If Prince Parker & Associates contacts you concerning an outstanding debt, you enjoy the legal protections granted by the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Fair Debt Collection Practices Act (NCFDCPA).
Like many other states, North Carolina has expanded the legal protections granted to consumers. One section of the FDCPA the NCFDCPA strengthens addresses the threats debt collectors make to consumers for the sole purpose of collecting delinquent debts.
According to the NCFDCPA, third party debt collectors cannot issue the following threats:
- Threat to use violence
- Threat to initiate legal action
- Threat to assign a debt to another collection agency
- Threat to submit false allegations to a credit reporting bureau
- Threat to arrest
What Does Statute of Limitations Mean?
You are probably familiar with the legal term statute of limitations as it applies to criminal law. The same principle also applies to debt collectors. Third party debt collectors have a limited amount of time to sue consumers for the collection of delinquent debts.
In North Carolina, the statute of limitations for third party debt collectors is three years for installment loans, promissory notes, and credit card debt. The statute of limitations clock begins to tick the last time you made a transaction on a credit account.
Charging Fees and Interest on Outstanding Debts
Many third party debt collectors add fees and interest charges to debts owed to original creditors. North Carolina prohibits the charging of additional fees and interest unless a third party debt collector is “legally entitled to such fees and interest charges.”
In other words, if you agreed to extra fees and interest charges in the agreement with the original creditor, a collector can pad your debt by adding fees and interest.
Can a Debt Collector Garnish Your Wages?
Most states limit wage garnishments to a specific percentage of disposal income. In North Carolina, state law places more restrictions on wage garnishments by narrowly defining the types of debts third party debt collectors can garnish.
For consumers that owe credit card and personal loan debt, debt collectors cannot win a judgment to garnish wages. Examples of debts eligible for wage garnishment in North Carolina include taxes, alimony, child support, and student loans.
There does not appear to be any momentum in the state legislature to amend the wage garnishment law to include consumer debts.
Speak with a Licensed Attorney
Debt collection agencies like Prince Parker & Associates understand how to bend debt collection laws in their favor. When an agency such as Prince Parker & Associates contacts you, the time has come to speak with a licensed attorney who has considerable experience litigating FDCPA and NCFDCPA cases.
With the clock ticking on the statute of limitations, you need to work with an attorney that understands how to beat aggressive debt collectors.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Prince Parker & Associates or any other third-party collection agency, you may not be entitled to any compensation.