What types of collection practices are illegal?

In North Carolina, it is illegal for debt collectors to engage in any unfair or deceptive practices while attempting to collect a debt. This includes threatening to take action that cannot legally be taken, harassing the debtor or using profanity or otherwise abusing the debtor. It is illegal for collectors to use false, deceptive, or misleading representations or means in connection with the collection of any debt and to suggest that failure to pay the debt will result in arrest or imprisonment. Collectors are prohibited from contacting consumers at their place of employment if they are notified that the contact is unwelcome. Finally, debt collectors may not make false statements or threaten to publish the debtor’s name or other identifying information in order to collect a debt. These protections, known as Collection Defense Law, are in place to protect the rights of consumers in North Carolina. Violations of the law can result in substantial civil penalties for the debt collector and compensation to the consumer. Additionally, debt collectors can be held accountable for any actual damages and attorney’s fees as provided by the law. Therefore, it is important that consumers understand their rights and speak to an attorney if they feel their rights under this law have been violated.

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