MN HF2996

Requires a person to provide an "Intent to Commence a Lawsuit" notice to the debtor at least 30 days before filing a civil action or arbitration proceeding to collect purchased debt, with specific content requirements including creditor name, debt details, original account number, contract copy, and itemized accounting.

Prohibits commencement of collection action within the 30-day notice period, if the debtor disputes the debt in writing and the creditor has not responded, or if the applicable statute of limitations has expired.

Requires attachment of specific documents to the summons and complaint, including proof of ownership chain through assignments, original debt contract with defendant's signature or seller affidavit, and affidavit stating the date and amount of the last payment made.

Prohibits entry of default judgment on purchased debt unless the person files with the court properly authenticated business records, original account number, original creditor name, original debt amount, itemized charges and fees, charge-off balance with explanation, postcharge-off additions, date of last payment, payment record showing balance computation, and interest calculation basis.

Establishes penalties of $2,500 for violations of notice or documentation requirements and $5,000 for violations of ownership/documentation requirements, with liability for actual damages, costs, attorney fees, and civil fines of $5,000 for false affidavits.