Accounts receivable management industry experts say that the recently approved North Carolina law — SB 974, which will go into effect October 1, barring an unexpected governor’s veto — will have harmful unintended consequences on consumers along with an unknown impact on debt buyers.
The bill incorporates a debt buyer under the definition of a collection agency and specifically defines a debt buyer as a person or entity engaged in the business of purchasing delinquent or charged-off consumer loans or consumer credit accounts for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney-at-law for litigation in order to collect such debt. SB 974 dictates that both active and passive asset buyers are defined as a collection agency ("North Carolina Legislation Targets Asset Buyers, Impacts Debt Collectors," Aug. 24).
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