State News

Perdue signs consumer protection law

Posted September 9, 2009
Updated September 15, 2009

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— North Carolina consumers soon will have new protections from foreclosures and intimidating debt collection practices.

Gov. Beverly Perdue Wednesday signed into law Wednesday a bill approved by the Legislature last month and backed by Attorney General Roy Cooper.

The Consumer Economic Protection Act allows a clerk of court to continue a foreclosure hearing for up to 60 days. The delay would give a homeowner more time to work out a payment plan with the mortgage holder or service so the debtor can remain in the home.

“When a home is foreclosed, it’s bad for our families, it’s bad for our communities, it’s bad for our businesses, and it’s bad for North Carolina,” Perdue said. “This bill makes it easier for homeowners to work out a deal with their lenders and avoid foreclosure.”

The law also standardizes the amount of bond required from those fighting foreclosure in the courts. The bond it set at one percent of the balance due on the loan. Previously, some homeowners were asked to put up a bond equal to the entire loan balance, said Chrissy Pearson, a spokeswoman for Perdue.

“Everybody loses when a foreclosure happens,” Cooper said. “Giving homeowners and lenders more time to find solutions can save homes, neighborhoods and money.”

The law also sets out new rules for debt buyers, a new type of debt collector buys up collectable debt such as unpaid credit card bills. Cooper has said some debt buyers have gone too far in browbeating people to collect money.

Debt buyers must be able to prove they have the right to collect the debt and be able to verify the amount owed. They are also prohibited from filing or threatening to file suit once the statute of limitations is passed on debts.

43 Comments

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  • exwife1956 Sep 9, 2009

    You people think you know it all.... The reason people are loosing their homes is because of our government leaders taking jobs and doing whatever they want to with our money.....

  • SomeRandomGuy Sep 9, 2009

    "Cooper has said some debt buyers have gone too far in browbeating people to collect money.

    Debt buyers must be able to prove they have the right to collect the debt and be able to verify the amount owed. They are also prohibited from filing or threatening to file suit once the statute of limitations is passed on debts."

    This is already covered under FEDERAL law, so this "new" law is just duplication of existing laws and a complete waste of time at the state level.

  • ifcdirector Sep 9, 2009

    How about signing a law protecting me the consumer from the biggest bunch of robbers in North Carolina history that being the democrats in the legislature?

  • smith999542 Sep 9, 2009

    Close GOLO..!!!!!!!!!!!!!!

  • commandokidd Sep 9, 2009

    wow, a bunch of know-it-alls in here.

  • Thought Criminal WS Sep 9, 2009

    "Yep, personal responsibility goes along way. OK, so you got laid off, get out there and flip burgers, deliver pizza's, what ever it takes." miketroll3572

    AMEN. Been there - washed dishes, cleaned bathroom, moved boxes, scrubbed funk, flipped burgers... when I'm out of work my job is to find a job, put 8 hours a day in until you find something - otherwise, you're not trying hard enough.

  • beachboater Sep 9, 2009

    Censors are thin skinned today. :-(

  • Here kitty kitty Sep 9, 2009

    Well not EVERYBODY loses in a foreclosure. I bought my home as a foreclosure and got an excellent deal. It's now worth several thousand more than I paid. I feel sorry for the person who lost it but I wasn't going to pass it up.

  • DontLikeTheSocialistObama Sep 9, 2009

    "So if I get laid off my job b/c the market is slow and cant afford to pay my mortgage, thats my fault? I hope you lose your job so you will feel how about how most of the families in NC feel. - commandokidd"

    Seeing that unemployment is roughly 10% in North Carolina, thank you for another gross exaggeration from the liberal left.

    Don't trust anyone who uses absolutes like most in a discussion. People who use absolutes in making their argument are exaggerators.

    P.S. - making it harder for creditors to recoup their money in North Carolina will make it harder to get a loan or credit card in North Carolina.

    Banks and Credit Card companies aren't charities. Look at how much interest rates and fees on credit cards have gone up since the Congress passed the Credit Card Bill of Rights.

    Banks will always get there's. One way or the other.

  • fbcoachgeorge Sep 9, 2009

    Bev really helped teachers, she put education back 20 years!! Maybe signing this bill will clear her concious about purchasing $60.00 egg rolls in China. Always willing to help NC home owners huh Bev.

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