Prohibitions

• In North Carolina,it is illegal for anyone to enter into an agreement with you to adjust the amount you owe creditors. In many cases, the practice requires you to make payments to the adjuster who negotiates with creditors to lower the balance due. The debt adjuster then makes payments to the creditor on your behalf.
  
  

Penalties

• Local district attorneys or the state attorney general may prosecute anyone engaged in debt adjusting. If convicted, a person engaged in this activity is guilty of a Class 2 misdemeanor. The courts can require that all money or property paid to the debt adjuster be returned to the debtor.
  
  

Considerations

• Attorneys licensed to practice in the state may assist you with debt reduction if they are not employed by a debt adjuster. Credit counseling and debt management organizations can assist you provided they do not charge for offering educational advice. These organizations may only charge a fee if you choose to enroll in their debt reduction program after receiving free counseling.