North Carolina 2025 Session Status: In Committee Bipartisan · 3 R · 1 D cosponsors

SB 491 — NC Debt Settlement Services Act.

Last action — Passed 1st Reading

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Advancing 38% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 4 sponsors

    2 primary, 2 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (3 R · 1 D) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

38 added · 39 removed

Plain-language change summary

In the updated version of Senate Bill 491, some language has been clarified and streamlined. For example, the bill now specifies that a clear explanation of costs to the debtor must be highlighted in bold, making it easier for individuals to understand their financial obligations. This change is important because it enhances transparency and ensures that debtors are fully informed before entering into agreements, helping them make better financial decisions.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Mar 25, 2025 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 491 Short Title:
491 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS15196-MUf-27 Short Title:
A BILL TO BE ENTITLED AN ACT TO LICENSE, EXAMINE, AND REGULATE DEBT SETTLEMENT SERVICES IN THE STATE OF NORTH CAROLINA.
Rules and Operations of the Senate March 26, 2025 A BILL TO BE ENTITLED AN ACT TO LICENSE, EXAMINE, AND REGULATE DEBT SETTLEMENT SERVICES IN THE STATE OF NORTH CAROLINA.
Chapter 53 of the General Statutes is amended by adding a new Article to read:
Chapter 53 of the General Statutes is amended byadding a new Article to read:
*DRS15196-MUf-27* General Assembly Of North Carolina Session 2025 c.
*S491-v-1* General Assembly Of North Carolina Session 2025 c.
– Any action or negotiation initiated or taken on behalf of a debtor with any creditor of the debtor for the purpose of obtaining debt forgiveness of all or a portion of the credit extended by the creditor to the debtororareductionofpayments,charges,orfees payablebythedebtor.With respect to student loan forgiveness or student loan payment reduction programs established under federal or State law and widely available to similarly situated debtors at no cost, the facilitation of enrollment in or qualification for these programs does not constitute an action or negotiation.
– Any action or negotiation initiated or taken on behalf of a debtor with any creditor of the debtor for the purpose of obtaining debt forgiveness of all or a portion of the credit extended by the creditor to the debtororareductionofpayments,charges,orfees payablebythe debtor.With respect to student loan forgiveness or student loan payment reduction programs established under federal or State law and widely available to similarly situated debtors at no cost, the facilitation of enrollment in or qualification for these programs does not constitute an action or negotiation.
– A person that, directly or indirectly, owns or controls ten percent (10%)ormoreof theoutstandingstockof a corporation ora tenpercent (10%) or greater interest in a person.
– A person that, directly or indirectly, owns or controls ten percent (10%)ormoreof theoutstandingstock of a corporation ora tenpercent (10%) or greater interest in a person.
This Article does not apply to any bank, savings institution, credit union, refund anticipation loan act licensee under Article 20 of this Chapter, trust company doing business under Chapter 53C of the General Statutes, savings and loan association doing business under Chapter 54 or 54B of the General Statutes, savings bank doing business under Chapter 54C Page 2 DRS15196-MUf-27 General Assembly Of North Carolina Session 2025 oftheGeneral Statutes, consumerfinancelicensee underArticle15 ofthis Chapter, or anyperson licensed to practice law in this State.
This Article does not apply to anybank, savings institution, credit union, refund anticipation loan act licensee under Article 20 of this Chapter, trust company doing business under Chapter 53C of the General Statutes, savings and loan association doing business under Chapter 54 or 54B of the General Statutes, savings bank doing business under Chapter 54C Page 2 Senate Bill 491-First Edition General Assembly Of North Carolina Session 2025 oftheGeneral Statutes, consumerfinancelicensee underArticle15 ofthis Chapter, or anyperson licensed to practice law in this State.
Ifthe applicant is a business trust, the name and address of eachtrustee and beneficiary.
If the applicant is a business trust, the name and address of eachtrustee and beneficiary.
In the case of an applicant that is a person other than a natural person, each individual who has control of the applicant or who is the qualifying individual or a branch manager shall consent to a federal and State criminal history record check and submit a set of that individual's fingerprints.
In the case of an applicant that is a person other than a natural person, each individual who has control of the applicant or who is the qualifying individual or a branch manager shall consent to a federal and State criminal historyrecord check and submit a set of that individual's fingerprints.
(8) Any other information required by the Commissioner concerning the financial responsibility, background, experience, and activities of the applicant and the persons described in this section.
(8) Anyother information required bythe Commissioner concerningthe financial responsibility, background, experience, and activities of the applicant and the persons described in this section.
DRS15196-MUf-27 Page 3 General Assembly Of North Carolina Session 2025 (d) The surety bond shall remain in effect until cancellation, which may occur only after 90 days' written notice to the Commissioner.
Senate Bill 491-First Edition Page 3 General Assembly Of North Carolina Session 2025 (d) The surety bond shall remain in effect until cancellation, which may occur only after 90 days' written notice to the Commissioner.
Page 4 DRS15196-MUf-27 General Assembly Of North Carolina Session 2025 (c) A licensee shall notify the Commissioner in a record of the closing of any business location within 20 days of the closing.
Page 4 Senate Bill 491-First Edition General Assembly Of North Carolina Session 2025 (c) A licensee shall notify the Commissioner in a record of the closing of any business location within 20 days of the closing.
(b) If the Commissioner requests a response in a record from the licensee, or any books, accounts, records, or other documents from a licensee, the licensee shall submit a response in a record, along with the requested documents, within the time period specified by the DRS15196-MUf-27 Page 5 General Assembly Of North Carolina Session 2025 Commissioner.
(b) If the Commissioner requests a response in a record from the licensee, or any books, accounts, records, or other documents from a licensee, the licensee shall submit a response in a record, along with the requested documents, within the time period specified by the Senate Bill 491-First Edition Page 5 General Assembly Of North Carolina Session 2025 Commissioner.
(d) The Commissioner may, by rule, impose terms and conditions under which the records and files of a licensee may be maintained outside this State.
(d) The Commissioner may, by rule, impose terms and conditions under which the records and files of a licensee maybe maintained outside this State.
Page 6 DRS15196-MUf-27 General Assembly Of North Carolina Session 2025 (4) Any felony indictment of the licensee or any of its members, partners, directors, officers, trustees, beneficiaries, or principals, if known.
Page 6 Senate Bill 491-First Edition General Assembly Of North Carolina Session 2025 (4) Any felony indictment of the licensee or any of its members, partners, directors, officers, trustees, beneficiaries, or principals, if known.
"§ 53-454.
"§53-454.
(e) The confidentiality provisions contained in subsection (c) of this section do not apply to information or material relating to the employment history of and publicly adjudicated disciplinary and enforcement actions for debt settlement service providers.
(e) The confidentialityprovisions contained in subsection (c) of this section do not apply to information or material relating to the employment history of and publicly adjudicated disciplinary and enforcement actions for debt settlement service providers.
DRS15196-MUf-27 Page 7 General Assembly Of North Carolina Session 2025 (a) To defray the costs of the regulation of licensees, a licensee shall pay an annual fee of one thousand dollars ($1,000).
Senate Bill 491-First Edition Page 7 General Assembly Of North Carolina Session 2025 (a) To defray the costs of the regulation of licensees, a licensee shall pay an annual fee of one thousand dollars ($1,000).
The agreement may be signed by the parties either in writing or electronically.
The agreement maybe signed bythe parties either in writing or electronically.
Aclear explanation,highlightedin bold type,ofthecosts to the debtor.
Aclear explanation,highlightedin bold type,ofthe costs to the debtor.
The amount of time necessary to achieve the represented results and, to the extent that the services may include a settlement offer to any of Page 8 DRS15196-MUf-27 General Assembly Of North Carolina Session 2025 the debtor's creditors or debt collectors, the time by which the licensee will make a bona fide settlement offer to each of them.
The amount of time necessary to achieve the represented results and, to the extent that the services may include a settlement offer to any of Page 8 Senate Bill 491-First Edition General Assembly Of North Carolina Session 2025 the debtor's creditors or debt collectors, the time by which the licensee will make a bona fide settlement offer to each of them.
Totheextentthatany aspect ofthedebt settlement services relies upon or results in the debtor's failure to make timely payments to creditors or debt collectors, that the use of the debt settlement services will likely adversely affect the debtor's creditworthiness, may result in the debtor being subject to collections or sued by creditors or debt collectors, and may increase the amount of money the debtor owes due to the accrual of fees and interest.
Totheextentthatanyaspect ofthedebt settlement services relies upon or results in the debtor's failure to make timely payments to creditors or debt collectors, that the use of the debt settlement services will likely adversely affect the debtor's creditworthiness, may result in the debtor being subject to collections or sued by creditors or debt collectors, and mayincrease the amount of moneythe debtor owes due to the accrual of fees and interest.
(6) A licensee shall not require a debtor to open an account with a depository institution as a condition of receiving debt settlement services.
(6) A licensee shall not require a debtor to open an account with a depository institution as a condition of receivingdebt settlement services.
DRS15196-MUf-27 Page 9 General Assembly Of North Carolina Session 2025 (13) A licensee shall not receive money from a debtor for transmission to a debtor's creditors or engage in the business of providing or offering to provide debt management plans to debtors unless the licensee is also licensed under Article 16B of this Chapter.
Senate Bill 491-First Edition Page 9 General Assembly Of North Carolina Session 2025 (13) A licensee shall not receive moneyfrom a debtor for transmission to a debtor's creditors or engage in the business of providing or offering to provide debt management plans to debtors unless the licensee is also licensed under Article 16B of this Chapter.
(4) Conviction of a felony or misdemeanor involving fraud, misrepresentation, or deceit.
(4) Conviction of a felonyor misdemeanor involving fraud, misrepresentation, or deceit.
After notice of opportunity for a hearing, the Commissioner may impose a civil penalty upon a person that has violated any of the provisions of this Article or rules adopted under it.
After notice of opportunity for a hearing, the Commissioner mayimpose a civil penalty upon a person that has violated any of the provisions of this Article or rules adopted under it.
The Commissioner may also Page 10 DRS15196-MUf-27 General Assembly Of North Carolina Session 2025 seek, and a court may award, an injunction against the person.
The Commissioner may also Page 10 Senate Bill 491-First Edition General Assembly Of North Carolina Session 2025 seek, and a court may award, an injunction against the person.
(c) In an action brought by the Attorney General under this section, the Attorney General is entitled to reasonable attorneys' fees and costs.
(c) In an action brought bythe AttorneyGeneral under this section, the Attorney General is entitled to reasonable attorneys' fees and costs.
The officer presiding at the hearing may be the Commissioner, a deputy commissioner, or another suitable person designated by the Commissioner.
The officer presiding at the hearingmaybe the Commissioner, a deputycommissioner, or another suitable person designated by the Commissioner.
(d) A party may petition the Superior Court of Wake County for judicial review of a final order of the Commission within 30 days after the order.
(d) A partymay petition the Superior Court of Wake Countyfor judicial review of a final order of the Commission within 30 days after the order.
DRS15196-MUf-27 Page 11
Senate Bill 491-First Edition Page 11
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Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules and Operations of the Senate

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 2 co-sponsors · 175 not signed on

Sponsors (2)

Co-sponsors (2)

Not signed on (175)

175 members have not signed on to this bill.

Show all 175 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 491?
SB 491 is sponsored by Paul A. Lowe, Jr. (Democratic), Brad Overcash (Republican), Todd Johnson (Republican), and Brent Jackson (Republican).
What is the current status of SB 491?
This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.
Where can I track SB 491?
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