I Introduction: Statutory Frameworks for Federal and State Law relating to the collection of debts based on “consumer transactions.”
Federal Law: The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., was enacted in 1978 as Title VIII of the Consumer Credit Protection Act. Commonly referred to as “The Fair Debt Collection Practices Act.”
North Carolina State law: Prohibited Acts by Debt Collectors, N.C.G.S. § 75-50 et seq., was enacted in 1989 (Chapter 75, Article 2, Prohibited Acts by Debt Collectors under the Unfair and Deceptive Trade Practices Act). Sometimes referred to as “The North Carolina Debt Collection Act.”
II Important Distinctions between the federal Fair Debt Collection Practices Act and North Carolina’s state law Debt Collection Act:
The FDCPA generally applies to any person who is in the business of debt collection from a consumer for another (ie collection agency collecting debts for a bank or credit union) but exempts any creditor collecting his own accounts.
No “learned profession exemption” under the FDCPA. Means the FDCPA applies to attorneys attempting to collect debts for another.
The North Carolina Debt Collection Act applies to any person engaged in debt collection from the consumer. There is no exemption for a creditor attempting to collect his own accounts.
There is a “learned profession exemption” under the NCDCA.
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