NC S491

Requires persons providing debt settlement services in North Carolina to obtain a license from the Commissioner of Banks, with a $2,000 application fee and $1,000,000 surety bond requirement

Prohibits licensees from charging fees until they have successfully negotiated at least one debt and the debtor has made at least one payment; maximum fees capped at 15% of principal debt amount or 20% of savings achieved

Restricts enrollment to debts at least 60 days delinquent and at least 180 days old; bars enrollment of active duty military members ranked E4 or below

Exempts banks, credit unions, savings institutions, licensed attorneys, nonprofit credit counseling organizations meeting IRS requirements, and debt management organizations from licensing requirements

Creates enforcement mechanisms including civil penalties up to $1,000 per violation, private right of action with attorneys' fees, Class 3 misdemeanor criminal penalties, and authority for the Attorney General to seek injunctions and restitution; effective January 1, 2026