§ 14-426. Certain persons and transactions not deemed debt adjusters or debt adjustment. - North Carolina Statutes

§ 14‑426.  Certainpersons and transactions not deemed debt adjusters or debt adjustment.

The following individuals ortransactions shall not be deemed debt adjusters or as being engaged in thebusiness or practice of debt adjusting:

(1)        Any person or individualwho is a regular full‑time employee of a debtor, and who acts as anadjuster of his employer's debts.

(2)        Any person orindividual acting pursuant to any order or judgment of a court, or pursuant toauthority conferred by any law of this State or of the United States.

(3)        Any person who is acreditor of the debtor, or an agent of one or more creditors of the debtor, andwhose services in adjusting the debtor's debts are rendered without cost to thedebtor.

(4)        Any person who atthe request of a debtor, arranges for or makes a loan to the debtor, and who,at the authorization of the debtor, acts as an adjuster of the debtor's debtsin the disbursement of the proceeds of the loan, without compensation for theservices rendered in adjusting such debts.

(5)        An intermittent orcasual adjustment of a debtor's debts, for compensation, by an individual orperson who is not a debt adjuster or who is not engaged in the business orpractice of debt adjusting, and who does not hold himself out as beingregularly engaged in debt adjusting.

(6)        An attorney‑at‑lawlicensed to practice in this State who is not employed by a debt adjuster.

(7)        An organization thatprovides credit counseling, education, and debt management services to debtorsif the organization also does all of the following:

a.         Providesindividualized credit counseling and budgeting assistance to the debtor withoutcharge prior to the debtor's enrollment in a debt management plan provided bythe organization.

b.         Determines that thedebtor has the financial ability to make payments to complete the debtmanagement plan and that the plan is suitable for the debtor.

c.         Disburses thedebtor's funds to creditors pursuant to a debt management plan that the debtorhas paid for with no more than nominal consideration and has agreed to inwriting.

d.         Provides to thedebtor, periodically and on no less than a quarterly basis, an individualizedaccounting for the most recent period of all of the debtor's payments anddisbursements under the debt management plan and all charges paid by thedebtor.

e.         Does not directly orindirectly require the debtor to purchase other services or materials as acondition to participating in the debt management plan.

f.          Does not receive apayment, commission, or other benefit for referring the debtor to a provider ofservices.

g.         Is accredited by anaccrediting organization that the Commissioner of Banks approves as beingindependent and nationally recognized for providing accreditation toorganizations that provide credit counseling and debt management services. (1963, c. 394, s. 4; 2005‑408,s. 1; 2007‑79, s. 1.)