North Carolina law prohibits a collection agency from using threats and coercion while attempting to collect a debt. If a collection agency does use such threats and coercion, the debtor may file a civil lawsuit to pursue actual damages, such as emotional pain and suffering, as well as a statutory penalty of anywhere between $500.00 $4,000.00 per violation. This “per violation” likely does not mean per threat, but it does mean per phone call that contains a threat. The North Carolina FDCPA attorneys of Maginnis Howard are experienced in representing debtors in such civil lawsuits. We regularly take cases against creditors on a contingency basis, meaning that you pay no attorneys’ fees unless we recover money damages for you.
What is a Collection Agency?
A collection agency is defined by North Carolina law to include independent agencies that pursue the debts of other companies. Additionally, the term includes debt buyers and in-house collection agencies. Such agencies are required to obtain a permit to collect debt within the state of North Carolina. Failure to do so can subject them to criminal and civil liability.
What Can’t a Collection Agency Do?
Even permitted collection agencies violate North Carolina law when they “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.” The statute, N.C.G.S. § 58-70-95, lists examples of such conduct, including:
- Using or threatening to use violence or any illegal means to cause harm to the person, reputation, or property of any person.
- 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.
- 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.
- 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 would lose any defense to the debt or would be subject to harsh, vindictive, or abusive collection attempts.
- Representing that nonpayment of an alleged debt may result in the arrest of any person.
- 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 contemplated by the debt collector and permitted by law.
- Threatening to take any action not 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.
- Threatening to take any action not permitted by law.
Experienced Debt Collection Harassment Lawyers
While the list provided by the statute is extensive, it is not exhaustive. If a collection agency has threatened you with unlawful conduct or another action it does not intend to take, you may still have a valid unfair debt collection claim. If you believe a collection agency has used threats or coercion in an attempt to collect a debt, contact our consumer attorneys today.
Maginnis Howard is an experienced personal injury and consumer protection law firm offering free consultations. Our firm regularly represents debtors in unfair debt collection cases across the Carolinas. We serve clients from our Raleigh, Charlotte, and Fayetteville offices. To schedule your free consultation, call (919) 526-0450 or visit our contact page for more information.
