View Caren Enloe's profileAdditionally, in response to the number of questions posed with respect to the obligations of collection agencies and others licensed by the North Carolina Department of Insurance, the Department has now published a list of FAQs. Collection agencies should be mindful that the North Carolina Collection Agency Act encompasses to the collection of commercial, as well as consumer debts, and that this Order, by extension, applies similarly. The FAQs make clear:
- There is no affirmative duty on collection agencies to send a mass mailing to debtors offering deferrals. Instead, it is "up to the customer" to contact the collection agency to discuss options. If, however, a collection agency contacts a debtor to discuss repayment, the agency is affirmatively obligated to advise the customer of the option to defer payment for 30 days.
- A request for deferment acts as a cease and desist for the 30 day period. "Not just payments are deferred; ANY collection activity should cease for 30 days should the customer request a deferral."
- The Order and Extended Order apply to all payments, including those required by payment plans, ACHs and credit card repayment agreements. If the customer requests the deferments, the collection agency should cease all collection payment, including collection according to pre-arranged ACHs, credit card payments and other pre-arranged agreements for the 30 day period.
- While the Order and Extended Order do not generally apply to law firms and attorneys collecting debt, the Order and Extended Order do apply to law firms and attorneys to the extent they are seeking to collect payments under insurance contracts or policies. In those instances, the law firm or attorney "must delay collection activities on behalf of its clients during the deferral period.
Collection agencies and others impacted by the Order and Extended Order should continue to check periodically for further extensions of the Order.
