NC S767

Rewrites G.S. 6-21.2 to clarify when creditors may enforce obligations to pay attorneys' fees in debt instruments (notes, conditional sale contracts, lease agreements, credit agreements, and similar instruments).

Establishes that attorneys' fees are valid and enforceable only if a creditor uses an attorney to collect after a debtor defaults and complies with all requirements, with a maximum cap of 15% of principal and interest owed or 15% of time price balance for conditional sale contracts.

Requires creditors to provide written notice to debtors before enforcing attorneys' fees, giving debtors 14 days to pay the outstanding balance without the additional fees; exception applies to secured debts where debtor refuses to surrender collateral.

Mandates that assignees and debt buyers must provide the court with documentation including the original debt contract with the defendant's signature and an unbroken chain of ownership showing assignment transfers.

Effective date is October 1, 2024, and applies only to debt instruments executed on or after that date.