SB 491

Enacts the NC Debt Settlement Services Act (Act) in Article 26 of GS Chapter 53, as follows. Defines fourteen terms including debt settlement services (i.e., any action or negotiation initiated or taken on behalf of a debtor with any creditor of the debtor for the purpose of obtaining debt forgiveness of all or a portion of the credit extended by the creditor to the debtor or a reduction of payments, charges, or fees payable by the debtor. Clarifies that the enrollment in a student loan forgiveness or student loan payment reduction programs established under federal or State law does not constitute an action or negotiation under the definition). Authorizes the Commissioner of Banks (Commissioner) to make rules to implement the Act in GS 53-443. Prevents any person from engaging in the business of providing or offering to provide debt settlement services to any debtor whether or not the person has an office, facility, agent, or other physical presence in the State unless they are licensed pursuant to the Act. Exempts any bank, savings institution, credit union, refund anticipation loan act licensee, trust company doing business under GS Chapter 53C, savings and loan association doing business under GS Chapters 54 or 54B, savings bank doing business under GS Chapter 54C, consumer finance licensee, or any person licensed to practice law in this State from the Act. Specifies that neither (1) a debt management organization offering to provide or provides debt settlement services solely in connection with offering to provide or providing debt management plans nor (2) a nonprofit organization providing credit counseling services that satisfies the requirements of 26 U.S.C. § 501(q) is required to be licensed under the Act. Instructs the Commissioner to construe the Act to promote sound personal financial advice and management.