There are two separate statutes. One applies to creditors and the other applies to collection agencies and debt buyers. In NC, you can sue a creditor for much of the same illegal conduct which violates the Federal Fair Debt Collection Practices Act (which applies to third-party debt collectors, but not to creditors).
The law that covers creditors is commonly referred to as the North Carolina Debt Collection Act. The law that covers collection agencies and debt buyers is commonly referred to as the North Carolina Collection Agency Act.
These laws were amended in 2009, in part to increase the penalties which debt collectors and creditors have to pay for their violations. Consumers can recover, in addition to any actual damages they have incurred, a penalty of between $500 and $4000 for each violation by the debt collector or creditor. Courts also have the authority to require the debt collector or creditor to pay the consumer’s attorneys’ fees.
The laws described on this page are set forth in full in the North Carolina General Statutes, Chapter 58, Article 70, Sections 90-155 and Chapter 75, Article 2, Sections 50-56.
In addition to rules covering the actions of creditors and collection agencies under your state’s laws, the Fair Debt Collection Practices Act (FDCPA) provides rules protecting consumers from illegal actions of debt collectors, and it applies equally in every state. This means that even if your state laws cannot help you, the FDCPA applies in many more situations.
In fact, certain sections of the laws listed in the available download may have been redacted for brevity.
If you want to find out more about how these laws pertain to your specific situation, please call us at (877) 846-1209 for a free case review with an experienced consumer law attorney. If you prefer, fill out our free case review form and we will contact you.