NC H76

Recodifies debt adjusting and debt settlement provisions from Chapter 14 to Chapter 75 of North Carolina General Statutes and makes violations an unfair trade practice.

Prohibits any person from engaging in, offering to engage in, or attempting to engage in debt adjusting or debt settlement, either directly or through affiliates.

Maintains criminal penalty of Class 2 misdemeanor for violations and expands civil remedies allowing superior courts to enjoin violations, appoint receivers, assess civil penalties under G.S. 75-15.2, and award attorneys' fees to the State.

Establishes fee limits for legitimate credit counseling organizations providing debt management services: $40 maximum for origination or setup and 10% of monthly payments not to exceed $40 per month.

Exempts certain activities from debt adjusting or debt settlement prohibitions, including creditors acting without cost, attorneys licensed in North Carolina (excluding those with debt settlement arrangements), and accredited credit counseling organizations meeting specified requirements.

Declares all contracts for debt adjusting or debt settlement void as against public policy.

Effective July 1, 2021, applying to offenses committed on or after that date.