Friday, May 16, 2025
AccountsRecovery.net
  • Home
  • News
    • Compliance
      • FCRA
      • FDCPA
      • TCPA
    • Daily Digest
    • Debt Buying
    • Economy
    • General News
    • Getting to Know
    • Healthcare
    • Student Loans
    • Technology
  • Webinars/Events
    • Upcoming Webinars & Events
    • Webinar Recordings
    • W.A.R.M. – Webinar Streaming Channel
  • Jobs
  • Videos
    • Ask The Credit Reporting Expert
    • Behind The Curtain
    • Between The Briefs
    • Customer Experience Week Videos
    • Demo Day Videos
    • Digital Debrief
    • Future Summit 2023
    • Legends of the ARM Industry
    • Q&ARM Videos
    • Teaching Tech
    • Tech Bytes: A Guide to AI
    • Training Bytes
    • Web Bytes
    • You Wanted a Rule; You Got a Rule
  • Premium Content
    • Account Settings
  • Login
  • Register
No Result
View All Result
AccountsRecovery.net
Home Compliance

North Carolina Legislature Considers Diverging Paths for Debt Settlement: Regulation vs. Prohibition

mikegibb by mikegibb
April 8, 2025
in Compliance
0
NC AG Reaches $15k Settlement With Agency For Operating Without Proper Permit

A pair of bills have been introduced in the North Carolina legislature that aim to overhaul the debt settlement industry, albeit by different means. One bill seeks to license and regulate debt settlement providers, while the other seeks to eliminate it entirely.

Senate Bill 491: Licensing and Regulation of Debt Settlement Providers

Related posts

Judge Denies MTD in FDCPA SOL Case

Judge Denies Defendant’s Motion for Attorney’s Fees in FCCPA Case

May 16, 2025
CFPB Logo

CFPB Reduces $2M Chopra-Era Fine to $45k

May 16, 2025

On March 25, 2025, a trio of Republican North Carolina Senators introduced Senate Bill 491, which aims to create the North Carolina Debt Settlement Services Act. This legislation proposes a regulatory framework that would license, examine, and regulate debt settlement services in the state, including fee caps. If passed, the bill will come into effect on January 1, 2026.

Under the bill, debt settlement services would be required to obtain a license from the North Carolina State Banking Commission. The bill defines “debt settlement services” as any action or negotiation initiated on behalf of a debtor to obtain debt forgiveness. The application process for licensure is stringent, requiring financial statements, criminal background checks, and fingerprints from key personnel, as well as a $2,000 application fee. Successful applicants would also need to post a surety bond of $1 million and pay an annual fee of $1,000.

Debt settlement service agreements would need to comply with strict guidelines, including detailed disclosures about fees (which would be capped at 15% of the debt or 20% of the debt reduction). The bill also prohibits certain practices, such as enrolling debts less than 60 days delinquent and promoting additional credit extensions. Violators could face civil penalties, criminal prosecution, and private lawsuits, with the potential for treble damages.

House Bill 734: Prohibition of Debt Settlement

In stark contrast to Senate Bill 491, just a week later, a quartet of Republican North Carolina House Representatives introduced House Bill 734, which seeks to expand the existing prohibition of debt adjusting to include debt settlement. Currently, only “debt adjusting” is prohibited under state law. If passed, H.B. 734 would make debt settlement an unfair trade practice, banning it outright in North Carolina, effective July 1, 2025.

The bill defines “debt settlement” as the practice of acting as an intermediary between a debtor and creditor to reduce, settle, or alter debt terms. The proposed law also voids any contracts for debt settlement, making them unenforceable. Violators of the bill could face criminal penalties, civil penalties, and be subject to enforcement actions from the Attorney General, who would have the authority to seek restitution for affected debtors.

H.B. 734 introduces robust civil remedies for consumers, allowing them to seek restitution, attorney’s fees, and treble damages if they are harmed by debt settlement services. The bill also empowers the Attorney General to pursue legal action against violators.

Tags: Debt SettlementHB 734North CarolinaSB 491
Previous Post

FCC Extends Part of TCPA Revocation Rule Deadline to 2026

Next Post

Daily Digest – April 8. Collector Sued for Sending Email After Consumer Allegedly Requested Communications be Ceased; FCC Extends Part of TCPA Revocation Rule Deadline to 2026

Next Post
Daily Digest – April 8. Collector Sued for Sending Email After Consumer Allegedly Requested Communications be Ceased; FCC Extends Part of TCPA Revocation Rule Deadline to 2026

Daily Digest - April 8. Collector Sued for Sending Email After Consumer Allegedly Requested Communications be Ceased; FCC Extends Part of TCPA Revocation Rule Deadline to 2026

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Numbers Down For September, But CFPB Complaints Already Setting Records: WebRecon

Numbers Down For September, But CFPB Complaints Already Setting Records: WebRecon

4 years ago
Daily Digest – December 2. Nebraska Collection Agency Settles FDCPA Case; District Court Rules For Industry In Envelope Suit

Judge Grants MTD in FDCPA Case for Lack of Standing

3 years ago
Daily Digest – May 16. FDCPA Suit Takes ‘Known or Should Have Known’ to New Levels; Court Weighs in on Former CEO’s Wage Battle with Collection Agency

Daily Digest – May 16. FDCPA Suit Takes ‘Known or Should Have Known’ to New Levels; Court Weighs in on Former CEO’s Wage Battle with Collection Agency

2 years ago
Daily Digest – February 3. Lawmakers Call For CFPB ‘Crack Down’; TCPA Suits Scare Utility Into Ceasing Phone Calls

Daily Digest – June 14. Ontario Systems Acquires Columbia Ultimate; Bill Introduced To Amend FDCPA

9 years ago

Upcoming Events

Current Month

May, 2025

Don’t Miss Out – Get All the Important News and Events in Your Inbox
Loading

News

  • Compliance
  • Daily Digest
  • Debt Buying
  • Economy
  • General News
  • Getting to Know
  • Healthcare
  • Student Loans
  • Technology

Videos

  • Ask The Credit Reporting Expert
  • Behind The Curtain
  • Between The Briefs
  • Customer Experience Week Videos
  • Demo Day Videos
  • Digital Debrief
  • Future Summit 2023
  • Legends of the ARM Industry
  • Q&ARM Videos

Informational

  • Premium Content
  • Upcoming Webinars
  • Webinars Recordings
  • W.A.R.M. – Webinar Streaming Channel

Don’t Miss Out – Get All the Important News and Events in Your Inbox

Loading
  • Compliance
  • Daily Digest
  • Debt Buying
  • Economy
  • General News
  • Getting to Know
  • Healthcare
  • Student Loans
  • Technology

© 2025 All Right Reserved by Account Recovery

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Compliance
      • FCRA
      • FDCPA
      • TCPA
    • Daily Digest
    • Debt Buying
    • Economy
    • General News
    • Getting to Know
    • Healthcare
    • Student Loans
    • Technology
  • Webinars/Events
    • Upcoming Webinars & Events
    • Webinar Recordings
    • W.A.R.M. – Webinar Streaming Channel
  • Jobs
  • Videos
    • Ask The Credit Reporting Expert
    • Behind The Curtain
    • Between The Briefs
    • Customer Experience Week Videos
    • Demo Day Videos
    • Digital Debrief
    • Future Summit 2023
    • Legends of the ARM Industry
    • Q&ARM Videos
    • Teaching Tech
    • Tech Bytes: A Guide to AI
    • Training Bytes
    • Web Bytes
    • You Wanted a Rule; You Got a Rule
  • Premium Content
    • Account Settings
  • Login
  • Sign Up

© 2025 All Right Reserved by Account Recovery

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
X