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Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2025-05-07

Vote Breakdown

Plain Language Summary

This bill creates the North Carolina Economic Abuse Prevention Act, which provides domestic violence survivors and certain other abuse victims legal remedies to challenge debts incurred under duress, coercion, or fraud by abusers. Survivors can provide documentation to creditors and collection agencies to stop collection activities and potentially eliminate their liability for coerced debts, while creditors may pursue claims against the person who coerced the debt.

Arguments in Favor

• •Supporters argue this bill addresses a serious harm that domestic violence survivors face: abusers using their names to incur debt, damaging credit and financial stability long after the relationship ends.
• •The law provides survivors multiple pathways to challenge these debts through police reports, court orders, or professional certifications, protects them from collection harassment during review periods, and allows them to repair their credit by removing disputed accounts.
• •The bill also enables creditors to recover losses from the actual abuser rather than the victim.

Arguments Against

• •Opponents may express concerns that the bill could be misused by debtors claiming coerced debt fraudulently, potentially harming legitimate creditors.
• •The documentation requirements for "qualified third-party professionals" might be difficult for some survivors to obtain, especially if they lack access to domestic violence services.
• •Additionally, creditors may be concerned about the 30-day review periods and requirements to notify credit agencies, which could affect their collection operations, and some may argue the bill creates new compliance burdens without adequate resources.