What are the guidelines for debt settlement under law?

Debt settlement under North Carolina law is governed by the North Carolina Collection Laws. The North Carolina Collection Laws are designed to protect consumers from unfair debt collection practices. Under North Carolina law, debt collectors must adhere to certain guidelines when attempting to collect on a debt. First, the debt collector must provide the consumer with written notice of the debt. This notice must include the original creditor’s name, the amount owed, and the date the debt became due. The notice must also include the debt collector’s name, address, and phone number. Second, debt collectors are prohibited from making threats, using abusive language, or contacting the consumer before 8:00am or after 9:00pm. This also applies to third-party debt collectors as well. Once the debt collector has contacted the consumer, they must cease contact if the consumer requests it. Third, debt collectors are not allowed to engage in false or deceptive tactics to collect a debt. This includes misrepresenting the amount owed, claiming to be an attorney or law enforcement officer, or falsely claiming to be an employee of the consumer’s original creditor. Finally, if the consumer and debt collector agree on a debt settlement, the debt collector must provide the consumer with a written confirmation of the agreement. This confirmation must include the terms of the settlement, a description of the debt, and the creditor’s name. The debt collector must also provide the consumer with a written receipt that the debt has been paid in full.

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What are the guidelines for debt settlement under law?

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