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HB 515NORTH CAROLINASession 2025State Billpassed chamber

Passed

North Carolina creates legal remedies for victims of domestic violence to dispute coerced debt

Original title: North Carolina Economic Abuse Prevention Act.

Last action · May 7, 2025: Ref To Com On Rules and Operations of the Senate (Senate action)Sponsors: Terry Brown and 32 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

North Carolina enacts the Economic Abuse Prevention Act, allowing victims of domestic violence, abuse, or certain foster care backgrounds to dispute s, halt collection activities, and seek court orders relieving them of liability starting July 1, 2025.

Why it matters

Domestic violence survivors and certain former foster youth gain legal mechanisms to challenge debts forced upon them by abusers, shift financial liability to the responsible party, and require creditors to correct or remove adverse credit reporting.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

victims of domestic violence

Victims gain legal standing and procedures to dispute coerced debts, halt collection activities, and obtain declaratory relief from liability.

Directly affected

debt collectors and claimants

Claimants must pause collection upon receiving adequate documentation, conduct a formal review, notify credit reporting agencies, and face restrictions on collecting from victims while gaining standing to pursue the coercing individual.

Key Facts

The act applies to unsecured debts incurred on or after July 1, 2025, though debtors may file cross-complaints for debts incurred prior to that date if no final judgment has been entered.
A claimant must cease collection activities upon receiving adequate documentation and a debtor's sworn written certification of coerced debt.
Claimants who furnished adverse information to consumer credit reporting agencies must notify them to flag the account as disputed within 10 business days of receiving complete documentation.
Claimants must complete a review within 30 days of receiving complete information and notify the debtor in writing of their good-faith determination.

Show all 10 facts

Debtors must provide written notice of intent to file an action to a claimant at least 30 days before initiating a lawsuit regarding allegedly coerced debt.
If a debtor establishes by a preponderance of the evidence that a debt is coerced, they are entitled to a declaratory judgment, an injunction against personal liability, and dismissal of collection actions.
Courts must issue a judgment in favor of the claimant against the person who coerced the debt, provided that individual is brought within the court's jurisdiction.
A person who causes another person to incur a coerced debt is civilly liable to the claimant for the amount of the debt plus attorneys' fees and costs.
Debtors who file knowingly false motions or engage in frivolous tactics are liable for the claimant's attorneys' fees and costs.
The statute of limitations for a claimant to collect coerced debt from the person who caused it is five years from the date of the court's determination.

Frequently Asked Questions

What documentation is required to notify a creditor that a debt was coerced?

A debtor must provide —such as a police report, FTC identity theft report, relevant court order, or a sworn written certification from a qualified third-party professional—along with the debtor's sworn written certification.

What must a debt collector do after receiving notice and adequate documentation of coerced debt?

The must cease collection activities, notify any consumer credit reporting agencies that the account is disputed, and conduct a good-faith review within 30 days.

Does this act apply to secured debts like mortgages or car loans?

No, Chapter 1H explicitly states that it does not apply to secured debts.

Can a debtor file a lawsuit immediately upon notifying a creditor?

No, a debtor must submit written notice of their intent to file an action and compliant documentation by certified mail or overnight delivery at least 30 days before filing an action.

What else do you want to know?

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Where This Stands

Currently passed chamber. The next step in the legislative lifecycle is Law.

Procedural history

18 actions

May 7, 2025Senate
Ref To Com On Rules and Operations of the Senate
May 7, 2025Senate
Passed 1st Reading
May 7, 2025Senate
Special Message Received From House
May 7, 2025House
Special Message Sent To Senate
May 7, 2025House
Passed 3rd Reading
May 7, 2025House
Passed 2nd Reading

Show 12 earlier actions

May 5, 2025House
Placed On Cal For 05/07/2025
May 1, 2025House
Cal Pursuant Rule 36(b)
May 1, 2025House
Reptd Fav
Apr 30, 2025House
Re-ref Com On Rules, Calendar, and Operations of the House
Apr 30, 2025House
Withdrawn From Com
Apr 29, 2025House
Re-ref Com On Finance
Apr 29, 2025House
Reptd Fav Com Substitute
Apr 17, 2025House
Re-ref to the Com on Judiciary 3, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
Apr 17, 2025House
Withdrawn From Com
Mar 26, 2025House
Ref to the Com on Judiciary 2, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
Mar 26, 2025House
Passed 1st Reading
Mar 25, 2025HouseIntroduced
Filed

Version history

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