GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2017-149
SENATE BILL 415
AN ACT to clarify the definition of collection agency to exclude persons engaged in routine billing services.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58‑70‑15 reads as rewritten:
"§ 58‑70‑15. Definition of collection agency and collection agency business.
(a) "Collection agency" means a person directly or indirectly engaged in soliciting, from more than one person delinquent claims of any kind owed or due or asserted to be owed or due the solicited person and all persons directly or indirectly engaged in the asserting, enforcing or prosecuting of those claims.
agency" does not
mean:include any of the following:
(1) Regular employees of a
(2) Banks, trust companies,
or bank owned, controlled or related
firms, corporations or associations
engaged in accounting, bookkeeping or data processing services where a primary
component of such services is the rendering of statements of accounts and
bookkeeping services for creditors;firms.
(2a) Corporations or associations engaged in accounting, bookkeeping, or data processing services where a primary component of such services is the rendering of statements of accounts and bookkeeping services for creditors.
(3) Mortgage banking
(4) Savings and loan
(5) Building and loan
(6) Duly licensed real estate
brokers and agents when the claims or accounts being handled by the broker or
agent are related to or are in connection with the broker's or agent's regular
(7) Express, telephone and
telegraph companies subject to public regulation and
handling claims and collections in their own name and not operating a
collection agency under the management of a
(9) Any person, firm,
corporation or association handling claims, accounts or collections under an
order or orders of any
(10) A person, firm,
corporation or association which, for valuable consideration purchases
accounts, claims, or demands of another, which such accounts, claims, or
demands of another are not delinquent at the time of such purchase, and then,
in its own name, proceeds to assert or collect the accounts, claims or
(11) Any person attempting to
collect or collecting claims, in that person's name, of a business or
businesses owned wholly or substantially by that
(12) Any nonprofit tax exempt
corporation organized for the purpose of providing mediation or other dispute
(13) The designated representatives of programs as defined by G.S. 110‑129(5)."
SECTION 2. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 27th day of June, 2017.
s/ Daniel J. Forest
President of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Roy Cooper
Approved 4:18 p.m. this 20th day of July, 2017