Collection Agencies in North Carolina and Laws

North Carolina Collection Laws:

1. Fair Debt Collection Practices Act (FDCPA): The FDCPA is a federal law that protects consumers from abusive, deceptive, or unfair debt collection practices. It applies to third-party debt collectors, not the original creditors, and regulates how and when they can contact a debtor.

2. North Carolina Fair Debt Collection Practices Act: This state law is similar to the federal FDCPA but offers additional protections to North Carolina consumers. It applies to a broader range of debt collectors, including original creditors.

3. North Carolina Statute of Limitations: The statute of limitations for debt in North Carolina is generally three years for unsecured debts based on a written contract and four years for debts incurred because of the sale of goods (this is based on the Uniform Commercial Code). This means that a creditor cannot successfully sue a consumer to collect the debt after the statute of limitations has passed. However, be aware that making a payment or acknowledging the debt can restart the clock on the statute of limitations.

4. Wage Garnishment Laws: As of 2021, North Carolina is one of the states that generally prohibit wage garnishment for most consumer debts. However, there are exceptions such as child support, alimony, federal student loans, and taxes.

5. Communication with Debt Collectors: In North Carolina, debt collectors are required to provide written notice of the debt, including the amount owed and the name of the creditor, and information on how the consumer can dispute the debt. Debt collectors are also restricted from calling consumers at unreasonable hours and are prohibited from using harassment or abusive tactics in collecting the debt.

6. Credit Counseling and Exemptions: North Carolina law provides protections for certain types of assets from being seized by creditors. The state also encourages individuals struggling with debt to seek credit counseling.

Remember that laws change and the information I have provided may no longer be accurate. It’s advisable to consult a lawyer or legal aid organization to get the most current information and advice on dealing with debt collectors in North Carolina.

A complete list of federal laws to be followed by all collection agencies in USA are listed here: Debt collection laws

Debt Statistics:
* 1.2 million North Carolinians hold $44 billion of student debt
* Average credit card balance: $6,117
* Average Mortgage Debt: 162,366