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.

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.

Credit Service Organization
Questions

Contact Financial Institutions Division licensing staff by phone at 651-539-1570 or send your questions via email for additional assistance.

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.

The department licenses these organizations and provides regulatory oversight.

Apply
- Minnesota uses the Nationwide Mulitstate Licensing System (NMLS). Organizations applying for a Credit Service Organization (CSO) License are required to use the NMLS.
- View the Credit Services Organization checklist of requirements.
- Please Read Minnesota Statute §332.60 before applying for a Credit Service Organization License. Unlicensed activity may result in administrative action.
- An Electronic Surety Bond (ESB) for $10,000 must be filed in NMLS.
- How to file an ESB in NMLS
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.

$1,000 registration fee for each location of business.

Renewal
- Licenses issued under Chapter 332.52 to 332.60 expire annually on June 30. The renewal fee is $1,000 for each location of business.
- The Department of Commerce will send renewal notees to licensees in May of each year.
- Licensees must also renew their NMLS registration each year between November 1 and December 31.
- Renewal is done through NMLS.
Debt Management Requirements
Questions

Contact Financial Institutions Division licensing staff by phone at 651-539-1570 or send your questions via email for additional assistance.

A Debt Management Services Provider, under Minnesota Statute, Chapter 332A, must obtain a license from the Minnesota Department of Commerce. A physical presence in Minnesota is not required.

Apply

Minnesota uses the Nationwide Mulitstate Licensing System (NMLS). Organizations applying for a Debt Management Services License are required to use the NMLS.

View the Debt Management checklist of requirements.

Please Read Minnesota Statute §332.60 before applying for a Debt Management Services License. Unlicensed activity may result in administrative action.

An Electronic Surety Bond (ESB) for $5,000 must be filed in NMLS.
- How to file and ESB in NMLS
The commissioner may accept a deposit in cash, or securities that may legally be 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 management and budget.

The commissioner may also require a fidelity bond in an appropriate amount covering employees of any applicant.

Each branch office or additional place of business in this state of an applicant must be bonded as provided in this subdivision.

Renewal

Licenses issued under Chapter Minnesota Statute §332A expire annually on December 31 and are renewable on January 1 of each year after that date. The renewal fee is $250. Renewal is done through NMLS.

An annual report will be sent to registrants at the email address provided on the Company MU1 in November of each year and will be due by March 15 of each calendar year.
Debt Settlement
Questions

Contact Financial Institutions Division licensing staff by phone at 651-539-1570 or send your questions via email for additional assistance.

A Debt Settlement Services Provider, pursuant to Minnesota Statute §332B, must obtain a registration from the Minnesota Department of Commerce. A physical presence in Minnesota is not required.

Apply

Minnesota uses the Nationwide Multistate Licensing System (NMLS). Organizations applying for a Debt Settlement License are required to use the NMLS.
- View the Debt Settlement Services Provider checklist of requirements.
Please read Minnesota Statute §332B before applying for a Debt Settlement Services License. Unlicensed activity may result in administrative action.

An Electronic Surety Bond (ESB) for $5,000 must be filed in NMLS.
- How to file and ESB in NMLS
The commissioner may accept a deposit in cash, or securities that may legally be 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 management and budget.

The commissioner may also require a fidelity bond in an appropriate amount covering employees of any applicant.

Each branch office or additional place of business in this state of an applicant must be bonded as provided in this subdivision.

Renewal

Licenses issued under Minnesota Statute §332B expire annually on December 31 and are renewable on January 1 of each year. The renewal fee is $250. Renewal is done through NMLS.

An annual report will be sent to registrants at the email address provided on the Company MU1 in November of each year and will be due by March 15th of each calendar year.