keepmine
09-27-2009, 08:51 AM
Governor Signs Bill to Protect Consumers from Home Foreclosures
September 9, 2009
Senate Bill 974 will save communities and protect against unfair debt collectors
RALEIGH – Gov. Bev Perdue today signed Senate Bill 974, The Consumer Economic Protection Act Of 2009 (CEPA),which will help homeowners facing foreclosure, preserve communities, and protect consumers from unfair debt collectors.
“When a home is foreclosed — it’s bad for our families, it’s bad for our communities, it’s bad for our businesses and it’s bad for North Carolina,” said Gov. Perdue. “This bill makes it easier for homeowners to work out a deal with their lenders and avoid foreclosure.”
Court records show that nearly 40,000 North Carolina homes have gone into foreclosure so far in 2009. According to the Center for Responsible Lending, more than 2.2 million North Carolina homeowners will see their property values decline over the next three years because of foreclosures in their neighborhood. Foreclosures hurt lenders as well, costing them an estimated 40 percent of the loan value.
“Everybody loses when a foreclosure happens,” Attorney General Roy Cooper said. “Giving homeowners and lenders more time to find solutions can save homes, neighborhoods and money.”
Not all foreclosures can be prevented, but some homeowners are able to work out repayment plans and loan modifications with their mortgage lender or servicer. The bill, sponsored by Senator Tony Rand and Representatives Deborah Ross, Larry Hall, Grier Martin and Dan Blue. will ensure that homeowners and their mortgage lenders have the chance to voluntarily resolve foreclosures.
SB 974 empowers the Clerk of Court presiding over a foreclosure hearing to ask what steps have been taken to prevent foreclosure and to continue the hearing for up to 60 days to allow homeowners and lenders more time to negotiate a solution.
To give homeowners a fair opportunity to appeal foreclosure orders, the bill also standardizes the amount of bond required at one percent of the balance due on the loan. Previously, some homeowners were asked to put up a bond worth the entire value of the loan balance in order to be able to appeal their foreclosure.
The bill also protects North Carolina consumers from unfair debt collection practices by debt buyers, a new breed of debt collectors that purchase old debts and aggressively file lawsuits to collect on them. In some cases, the debts have already been settled or paid. Debt buyers must now prove that they have the right to enforce the debt and be able to verify the amount owed. The new law also prohibits debt buyers from filing or threatening to file suit when barred by the statute of limitations.
Source:
North Carolina Department of Justice
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-Advisories/Press-Releases/Governor-Signs-Bill-to-Protect-Consumers-from-Home.aspx
______________
Here's a link to the actual bill. Some huge protections from debt collectors.
http://www.ncleg.net/Sessions/2009/Bills/Senate/HTML/S974v5.html
SECTION 5. G.S. 58‑70‑115 reads as rewritten:
"§ 58‑70‑115. Unconscionable means.Unfair practices.
No collection agency shall collect or attempt to collect any debt by use of any unconscionable means.unfair practices. Such means practices include, but are not limited to, the following:
(1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver;waiver.
(2) Collecting or attempting to collect from the consumer all or any part of the collection agency's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge;charge.
(3) Communicating with a consumer whenever the collection agency has been notified by the consumer's attorney that he represents said consumer.
(4) When the collection agency is a debt buyer or is acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor or otherwise attempting to collect on a debt when the collection agency knows, or reasonably should know, that such collection is barred by the applicable statute of limitations.
(5) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor, or otherwise attempting to collect on the debt without (i) valid documentation that the debt buyer is the owner of the specific debt instrument or account at issue and (ii) reasonable verification of the amount of the debt allegedly owed by the debtor. For purposes of this subdivision, reasonable verification shall include documentation of the name of the original creditor, the name and address of the debtor as appearing on the original creditor's records, the original consumer account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of the amount claimed to be owed, including all fees and charges.
(6) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor to collect on a debt without first giving the debtor written notice of the intent to file a legal action at least 30 days in advance of filing. The written notice shall include the name, address, and telephone number of the debt buyer, the name of the original creditor and the debtor's original account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of all amounts claimed to be owed.
September 9, 2009
Senate Bill 974 will save communities and protect against unfair debt collectors
RALEIGH – Gov. Bev Perdue today signed Senate Bill 974, The Consumer Economic Protection Act Of 2009 (CEPA),which will help homeowners facing foreclosure, preserve communities, and protect consumers from unfair debt collectors.
“When a home is foreclosed — it’s bad for our families, it’s bad for our communities, it’s bad for our businesses and it’s bad for North Carolina,” said Gov. Perdue. “This bill makes it easier for homeowners to work out a deal with their lenders and avoid foreclosure.”
Court records show that nearly 40,000 North Carolina homes have gone into foreclosure so far in 2009. According to the Center for Responsible Lending, more than 2.2 million North Carolina homeowners will see their property values decline over the next three years because of foreclosures in their neighborhood. Foreclosures hurt lenders as well, costing them an estimated 40 percent of the loan value.
“Everybody loses when a foreclosure happens,” Attorney General Roy Cooper said. “Giving homeowners and lenders more time to find solutions can save homes, neighborhoods and money.”
Not all foreclosures can be prevented, but some homeowners are able to work out repayment plans and loan modifications with their mortgage lender or servicer. The bill, sponsored by Senator Tony Rand and Representatives Deborah Ross, Larry Hall, Grier Martin and Dan Blue. will ensure that homeowners and their mortgage lenders have the chance to voluntarily resolve foreclosures.
SB 974 empowers the Clerk of Court presiding over a foreclosure hearing to ask what steps have been taken to prevent foreclosure and to continue the hearing for up to 60 days to allow homeowners and lenders more time to negotiate a solution.
To give homeowners a fair opportunity to appeal foreclosure orders, the bill also standardizes the amount of bond required at one percent of the balance due on the loan. Previously, some homeowners were asked to put up a bond worth the entire value of the loan balance in order to be able to appeal their foreclosure.
The bill also protects North Carolina consumers from unfair debt collection practices by debt buyers, a new breed of debt collectors that purchase old debts and aggressively file lawsuits to collect on them. In some cases, the debts have already been settled or paid. Debt buyers must now prove that they have the right to enforce the debt and be able to verify the amount owed. The new law also prohibits debt buyers from filing or threatening to file suit when barred by the statute of limitations.
Source:
North Carolina Department of Justice
http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-Advisories/Press-Releases/Governor-Signs-Bill-to-Protect-Consumers-from-Home.aspx
______________
Here's a link to the actual bill. Some huge protections from debt collectors.
http://www.ncleg.net/Sessions/2009/Bills/Senate/HTML/S974v5.html
SECTION 5. G.S. 58‑70‑115 reads as rewritten:
"§ 58‑70‑115. Unconscionable means.Unfair practices.
No collection agency shall collect or attempt to collect any debt by use of any unconscionable means.unfair practices. Such means practices include, but are not limited to, the following:
(1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver;waiver.
(2) Collecting or attempting to collect from the consumer all or any part of the collection agency's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge;charge.
(3) Communicating with a consumer whenever the collection agency has been notified by the consumer's attorney that he represents said consumer.
(4) When the collection agency is a debt buyer or is acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor or otherwise attempting to collect on a debt when the collection agency knows, or reasonably should know, that such collection is barred by the applicable statute of limitations.
(5) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor, or otherwise attempting to collect on the debt without (i) valid documentation that the debt buyer is the owner of the specific debt instrument or account at issue and (ii) reasonable verification of the amount of the debt allegedly owed by the debtor. For purposes of this subdivision, reasonable verification shall include documentation of the name of the original creditor, the name and address of the debtor as appearing on the original creditor's records, the original consumer account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of the amount claimed to be owed, including all fees and charges.
(6) When the collection agency is a debt buyer or acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor to collect on a debt without first giving the debtor written notice of the intent to file a legal action at least 30 days in advance of filing. The written notice shall include the name, address, and telephone number of the debt buyer, the name of the original creditor and the debtor's original account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of all amounts claimed to be owed.