What are the rules for debt collection in different states?

The rules for debt collection in different states vary, depending on the state. In North Carolina, the primary laws governing debt collection are the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Collection Practices Act (NCCPA). Under the FDCPA, debt collectors must abide by certain rules when attempting to collect a debt from consumers. These rules include being honest and clear in all communications, notifying consumers of their rights, refraining from harassing or abusive behavior, and ceasing all communication if the consumer requests it in writing. Debt collectors may not call or contact a consumer at inconvenient times (generally before 8 a.m. or after 9 p.m.), or use any unfair or deceptive means to collect a debt. Additionally, under the NCCPA, debt collectors may not threaten or use violence, publish a person’s name regarding nonpayment of a debt, falsely state that the consumer committed a crime, or communicate with the consumer’s employer (except to verify the person’s employment). Debt collectors may not contact third parties or make false representations in an attempt to collect a debt. Finally, it is important to remember that consumer debts may not be collected after they have become time-barred under North Carolina law. A debt is typically considered time-barred after three years from the date of last delinquency. Once a debt is time-barred, the consumer no longer has any legal obligation to repay it.

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