MEMBER ALERT

NORTH CAROLINA BILL S974 PASSES AND WILL SEVERLY LIMIT DEBT BUYERS COLLECTION OF CONSUMER DEBT

DBA International has diligently opposed S974 via its lobbyist, Board member’s attendance at hearings, efforts by its General Counsel to work with the NC Legislature, and individual member’s efforts on revisions to the Bill.  Unfortunately, S974 which was ratified last week and will be sent to the North Carolina Governor for signature, will severely hamper the collection of debts owned by debt buyers. The Bill was supported by the North Carolina Attorney General and the Consumer Justice Center. DBA attended hearings and worked with its lobbyist in opposing this Bill. DBA wishes to thank attorney Jerry Myers at Smith, Debnam, Narron, Drake Saintsing & Myers, LLP for his efforts to block the Bill.

The Bill sections that will affect debt buyers are as follows:

1. It will be deemed unfair to bring suit or collect at all on debt past the statute of limitations.
2. To file suit, valid documentation including an itemized accounting and proof of ownership of the debt must be filed.
3. Thirty (30) days written notice must be given prior to suit.
4. Penalties not less than $500.00 per violation up to $4,000.00.
5. Attorney's fees will not be awarded absent a signed writing and an unbroken chain of assignment.

THE EFFECTIVE DATE IS OCTOBER 1, 2009 FOR ALL COLLECTION ACTIVITIES AFTER THAT DATE.

For a copy of the ratified Bill, please click here.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.