On October 1, the Minnesota Department of Commerce entered a consent order against a licensed collection agency over allegations that it continued to collect on a consumer’s account after the consumer had paid a settlement amount the agency offered. According to the department, the agency “inadvertently failed to update” the account to a zero balance after the payment and kept trying to collect an amount it claimed was still owed. The department alleged that by continuing to collect on an account settled in full, the agency falsely represented the character, amount or legal status of a debt in violation of the FDCPA, and therefore also violated Minnesota law. The department further alleged that the agency violated the FCRA in two ways: (i) it reported incomplete and inaccurate information about the account to consumer reporting agencies, which the department said demonstrated an “untrustworthy” act or practice under state law; and (ii) it failed to review all relevant information the consumer included in a dispute notice, which the department said demonstrated an “incompetent” act or practice.

Under the consent order, the agency must pay a $7,500 civil penalty to the state and $135 in investigative costs. It must also cease and desist from violating laws, rules, or orders tied to the duties and responsibilities entrusted to the commissioner under the state’s collection agency statutes. The agency waived its right to a hearing and agreed to resolve the matter informally, consenting to the order without admitting or denying the allegations. The order also provides that the civil penalty may be enforced as a judgment in district court without further notice and is non-dischargeable in bankruptcy.