North Carolina Legislature

North Carolina is joining other state legislatures around the country and attempting to drop the legal and statutory hammer on the accounts receivable management industry.

The state Senate this week approved a bill that would include debt buyers in the definition of “collection agencies,” requiring them to be governed under the same rules. The bill also doubles the maximum fine for violations of state collection law (“Bills Targeting ARM Industry Advance in North Carolina Senate,” May 13). A Senate committee also advanced another bill aimed at debt buyers that has the backing of the state attorney general.

Interestingly, the attention that debt buying has been drawing has served to differentiate many of roles of companies in the ARM industry. It’s a subtle difference to those on the outside, but a fundamentally disparate business for those inside. It remains to be seen whether the new-found nuance legislators – and even the media – have been using on the ARM industry is a good thing.