§ 14-423. Definitions.
Article 56.
Debt Adjusting.
§ 14‑423. Definitions.
As used in this Article, thefollowing definitions apply:
(1) "Debtadjuster" means a person who engages in, attempts to engage in, or offersto engage in the practice or business of debt adjusting.
(2) "Debtadjusting" means entering into or making a contract, express or implied,with a particular debtor whereby the debtor agrees to pay a certain amount ofmoney periodically to the person engaged in the debt adjusting business andthat person, for consideration, agrees to distribute, or distributes the sameamong certain specified creditors in accordance with a plan agreed upon. Debtadjusting includes the business or practice of any person who holds himself outas acting or offering or attempting to act for consideration as an intermediarybetween a debtor and his creditors for the purpose of settling, compounding, orin any way altering the terms of payment of any debt of a debtor, and to thatend receives money or other property from the debtor, or on behalf of thedebtor, for the payment to, or distribution among, the creditors of the debtor.Debt adjusting also includes the business or practice of debt settlement orforeclosure assistance whereby any person holds himself or herself out asacting for consideration as an intermediary between a debtor and the debtor'screditors for the purpose of reducing, settling, or altering the terms of thepayment of any debt of the debtor, whether or not the person distributes thedebtor's funds or property among the creditors, and receives a fee or otherconsideration for reducing, settling, or altering the terms of the payment ofthe debt in advance of the debt settlement having been completed or in advanceof all the services agreed to having been rendered in full.
(3) "Debtor"means an individual who resides in North Carolina, and includes two or moreindividuals who are jointly and severally, or jointly or severally, indebted toa creditor or creditors.
(3a) "Nominalconsideration" means a fee or a contribution to cover the cost ofadministering a debt management plan not to exceed forty dollars ($40.00) fororigination or setup of the debt management plan and ten percent (10%) of themonthly payment disbursed under the debt management plan, not to exceed fortydollars ($40.00) per month.
(4) "Person"means an individual, firm, partnership, limited partnership, corporation, orassociation. (1963,c. 394, s. 1; 2005‑408, s. 2; 2007‑79, s. 1.)