Includes legislative findings and establishes State policy relating to the provision of remedies for economic abuse against domestic violence survivors.

Establishes new GS Chapter 1H, North Carolina Economic Abuse Prevention Act. Includes 11 defined terms. Defines coerced debt to mean a particular debt, or a portion thereof, for personal, family, or household use in the name of the debtor who is a victim of domestic violence or domestic abuse, or a current or former child in foster case, incurred as a result of duress, intimidation, threat of force, force, or undue influence.

Limits the scope of the Chapter to exclude secured debts; it does not authorize a court to order a claimant to refund any moneys already paid on a coerced debt; it does not diminish the rights of a claimant to recover payment from a coerced debt from the person(s) who coerced the debtor; and it does not affect other rights or defenses available to the debtor or claimant.

Makes a person who causes another person to incur coerced debt civilly liable to the claimant for the amount of the debt, or a portion as determined by a court, and the claimant's attorneys' fees and costs.

Requires a claimant, defined to include debt collectors and debt buyers, to cease collection activities when a debtor provides for the claimant's review adequate documentation and the debtor's sworn written certification that a particular debt, or a portion thereof, being collected is coerced debt. Defines adequate documentation to include any of the following that identifies a particular debt, or portion thereof, as coerced debt, and describes the circumstances under which coerced debt was incurred: a police report; a Federal Trade Commission identity theft report; a GS Chapter 50, 50B, 7B, or GS 108A-106 court order relating to domestic violence, juvenile abuse, neglect or dependency, or disabled adults; or sworn written certification from a qualified third-party professional, as described and defined. Details required content of a sworn written certification based on relevancy to the debtor's allegation, including a copy of the debtor's drivers license or ID card; an express statement that the debtor did not willingly authorize the use of the debtor's name or personal information for incurring the coerced debt, supports facts and identifying portions coerced; and the identity of the person(s) who coerced the debtor, with exceptions for when disclosure would likely result in abuse to the debtor or an immediate family member. Provides that the collector must notify the consumer credit reporting agency that the account is disputed within 10 days of receiving the documentation from the debtor if the claimant had furnished adverse information on the debtor. Requires claimants to notify debtors of the documentary requirements for review if a debtor orally notifies the claimant that a particular debt is coerced debt or omits any of the required information. Requires the claimant to review the information received and other information available in its file for the debtor and give the debtor written notice of the claimant's determination and good-faith basis for that determination within 30 days of completing its review. Prohibits recommending collection activities until the debtor has received written notice of the determination. Bars any inference or presumption regarding the debt or debtor liability if the claimant decides to cease or recommence collection activities after the required review. Deems the exercise or non-exercise of rights under the statute to not waive any other right or defense of the debtor or claimant. 

Requires a debtor to give 30 days' written notice of their intent to file an action against the claimant and review documents. Details notice requirements. Bars filing an action where the claimant has ceased efforts to collect on the particular debt, or a portion thereof, identified in the notice and the debtor receives written notice of cessation before the 30-day period expires. Requires that the debtor have received written notice from the claimant of its determination that the information debtor submitted for review does not establish that the particular debt is coerced debt before the debtor can commence an action against a claimant in connection with an allegedly coerced debt. Establishes requirements for a claimant that ceases collection activities and does not recommence those activities, including notifying consumer credit reporting agencies and creditors as necessary.

Allows a debtor to bring an action or file a cross-claim against a claimant to establish that a particular debt, or portion thereof, is coerced debt. Specifies that the 30-day notice requirement is not required for cross-complaints. Details pleading requirements; establishes preponderance of the evidence as the standard of proof; and the relief granted to a debtor who establishes that the particular debt is coerced debt, including declaratory judgment, injunctive relief, and an order dismissing enforcement actions brought by the claimant relating to the coerced debt. Upon a debtor establishing that the particular debt is coerced debt, directs the court to issue a judgment in favor of the claimant against the person(s) who coerced the debtor in the amount of the coerced debt, subject to jurisdiction requirements and sufficiency of the evidence. Charges the court with taking steps to prevent abuse of the debtor or their immediate family as described. Establishes liability for a debtor who files knowingly false motions, pleading, or papers or engages in frivolous or delaying tactics. Allows the claimant to move the court to make written findings regarding evidence related to the person who caused the coerced debt.

Grants the claimant standing to use all rights and remedies available to collect the claim from the person(s) determined to have coerced the debt or used or possessed money, goods, services, or property obtained through coerced debt. Sets the statute of limitations for the claimant to bring an action to collect coerced debt at five years from the date of the court's determination that the person caused the coercion. Includes a severability clause. Limits the Chapter to debts incurred on or after July 1, 2025, except for cross-complaints filed by a claimant to collect debt incurred prior to July 1, 2025, unless a final judgment has been entered in that action.

Effective July 1, 2025.