Debt Collectors Lose Lien Case in Minnesota

Dec. 30, 2015

Dec. 30, 2015—On Tuesday, Hennepin County District Court in Minneapolis ruled that non-attorney debt collectors are prohibited from preparing, signing and recording mechanic’s lien statements for others.

A mechanic’s lien is a security interest in the title to property for the benefit of anyone who has supplied labor or materials to improve the property. A mechanic’s lien is applicable to anyone who has furnished services, material or equipment and has compiled with the notice requirements.

Before Tuesday, the Minnesota courts has not determined whether or not non-attorney debt collectors could lawfully prepare, sign, and record mechanic’s lien statements. Hennepin County District Court Judge Karen A. Janisch issued an order prohibiting this. The order implicates all non-attorney debt collectors who offer such services in Minnesota.

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