Source: http://www.jdsupra.com/post/documentViewer.aspx?fid=ff412ab0-48db-4a1b-a10e-45c2cddf011d
Timestamp: 2014-07-10 15:32:08
Document Index: 499043931

Matched Legal Cases: ['§ 1692', '§ 75', '§ 1692', '§ 75', '§ 1692', '§ 1692', '§ 1692', '§ 1692', '§ 1692', '§ 1692', '§ 1692', '§ 6801', '§ 1692', '§ 1692', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75']

Fair Debt Collection Practices | Nexsen Pruet, PLLC - JDSupra
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.
Download PDF Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh Fair Debt Collection Practices Brooks Bossong June 9, 2011 Click here to view the webinar. Click here to view the PowerPoint slides. Click here for a copy of the handouts. FAIR DEBT COLLECTION PRACTICES 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. III FDCPA Overview (Relevant Statutes): 15 U.S.C.A. § 1692(e) It is the purpose of this subchapter to eliminate abusive debt collection practices by debt collectors… § 1692a. Definitions As used in this subchapter--(1) The term “Commission” means the Federal Trade Commission. Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (2) The term “communication” means the conveying of information regarding a debt directly or indirectly to any person through any medium. (3) The term “consumer” means any natural person obligated or allegedly obligated to pay any debt. (4) The term “creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another. (5) The term “debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment. (6) The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 1692f(6) of this title, such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include--(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor 1692b. Acquisition of location information Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall--(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer; (2) not state that such consumer owes any debt; (3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information; (4) not communicate by post card; (5) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and (6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh to communication from the debt collector. § 1692c. Communication in connection with debt collection (a) Communication with the consumer generally Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt--(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antemeridian and before 9 o'clock postmeridian, local time at the consumer's location; (2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or (3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication. (b) Communication with third parties Except as provided in section 1692b of this title, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector. (c) Ceasing communication If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except--(1) to advise the consumer that the debt collector's further efforts are being terminated; (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. If such notice from the consumer is made by mail, notification shall be complete upon receipt. Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (d) “Consumer” defined For the purpose of this section, the term “consumer” includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator. § 1692d. Harassment or abuse A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person. (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. (3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 1681a(f) or 1681b(3) of this title. (4) The advertisement for sale of any debt to coerce payment of the debt. (5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. (6) Except as provided in section 1692b of this title, the placement of telephone calls without meaningful disclosure of the caller's identity. § 1692e. False or misleading representations A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof. (2) The false representation of--(A) the character, amount, or legal status of any debt; or (B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt. (3) The false representation or implication that any individual is an attorney or that any communication is from an attorney. Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. (5) The threat to take any action that cannot legally be taken or that is not intended to be taken. (6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to--(A) lose any claim or defense to payment of the debt; or (B) become subject to any practice prohibited by this subchapter. (7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer. (8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. (9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval. (10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer. (11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action. (12) The false representation or implication that accounts have been turned over to innocent purchasers for value. (13) The false representation or implication that documents are legal process. (14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization. (15) The false representation or implication that documents are not legal process forms or do not require action by the consumer. (16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 1681a(f) of this title. § 1692f. Unfair practices A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. (2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit. (3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution. (4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. (5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees. (6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if-(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest; (B) there is no present intention to take possession of the property; or (C) the property is exempt by law from such dispossession or disablement. (7) Communicating with a consumer regarding a debt by post card. (8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business. § 1692g. Validation of debts (a) Notice of debt; contents Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing--(1) the amount of the debt; (2) the name of the creditor to whom the debt is owed; (3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector; (4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and (5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. (b) Disputed debts If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection (a) of this section unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer's right to dispute the debt or request the name and address of the original creditor. (c) Admission of liability The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer. (d) Legal pleadings A communication in the form of a formal pleading in a civil action shall not be treated as an initial communication for purposes of subsection (a) of this section. (e) Notice provisions The sending or delivery of any form or notice which does not relate to the collection of a debt and is expressly required by the Internal Revenue Code of 1986, chapter 94 of this title [15 U.S.C.A. § 6801 et seq.], or any provision of Federal or State law relating to notice of data security breach or privacy, or any regulation prescribed under any such provision of law, shall not be treated as an initial communication in connection with debt collection for purposes of this section. § 1692i. Legal actions by debt collectors (a) Venue Any debt collector who brings any legal action on a debt against any consumer shall--(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity--(A) in which such consumer signed the contract sued upon; or (B) in which such consumer resides at the commencement of the action. (b) Authorization of actions Nothing in this subchapter shall be construed to authorize the bringing of legal actions by debt collectors. § 1692k. Civil liability (a) Amount of damages Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter with respect to any person is liable to such person in an amount equal to the sum of--(1) any actual damage sustained by such person as a result of such failure; (2)(A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or (B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and (3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs. (b) Factors considered by court In determining the amount of liability in any action under subsection (a) of this section, the court shall consider, among other relevant factors--(1) in any individual action under subsection (a)(2)(A) of this section, the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or (2) in any class action under subsection (a)(2)(B) of this section, the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional. (c) Intent Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh A debt collector may not be held liable in any action brought under this subchapter if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. (d) Jurisdiction An action to enforce any liability created by this subchapter may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs. (e) Advisory opinions of Commission No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. IV The North Carolina Debt Collection Act (Relevant Statutes): N.C.G.S. § 75-50. Definitions The following words and terms as used in this Article shall be construed as follows: (1) “Consumer” means any natural person who has incurred a debt or alleged debt for personal, family, household or agricultural purposes. (2) “Debt” means any obligation owed or due or alleged to be owed or due from a consumer. (3) “Debt collector” means any person engaging, directly or indirectly, in debt collection from a consumer except those persons subject to the provisions of Article 70, Chapter 58 of the General Statutes. § 75-51. Threats and coercion No debt collector shall collect or attempt to collect any debt alleged to be due and owing from a consumer by means of any unfair threat, coercion, or attempt to coerce. Such unfair acts include, but are not limited to, the following: (1) Using or threatening to use violence or any illegal means to cause harm to the person, reputation or property of any person. (2) Falsely accusing or threatening to accuse any person of fraud or any crime, or of any conduct that would tend to cause disgrace, contempt or ridicule. (3) Making or threatening to make false accusations to another person, including any credit reporting agency, that a consumer has not paid, or has willfully refused to pay a just debt. (4) Threatening to sell or assign, or to refer to another for collection, the debt of the consumer with an attending representation that the result of such sale, assignment or reference would be that the consumer Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh would lose any defense to the debt or would be subjected to harsh, vindictive, or abusive collection attempts. (5) Representing that nonpayment of an alleged debt may result in the arrest of any person. (6) Representing that nonpayment of an alleged debt may result in the seizure, garnishment, attachment, or sale of any property or wages unless such action is in fact contemplated by the debt collector and permitted by law. (7) Threatening to take any action not in fact taken in the usual course of business, unless it can be shown that such threatened action was actually intended to be taken in the particular case in which the threat was made. (8) Threatening to take any action not permitted by law. § 75-52. Harassment No debt collector shall use any conduct, the natural consequence of which is to oppress, harass, or abuse any person in connection with the attempt to collect any debt. Such unfair acts include, but are not limited to, the following: (1) Using profane or obscene language, or language that would ordinarily abuse the typical hearer or reader. (2) Placing collect telephone calls or sending collect telegrams unless the caller fully identifies himself and the company he represents. (3) Causing a telephone to ring or engaging any person in telephone conversation with such frequency as to be unreasonable or to constitute a harassment to the person under the circumstances or at times known to be times other than normal waking hours of the person. (4) Placing telephone calls or attempting to communicate with any person, contrary to his instructions, at his place of employment, unless the debt collector does not have a telephone number where the consumer can be reached during the consumer's nonworking hours. § 75-53. Unreasonable publication No debt collector shall unreasonably publicize information regarding a consumer's debt. Such unreasonable publication includes, but is not limited to, the following: (1) Any communication with any person other than the debtor or his attorney, except: a. With the written permission of the debtor or his attorney given after default; b. To persons employed by the debt collector, to a credit reporting agency, to a person or business employed to collect the debt on behalf of the creditor, or to a person who makes a legitimate request for the information; c. To the spouse (or one who stands in place of the spouse) of the debtor, or to the parent or guardian of the debtor if the debtor is a minor and lives in the same household with such parent; Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh d. For the sole purpose of locating the debtor, if no indication of indebtedness is made; e. Through legal process. (2) Using any form of communication which ordinarily would be seen or heard by any person other than the consumer that displays or conveys any information about the alleged debt other than the name, address and phone number of the debt collector except as otherwise provided in this Article. (3) Disclosing any information relating to a consumer's debt by publishing or posting any list of consumers, except for credit reporting purposes and the publication and distribution of otherwise permissible “stop lists” to the point-of-sale locations where credit is extended, or by advertising for sale any claim to enforce payment thereof or in any other manner other than through legal process. § 75-54. Deceptive representation No debt collector shall collect or attempt to collect a debt or obtain information concerning a consumer by any fraudulent, deceptive or misleading representation. Such representations include, but are not limited to, the following: (1) Communicating with the consumer other than in the name (or unique pseudonym) of the debt collector and the person or business on whose behalf the debt collector is acting or to whom the debt is owed. (2) Failing to disclose in all communications attempting to collect a debt that the purpose of such communication is to collect a debt. (3) Falsely representing that the debt collector has in his possession information or something of value for the consumer. (4) Falsely representing the character, extent, or amount of a debt against a consumer or of its status in any legal proceeding; falsely representing that the collector is in any way connected with any agency of the federal, State or local government; or falsely representing the creditor's rights or intentions. (5) Using or distributing or selling any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by a court, an official, or any other legally constituted or authorized authority, or which creates a false impression about its source. (6) Falsely representing that an existing obligation of the consumer may be increased by the addition of attorney's fees, investigation fees, service fees, or any other fees or charges. (7) Falsely representing the status or true nature of the services rendered by the debt collector or his business. (8) Communicating with the consumer in violation of the provisions of G.S. 62-159.1(a), 153A-277(b1), or 160A-314(b1). § 75-55. Unconscionable means No debt collector shall collect or attempt to collect any debt by use of any unconscionable means. Such means include, but are not limited to, the following: Nexsen | Pruet -www.nexsenpruet.com Offices throughout the Carolinas: Charleston | Charlotte | Columbia | Greensboro | Greenville | Hilton Head | Myrtle Beach | Raleigh (1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver. (2) Collecting or attempting to collect from the consumer all or any part of the debt collector's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge. (3) Communicating with a consumer (other than a statement of account used in the normal course of business) whenever the debt collector has been notified by the consumer's attorney that he represents said consumer. (4) Bringing suit against the debtor in a county other than that in which the debt was incurred or in which the debtor resides if the distances and amounts involved would make it impractical for the debtor to defend the claim. § 75-56. Application (a) The specific and general provisions of this Article shall exclusively constitute the unfair or deceptive acts or practices proscribed by G.S. 75-1.1 in the area of commerce regulated by this Article. (b) Any debt collector who fails to comply with any provision of this Article with respect to any person is liable to such person in a private action in an amount equal to the sum of (i) any actual damage sustained by such person as a result of such failure and (ii) civil penalties the court may allow, but not less than five hundred dollars ($500.00) nor greater than four thousand dollars ($4,000) for each violation. (c) The remedies provided by this section shall be cumulative and in addition to remedies otherwise available. Any punitive damages assessed against a debt collector shall not be reduced by the amount of the civil penalty assessed against such debt collector pursuant to subsection (d) of this section. (d) Notwithstanding the provisions of G.S. 75-15.2 and G.S. 75-16, in private actions or actions instituted by the Attorney General, civil penalties in excess of four thousand dollars ($4,000) shall not be imposed. (e) The clear proceeds of civil penalties imposed in actions instituted by the Attorney General shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
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