GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 34
Second Edition Engrossed 3/14/91

Short Title:  Debt Collection Penalty Up.	(Public)
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Sponsors: Representatives Hasty, Easterling, Ligon, Lineberry, Privette, Woodard; and Warner.
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Referred to:  Judiciary I.
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February 11, 1991

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE PENALTIES FOR VIOLATIONS OF THE DEBT COLLECTION PRACTICES ACTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 75-56 reads as rewritten: 
"§ 75-56.  Application.
The specific and general provisions of this Article shall exclusively constitute the unfair or deceptive acts or practices proscribed by G.S. 75-1.1 in the area of commerce regulated by this Article.  Notwithstanding the provisions of G.S. 75-15.2 and 75-16, in private actions or actions instituted by the Attorney General, civil penalties in excess of one thousand dollars ($1,000) for each violation shall not be imposed, nor shall damages be trebled for any violation under this Article."
Sec. 2.  G.S. 58-70-130 reads as rewritten:
"§ 58-70-130.  Civil liability.
(a)	Any collection agency which violates Part 3 of this Article with respect to any debtor shall be liable to that debtor in an amount equal to the sum of any actual damages sustained by the debtor as a result of the violation.
(b)	Any collection agency which violates Part 3 of this Article with respect to any debtor shall, in addition to actual damages sustained by the debtor as a result of the violation, also be liable to the debtor only in an individual action, and its additional liability therein to that debtor shall be for a penalty in such amount as the court may allow, which shall not be less than one hundred dollars ($100.00) for each violation nor greater than one thousand dollars ($1,000) for each violation.
(c)	The specific and general provisions of Part 3 shall constitute unfair or deceptive acts or practices proscribed herein or by G.S. 75-1.1 in the area of commerce regulated thereby.  Notwithstanding the provisions of G.S. 75-15.2 and 75-16, civil penalties in excess of one thousand dollars ($1,000) for each violation shall not be imposed, nor shall damages be trebled for any violation under Part 3.
(d)	The remedies provided by this section shall be cumulative, and in addition to remedies otherwise available. Provided, that any punitive damages assessed against a collection agency shall be reduced by the amount of the civil penalty assessed against such agency pursuant to subsection (b)."
Sec. 3.  This act is effective upon ratification and applies to actions brought on or after that date.