Many individuals receive calls from collection agencies that have purchased debt from creditors or other commercial collection agencies. These debt buyers purchase old debt for pennies on the dollar hoping to collect on debt that others had been unable to recover. Under North Carolina law, a debt buyer is a person or entity who purchases delinquent or charged-off consumer loans, receivables or other consumer or retail debt.In North Carolina, debt buyers are prohibited from collecting time-barred debt or a debt that is otherwise unrecoverable as a matter of law unless the collection agency informs the consumer/debtor that the debt is time-barred or otherwise recoverable.
Collection agencies and debt buyers are also prohibited from threatening to file a lawsuit or initiate an arbitration action if the debt is time-barred. If the collection agency does file suit, they must give 45 days notice before doing so. Additionally, debt buyers are required to show valid documentation that the debt buyer is the owner of the debt instrument or account.
If a collection agency is contacting you regarding old debt – particularly debt that is more than 3 years old – contact the debt collection attorneys of Maginnis Law, PLLC at 919.526.0450 to discuss your options. Maginnis Law, PLLC is a Raleigh civil litigation law firm that handles cases in Cary, Apex, Durham, Morrisville, and the rest of the Triangle area. The firm is experienced in representing businesses who seek to collect funds from debtors as well as consumers who have been wrongfully harassed by collection agencies. Contact the firm for a free initial consultation or submit a new case inquiry here to speak with a civil business litigation attorney about your issue.