HF2564 (Legislative Session 94 (2025-2026))
Lenders required to pause monthly payments on seized property, and lenders prohibited from reporting failure to make monthly payments on seized property.
Related bill: SF1797
AI Generated Summary
Purpose of the Bill
The bill aims to protect consumers whose property, such as cell phones or vehicles, has been seized by law enforcement as evidence in a criminal investigation. It provides financial relief to these victims by suspending their recurring billing obligations until their property is returned.
Main Provisions
- Payment Suspension: Sellers or lenders must pause monthly payment requirements for victims whose property has been seized.
- Documentation Requirement: Victims must present documentation from law enforcement to prove that the property has been seized and is in custody.
- Resumption of Payments: The recurring billing requirement can only be resumed once the property is returned to the victim.
Significant Changes
- Prohibition on Reporting: The bill prohibits sellers or lenders from reporting victims to collection agencies for failing to make payments on seized property during the period it is held by law enforcement.
Relevant Terms
- Consumer protection
- Payment suspension
- Seized property
- Law enforcement
- Collection agency
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 19, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section is referenced to define 'collection agency' within the context of reporting requirements for seized properties.",
"modified": []
},
"citation": "332.31",
"subdivision": "subdivision 3"
}
]