St. Paul, Minn.— Senator Kevin Dahle (DFL-Northfield) has authored a new bill intended to protect Minnesotans from debt settlement scams. The legislation will extend the protections of the existing debt settlement law to the scams involving the alleged settlement of tax debts. While Minnesota’s debt settlement law establishes rules protecting consumers from scams, it only applies to credit card or medical debt.
“Most Minnesotans have seen late night TV commercials from companies promising to work with the IRS to reduce or even settle tax debts entirely. Some of them are scams, and too many taxpayers have been taken advantage of in this way,” said Sen. Dahle. “These scammers use the same techniques as those peddling credit card debt settlements or medical debt. Putting victims of tax debt scams under the same protections is just common sense, and will give taxpayers much better coverage under the law.”
The legislation also strengthens the debt settlement law by ensuring that any legal disputes involving Minnesotans are settled in Minnesota courts. The bill will be introduced in the Senate on Thursday, and already has bipartisan support in House author Rep. Dennis Smith (R-Maple Grove).