By Brianna Kraemer for The Carolina Journal
The North Carolina House passed a bill on predatory debt unanimously last week that leaders hope the Senate will take up this session. One member joked that, after passing it in past sessions, it may have a better chance now that a key lobbyist who opposed the bill has left Raleigh for Washington.
House Bill 734 is the latest attempt to close loopholes that allow predatory-debt settlement companies to exploit vulnerable credit-card customers. The bill comes as some have fallen victim to bad actors in the industry. It would make it an unfair trade practice to charge upfront fees for debt-settlement services before any results are delivered.
When explaining the legislation, titled “Modernize Debt Settlement Prohibition,” state Rep. Julia Howard, R-Davie, joked about the lobbyist who had prevented progress on the bill for years. She said the lobbyist, who she later identified to CJ as Ches McDowell, was known for duck hunting with North Carolina senators. But with McDowell leaving the General Assembly behind for DC, House lawmakers are hoping their long-stalled bill might finally take hold in the Senate.
Despite unanimous support in both 2021 and 2023 in the House, the bill has repeatedly stalled in the Senate.
“I’m going to ask you to support this one more time. Third time is a charm, maybe,” Howard said. “And maybe that lobbyist that had so much influence over on the other side — my understanding is that he has moved now to Washington, DC, to lobby. So he’s not going to be a pain in our side.”
“If I didn’t feel that this was a very, very important issue, I would not have tried it again,” Howard added.
State Rep. Ya Liu, D-Wake, another primary sponsor, explained it as a consumer protection bill that’s focused on stopping bad actors from preying on those unable to fight back. Victims are often encouraged to stop making credit card payments with the promise of reduced debt, only to face foreclosure or financial ruin when no relief materializes.
Groups like AARP and the US Marine Corps have backed the bill, warning lawmakers that debt-settlement firms’ deceptive practices are causing real harm. The bill strengthens civil penalties and allows courts to appoint receivers to recover funds.
The preceding article originally appeared on April 22, 2025 at The Carolina Journal’s website and is made available here for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 106A-117 of the U.S. Copyright Law. Any views or opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of the Carolina Leadership Coalition.
