apply for registration as a credit services organization are outlined on the NMLS website. 
• The name and address of the credit services organization.
• The name and address of the registered agent authorized to accept service of process on behalf of the credit services organization.
• The name and address of any person who directly or indirectly owns or controls a ten percent or greater interest in the credit services organization.
• The name and address of the surety company that issued the bond required under §332.55.
• Full disclosure of any litigation or unresolved complaint filed within the preceding five years with the state, any other state, or the United States relating to the operation of the credit services organization, or a notarized statement that there has been no litigation or unresolved complaint filed within the preceding five years with the state, any other state, or the United States relating to the operation of the credit services organization.
• Attach a copy of the contract which the credit services organization intends to execute with its consumers and evidence of the required bond.
• A physical presence in Minnesota is not required.
• A filed Certificate of Authority from the Minnesota Secretary of State to transact business in Minnesota.
• A filed Certificate of Assumed Name from the Minnesota Secretary of State if the DBA Name is different from full legal name of individual or business entity or does not include the full name of each partner.
• An original $10,000 surety bond, completed signed and notarized properly.
• $1,000 registration fee for each location of business.

Education Requirements

• There are no educational requirements.

Registration Renewal

• Licenses issued under Chapter 332.52 to 332.60 expire annually on June 30.
• $1,000 renewal fee for each location of business.
• A credit services organization must submit to the commissioner at the time of registration, an annual surety bond of $10,000, expiring on June 30 of each year, by an insurance company which is authorized by the state of Minnesota to transact the business of fidelity and surety insurance. The credit services organization must be the obligor. The bond must benefit the state of Minnesota and any person who may have a cause of action against the obligor arising out of the obligor's activities as a credit services organization. The commissioner may accept a deposit in cash, or securities that may be legally purchased by savings banks or for trust funds of an aggregate market value equal to the bond requirement, in lieu of the surety bond. The cash or securities must be deposited with the commissioner of finance.

Debt Management

Debt Management Services Providers help aid over-extended consumers with financial planning by developing a budget and receiving funds from the consumer to repay creditors under a specific plan. See Minnesota Statute 332A.

You are a debt management services provider and need to be registered (whether or not you are located in Minnesota) if you provide any one or more of the following services in connection with debt incurred primarily for personal, family, or household services:

• Managing the financial affairs of an individual by distributing income or money to the individual's creditors; 
• Receiving funds for the purpose of distributing the funds among creditors in payment or partial payment of obligations of a debtor; or 
• Adjusting, prorating, pooling, or liquidating the indebtedness of a debtor.

Any person so engaged or holding out as so engaged is deemed to be engaged in the provision of debt management services regardless of whether or not a fee is charged for such services.

Commerce registers these companies and provides regulatory oversight to ensure fair business practices.

Debt Management Requirements

A Debt Management Services Provider, under Minnesota Statute, Chapter 332A, must obtain a license from the Department of Commerce. A physical presence in Minnesota is not required. Questions about this registration should be directed to 651-539-1600.

Requirements:

1. Complete the Debt Management Services Provider Registration Form (.pdf)
2. $1,000 registration fee. The fee is nonrefundable.
3. A filed Certificate of Authority from the Minnesota Secretary of State to transact business
4. A filed Certificate of Assumed Name from the Minnesota Secretary of State if the DBA Name is different from full legal name of individual or business entity or does not include the full name of each partner.
5. If a Partnership, a partnership agreement signed by all partners. 
6. Provide a biographical statement and complete list of owners, partners, officers, directors, stockholders (owning 10 percent or more of corporate stock or membership interest), or any employee with authority to exercise management or policy control over the company.
7. Board of Director resolutions
8. The name and address of the registered agent authorized to accept service of process on behalf of the debt management services provider.
9. Provide a copy of standard debt management services provider agreements.
10. Original corporate Surety Bond (.pdf) for an amount not less than $5,000 but at least equal to the largest amount which may or has accrued in the Trust Account during the year.
11. Proof of accreditation as an accredited credit counseling provider.
12. Provide evidence of current workers' compensation insurance.
13. A physical presence in Minnesota is not required.

Change of name on a registration

Name changes on the registration must be submitted in writing within 10 days of the change. Submit a letter to the Commerce Department explaining the change, list the current name and the proposed name, list the registration number, and attach a filed amended Certificate of Authority or Certificate of Assumed Name from the Minnesota Secretary of State. The change also needs to be made on the surety bond. Provide a rider from the surety company and attach to the legal documentation. A new license will be issued when proper documentation is received.

Change of address on a registration

Any material changes to the information that was submitted with the initial registration must be made within ten (10) days of the change. The change also needs to be made on the surety bond. Provide a rider from the surety company and attach to the legal documentation. A new registration will be issued when proper documentation is received.

Renewal:

• Registrations issued under Minnesota Statute §332A expire annually on December 31.
• Renewal notices and an annual renewal report will be sent to registrants at the address on record in November of each year and will be due by December 1 of each year.
• $250 renewal fee.

Debt Settlement

A Debt Settlement Services Provider, pursuant to Minnesota Statute §332B, must obtain a registration from the Department of Commerce. A physical presence in Minnesota is not required. Questions about this registration should be directed to 651-539-1705.

Requirements:

• Complete the Debt Settlement Services Provider Registration Form (.pdf).
• $1,000 registration fee. The fee is nonrefundable.
• A filed Certificate of Authority from the Minnesota Secretary of State to transact business.
• A filed Certificate of Assumed Name from the Minnesota Secretary of State if the DBA Name is different from full legal name of individual or business entity or does not include the full name of each partner.
• If a Partnership, a partnership agreement signed by all partners.
• Provide a biographical statement and complete list of owners, partners, officers, directors, stockholders (owning 10 percent or more of corporate stock or membership interest), or any employee with authority to exercise management or policy control over the company.
• Board of Directors' resolution.
• The name and address of the registered agent authorized to accept service of process on behalf of the debt settlement services provider.
• Provide a copy of standard debt settlement services provider agreement.
• Original corporate Surety Bond (.pdf) for an amount not less than $5,000.
• Proof of accreditation as defined in Minnesota Statute §332B, as a credit counseling provider, or an affidavit attesting that Registrant does not provide credit counseling services.
• Provide evidence of current workers' compensation insurance.
• A physical presence in Minnesota is not required.

Change of name on a registration

Name changes on the registration must be submitted in writing within 10 days of the change. Submit a letter to the Commerce Department explaining the change, list the current name and the proposed name, list the registration number, and attach a filed amended Certificate of Authority or Certificate of Assumed Name from the Minnesota Secretary of State. The change also needs to be made on the surety bond. Provide a rider from the surety company and attach to the legal documentation. A new registration will be issued when proper documentation is received.

Change of address on a registration

Any material changes to the information that was submitted with the initial registration must be made within ten (10) days of the change. The change also needs to be made on the surety bond. Provide a rider from the surety company and attach to the legal documentation. A new license will be issued when proper documentation is received. 

Renewal:

• Registrations issued under Minnesota Statute 332B expire annually on December 31.
• Renewal notices and an annual renewal report will be sent to registrants at the address on record in
• November of each year and will be due by December 1 of each year.
• $250 renewal fee.