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Consumer Fraud Restitution Fund is sponsored by Minnesota Attorney General's Office. This fund makes it easier for Minnesotans who have been victims of scams or fraud to recover their losses. It is financed by penalties collected from individuals and companies that perpetrated fraud.
AARP Minnesota championed the bill that created this fund.
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print();) # Minnesota AG's Office seeks changes to scam restitution fund Louise Schostek testifies April 15 before the House Commerce Finance and Policy Committee in support of a bill sponsored by Rep. Liz Lee, left, that would remove deposit limits on the consumer protection restitution account.
(Photo by Andrew VonBank) An account created last year to help scam victims become financially whole could receive some changes to provide funds to more people. The Consumer Protection Restitution Account currently has $4.
5 million and the Attorney General’s Office is in the process of distributing the first funds from the account, which will go to patients of a Woodbury dentist who shut down his practice without giving notice or refunds to patients.
The office has received 320 claims for restitution from the account, 76 of which have been approved for the first distribution totaling more than $1 million, according to Jason Pleggenkuhle, manager of the Consumer Protection Division at the Attorney General’s Office. Sponsored by Rep. Liz Lee (DFL-St.
Paul), HF4867 would remove the $5 million annual limit on deposits into the account. It would also implement a formula for restitution payouts that would distribute full restitution up to $50,000 and 50% of the amount over $50,000. The House Commerce Finance and Policy Committee laid the bill over Wednesday.
Rep. Josh Heintzeman (R-Nisswa) is glad to see the deposit limit lifted, but questioned if there was a way to address the larger restitution amounts since there may be more money flowing into the account. Lee said the bill’s details are a “starting position” for discussion as it moves through the Legislature.
Account funding comes from 50% of all money recovered by the Attorney General’s Office in consumer enforcement action and restitution funds that can’t be feasibly distributed to consumers.
Minnesotans canfile a complaintwith the office when they are a victim of a consumer scam, which triggers the process to receive a court order for restitution and receive a distribution from the account if the defendant doesn’t have funds for restitution.
Pleggenkuhle said the office continues to attempt to collect restitution from a defendant even if restitution is paid out of the account and anything recovered would go into the restitution account. The bill wouldn’t change the funding mechanism for the account, but it would allow the Attorney General’s Office to continue to deposit funds into the account annually without worrying about a limit, Pleggenkuhle said.
It also would set a fair formula for restitution that would allow the office to distribute money to as many consumers as possible, he said. “Without this change, despite the fact that there might be hundreds of consumers waiting in line for restitution, consumers that have an outsized amount of loss threatened to exhaust the fund to the detriment of other consumers,” he said, pointing out that the top 10 claim amounts total $6.
5 million.
March 5, 2025 March 5, 2025 House panel debates proposed exemptions to state's cadmium, lead ban Lawmakers strike deal on commerce policy, consumer protection package April 15, 2024 April 15, 2024 House passes commerce policy bill packed with proposed consumer protections April 11, 2024 April 11, 2024 House passes bill that calls for added protections for online ticket buyers April 9, 2024 April 9, 2024 Defrauded homeowners could receive more from contractor recovery fund March 11, 2024 March 11, 2024 House passes expanded price-gouging legislation March 5, 2024 March 5, 2024 Proposed ban on flavored tobacco products moves ahead in House March 4, 2024 March 4, 2024 Feb.
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According to the current listing, eligibility includes: Minnesotans who have been victims of scams or fraud. Confirm the full requirements in the official notice before applying.
Consumer Fraud Restitution Fund is funded by Minnesota Attorney General's Office. Verify program details on the funder's official page before applying.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
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