Minn. AG: Debt Buyers Should Make Case In Court

ST. PAUL, Minn. (AP) -- Minnesota's attorney general is seeking legislation that would force companies that buy bad debts to prove in court that they're using reliable information when they target debtors for repayment.

Attorney General Lori Swanson announced her proposal Monday. She's backed by the chairs of the House and Senate judiciary committees.

Swanson says companies that buy old, unpaid debts for pennies on the dollar often obtain default court judgments against the debtors using incorrect or incomplete information. She says debtors frequently aren't properly informed of court proceedings against them or don't have resources to represent themselves in court.

The bill would force all debt buyers to establish evidence of the validity and amount of the debt, that the correct debtor is being targeted and that they properly own the debt in question.

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