NC H481

Recodifies Article 56 of Chapter 14 (debt adjusting) as Article 9 of Chapter 75 of the General Statutes and expands the prohibition to include debt settlement practices.

Prohibits any person, directly or through affiliates, from engaging in, offering to engage in, or attempting to engage in debt adjusting or debt settlement, making violations a Class 2 misdemeanor.

Designates debt settlement violations as unfair trade practices subject to civil penalties under G.S. 75-15.2, allows courts to appoint receivers for debtor funds, and permits attorneys' fees to be awarded to the State.

Maintains certain authorized transactions exempt from the debt adjusting prohibition, including services by creditors at no cost, court-ordered arrangements, attorney services within attorney-client relationships, and nonprofit credit counseling organizations meeting specific requirements including maximum fees of $40 origination plus 10% monthly payment capped at $40/month.

Declares all contracts for debt adjusting or debt settlement void as against public policy and establishes July 1, 2023 as the effective date.