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SF 2929

Consumers in Crisis Protection Act

2025-2026 Regular Session Introduced by Jeff Howe and 2 co-sponsors

Minnesota bill restricts debt collection and fees during consumer financial crises, allowing temporary payment relief to prevent hardship-driven bankruptcy and homelessness.

Referred to Commerce and Consumer Protection
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Bill Summary · SF 2929

Legislative bill overview

SF 2929, the Consumers in Crisis Protection Act, establishes protections for consumers experiencing financial hardship by restricting certain collection and creditor practices during declared economic emergencies or personal crises. The bill creates a framework allowing consumers to request temporary relief from debt collection activities, late fees, and interest accrual when they can demonstrate financial distress.

Why is this important

During economic downturns or personal emergencies (job loss, medical crisis, natural disasters), vulnerable consumers often face aggressive collection practices that compound their financial instability. This bill attempts to provide breathing room for struggling households while maintaining creditor communication channels, potentially reducing homelessness and bankruptcy filings during crisis periods.

Potential points of contention

  • Creditor opposition: Lenders argue that payment suspensions without interest accrual create losses they cannot absorb, potentially leading to higher rates for all consumers or reduced credit availability
  • Defining "crisis": The bill's criteria for qualifying hardship must balance accessibility against preventing abuse; overly broad definitions risk moral hazard, while narrow ones exclude genuinely struggling consumers
  • Duration and scope: Dispute over how long relief periods should last and which debt types qualify (credit cards vs. mortgages vs. medical debt) affects both consumer protection and financial system stability

Compiled from official sources — confirm details with the bill’s official record.

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