NC H734

Prohibits debt adjusting and debt settlement services in North Carolina, making violations a Class 2 misdemeanor and an unfair trade practice under G.S. 75-1.1

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

Authorizes the Attorney General or district attorneys to seek injunctions, appoint receivers to recover debtor funds, assess civil penalties, and obtain attorneys' fees

Exempts licensed attorneys acting within attorney-client relationships, creditors acting without cost to debtors, court-appointed persons, and accredited nonprofit credit counseling organizations meeting specific requirements

Caps fees for exempt credit counseling organizations at $40 for plan setup and 10% of monthly payments (not to exceed $40/month), effective July 1, 2025