The North Carolina Dept. of Insurance (N.C. Dept. of Insurance oversees collection agencies) settles with agency for charging transaction fees:

The North Carolina Dept. of Insurance (N.C. Dept. of Insurance oversees collection agencies) settles with agency for charging transaction fees:

In April 2014, the Commissioner of the North Carolina Department of Insurance (“NCDOI”) brought an action against a debt collector after receiving a complaint from a consumer about a $10.00 transaction fee.  NCDOI discovered that the company collected $20,912.50 in such fees from North Carolina consumers, between June 1, 2010 and June 5, 2013, where the individual fees ranged from $5.00 to $10.00.

Rather than face an administrative hearing to determine whether charging the fees was in violation of state law, the collector voluntarily agreed to stop collecting transaction fees from North Carolina consumers and agreed to pay a civil penalty of $21,412.50 for the fees collected.

The collector also agreed to fully reimburse any North Carolina consumer who paid the company a processing fee between June 1, 2010, and June 5, 2013 upon receipt of written request from the consumer within one year of the settlement.

The NCDOI’s position on the application of N.C. Gen. Stat. Section 58-70-115(2) should cause collection agencies doing business in North Carolina to carefully analyze the assessment of any “collection fee” including fees assessed for processing certain types of payments.

If you would like more information on this settlement or its impact on your business, please contact the firm.

Contact Us

We aggressively and competently represent our clients and assist our community as a good corporate citizen of Rock Hill, South Carolina. Send us a message using the form below or contact us directly at 803.329.8970.

Office Address:

224 Oakland Avenue
Rock Hill, SC 29730

Mailing Address:

PO Box 12645
Rock Hill, SC 29731

©2019 The Echols Firm, LLC. All rights reserved.

Attorneys licensed to practice in North Carolina and South Carolina. We may associate counsel in other states depending on the nature of your case. This World Wide Website has been developed by to provide general information about our practice. Persons viewing or using our site should note the following: No Attorney-Client Relationship Created by Use of this Website: Neither your use of this website, any information contained herein or any attempts to contact The Echols Firm, LLC or any attorney employed by us, creates an attorney-client relationship between you and any firm attorney. Attorney-client relationships with our firm and its lawyers can only be established through direct person-to-person contact and only after a specific letter of engagement has been expressly agreed to between our firm and a client. If other counsel is associated, we will fully disclose to you in writing the terms of that association, including the manner in which any fees are billed and/or divided. You should not provide any confidential information to our firm through e-mail or otherwise.