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2/22/10
Consumer Economic Protection Act of 2009
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On September 9, 2009, the livelihood of debt buyers (persons or companies who acquire delinquent or charged-off debts and seek to recover on these debts) in North Carolina was dealt a big blow by the North Carolina General Assembly. The Consumer Economic Protection Act of 2009 requires debt buyers filing lawsuits on unpaid debts to provide specific documentation showing they have the legal right to enforce the debt. Additionally, the Act requires debt buyers to verify the amount of the debt. The Act places the burden of proof on the debt buyer from the very beginning of an unpaid debt lawsuit. Violations of the Act can result in dismissal of the lawsuit and provision of monetary damages to the debtor.
Unfortunately, debt buyers, agencies, and collectors who filed suits prior to October 1, 2009 are not subject to the Act and many use this fact to take advantage of unsuspecting debtors. These debt collectors often lack many of the documents and evidence to fully prove the nature and amount of the debt they claim they are owed. Often debt buyers try to recover on debts that are outside of the statute of limitations or that were paid in full by the debtor. Even in the case of legitimate debts the debt collectors sometimes play fast and loose with the facts and the law in an effort to obtain judgments and exert further pressure on the debtor. The new law, which can be viewed here, is meant to help level the playing field for the debtor and encourage fair debt collection practices by debt buyers and collectors.
We should all pay our legitimate debts but debtors have rights too. State and federal law provide certain protections for the debtor and attempt to even the playing field. If you feel that you are being abused or harassed by a debt collector do not give in to the pressure and agree to pay the debt. Contact an experienced lawyer and discuss your situation.
Posted by liz at February 22, 2010 6:24 AM MST
