North Carolina was third in the nation for credit card debt as of 2010, according to an article on News-Record.com by the Herald-Sun of Durham. You may be one of the millions of North Carolinians with credit card debt. You may also be worried about what will happen if you fail to pay off your card debt and other unsecured debt. Nothing can replace advice from a competent attorney, but arming yourself beforehand with information about North Carolina law is a good idea.
Statute of Limitations
The statute of limitations is the maximum time that your creditor has to collect a debt. A creditor may sue you for unpaid unsecured debt after this time has elapsed, but you may use the statute of limitations as a defense in court. North Carolina's statute of limitations for unsecured debt is three years. The clock starts ticking when you make your last payment or make your last charge. Creditors may sue for debts acquired in the last three years.
Garnishment
Your creditors may sue you in court for unsecured debt. If you lose this case and still fail to pay, your creditors may seek a writ of garnishment. This deducts a portion of what you owe directly from your wages. This is rare for credit card debt in North Carolina, but you may have your wages garnished for other unsecured debt such as unpaid taxes, medical bills or child support.
Illegal Collection Practices
Your creditors must operate within the bounds of North Carolina law when collecting a debt. State law defines a number of practices as illegal. These include threats such as violence and false threats of prosecution or arrest. Harassing behaviors such as profanity, obscenity, annoyingly frequent telephone calls and attempting to contact a person at her place of business after an explicit request not to do so are also illegal under North Carolina law.
Redress
State law provides for legal redress for those who have been the victim of unscrupulous lenders. You may sue the creditor or collection agency for the sum of any actual damage, plus punitive damages between $500 and $4,000 for each infraction as of 2010. The Attorney General of North Carolina may also levy penalties of up to $4,000 for each infraction in addition to whatever you collect.
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