North Carolina Law Provides Additional Protection to Consumers

Raleigh, NC – January 3, 2011 — With the rising default rate on consumer debt and current unemployment figures, North Carolina has seen an increase in illegal debt collection activity. North Carolina law requires that all collection agencies doing business in the state have a license issued by the Department of Insurance. In a rush to take advantage of the depressed economy, many collection agencies have illegally started doing business in North Carolina without being properly licensed.

North Carolina law provides greater protection to consumers than the Federal Fair Debt Collection Practices Act. North Carolina law provides that it is a felony to operate an unlicensed collection agency. Additionally, an unlicensed collection agency and its owners, are subject to civil liability under the North Carolina Unfair and Deceptive Trade Practices Act.

Michael A. Dye, a consumer protection attorney in Wake County and partner at The Law Offices of Dye & Weatherly, PLLC, stated “We have seen a substantial increase in the amount of unlicensed collection agencies in the past year and a half. Many of these collection agencies are brand new, but some have been getting away with it for years. The easiest way to tell if the company is licensed is to check their letter. Collection agencies are required to put their license number on all correspondence. Exceptions to the licensing requirement are extremely limited. North Carolina law provides far more protection to its citizens than the Fair Debt Collection Practices Act. Anyone who receives a collections letter should contact an attorney immediately.”


Michael Dye and Jane Weatherly are consumer rights attorneys licensed in the State of North Carolina, Eastern District of North Carolina & Middle District of North Carolina. The firm is a debt relief agency. In addition to consumers rights claims, their attorneys help individuals file for relief under the United States Bankruptcy Code. More information on the firm and attorneys is available at

Contact Name: Michael A. Dye, Esq.
Phone: (919)828-7977
Fax: (919)238-7281
Address: 19 W. Hargett St., Suite 214
Raleigh, NC 27601
Email: [email protected]
[email protected]