Enacts the NC Debt Settlement Services Act (Act) in Article 26 of GS Chapter 53, as follows. Defines fourteen terms including debt settlement services (i.e., 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 debtor or a reduction of payments, charges, or fees payable by the debtor. Clarifies that the enrollment in a student loan forgiveness or student loan payment reduction programs established under federal or State law does not constitute an action or negotiation under the definition). Authorizes the Commissioner of Banks (Commissioner) to make rules to implement the Act in GS 53-443. Prevents any person from engaging in the business of providing or offering to provide debt settlement services to any debtor whether or not the person has an office, facility, agent, or other physical presence in the State unless they are licensed pursuant to the Act. Exempts any bank, savings institution, credit union, refund anticipation loan act licensee, trust company doing business under GS Chapter 53C, savings and loan association doing business under GS Chapters 54 or 54B, savings bank doing business under GS Chapter 54C, consumer finance licensee, or any person licensed to practice law in this State from the Act. Specifies that neither (1) a debt management organization offering to provide or provides debt settlement services solely in connection with offering to provide or providing debt management plans nor (2) a nonprofit organization providing credit counseling services that satisfies the requirements of 26 U.S.C. § 501(q) is required to be licensed under the Act. Instructs the Commissioner to construe the Act to promote sound personal financial advice and management.

Provides for a license application process, including a form and a $2,000 application fee in GS 53-445. Requires applicants for licensure to post a surety bond in a form satisfactory to the Commissioner with the Commissioner at the time of application and to maintain a $1 million surety bond as a licensee in GS 43-446. Directs the bond to run to the State for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to debt settlement engagements. Grants Commissioner discretion to require additional insurance coverage to address cybersecurity risks as described. Limits the aggregate liability of the surety to the principal sum of the bond. Provides for suit against the bond by claimants against the licensee and the Commissioner on their behalf. Provides for cancellation of the bond and lifespan of the bond. Deems the surety bond proceeds to be held in trust for the benefit of the debtors in a debt settlement engagement in the event of the bankruptcy of the licensee.

Requires the Commissioner to issue a license at the locations specified in the license only if they find the applicant meets all five of the listed qualifications, including that the applicant meets financial responsibility, character, and general fitness sufficient to warrant belief that the business will be operated efficiently and fairly, in the public interest and in accordance with law. Bars licenses from being issued to a creditor or debt collector.

Specifies contents of licenses in GS 53-448. Requires prior approval by the Commissioner to open an additional office or relocate their place of business through an application form and $500 nonrefundable fee. Requires the application to be approved unless the Commissioner finds that that the applicant has not conducted business under the Act efficiently, fairly, in the public interest, and in accordance with law. Deems such applications approved if no notice to the contrary has been mailed by the Commissioner to the applicant within 30 days of the date the Commissioner receives the application, which can be extended by the Commissioner for good cause. Provides for notice of commencement of business and the closing of business by the applicant, as described.

Prevents, in GS 53-449, a person from acquiring, directly or indirectly, 25% or more of a licensee’s ownership, or 25% or more of its voting share if the licensee is a corporation, unless the person first follows the three required steps including submitting any information required by the Commissioner concerning the financial responsibility, background, experience, and activities of the person or the listed key corporate managers and personnel. Allows for the Commission to investigate the applicant. Requires the Commission to permit the applicant to acquire the interest in the licensee if it finds that the applicant and its listed key corporate mangers and personnel have the financial responsibility, character, reputation, experience, and general fitness to warrant belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with law. Provides timeline for Commission to decide on the application and notice of its decision, including reasons for a denial, if applicable. Exempts the following from GS 53-449: (1) the acquisition of an interest in a licensee, directly or indirectly, including an acquisition by merger or consolidation, by or with another licensee; (2) the acquisition of an interest in a licensee, directly or indirectly, including an acquisition by merger or consolidation, by or with a person affiliated through common ownership with the licensee; (3) the acquisition of an interest in a licensee by a person by devise, descent, survivorship, or operation of law. Requires those persons exempt from GS 53-449 to send written notice to the Commissioner of the acquisition within 30 days of its closing.

Requires licensees to maintain in its offices any books, accounts, and records required by the Commissioner to determine whether the licensee is complying with the Act and rules adopted under it. Provides for retention times. Bars submission of inaccurate or incomplete information to the Commission as described. Prevents a principal place of business from being located in an individual’s home or residence. Provides for reporting of a licensee’s principal place of business and any change of address to the Commission. Allows the Commission to impose terms and conditions under which a licensee’s records and files may be maintained outside the State. Requires in GS 53-451 for each licensee to submit an annual report under oath to the Commission by no later than 90 days after the end of each calendar year, to include the described data. Enacts GS 53-452, requiring a licensee to submit a report, as described, on (1) the six described events to the Commission within 15 days of the event; (2) the impact of the judgment on the licensee’s business within 30 days after the judgment is entered against the licensee in a civil action relating to its debt settlement services; or (3) notice of a qualified audit and the steps the licensee is taking to address concerns raised in the audit within 10 days after its receipt of such notice. Authorizes the Commission to undertake investigations of licensees as described, and gives the Commission subpoena power to compel documents and testimony under oath in GS 53-453.

Enacts GS 53-454, allowing the Commission to enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies and may share otherwise confidential information pursuant to these written agreements. Requires the Commission to report enforcement actions under the Act and allows reporting of other relevant information. Specifies that State privacy protections continue apply to the reports and information disclosed as part of intergovernmental agreements/sharing arrangements and can be shared, as described, without disturbing those confidentiality protections. Exempts information or material relating to the employment history of and publicly adjudicated disciplinary and enforcement actions for debt settlement service providers from the confidentiality provisions.

Imposes an annual fee of $1,000 on licensees as well as an assessment not to exceed $18 per $100,000 of debt enrolled in debt settlement services due according to the described timelines in GS 53-455. Requires a licensee to pay travel expenses, as described, if it becomes necessary to examine the books, accounts, and records of a licensee at a location outside this State.

Enacts GS 53-456 requiring a licensee to comply with fourteen business practices as a condition of licensure including having each debt settlement services agreement be in a record and signed by the debtor and an individual representing the licensee in writing with a duplicate provided to the debtor; providing required disclosures to the debtor; and not enrolling a covered military member. Authorizes the following fees under GS 53-457 if a licensee successfully reaches a settlement for a debtor’s debt: 15% or less of the principal amount of the debt or 20% or less of the difference between the amount of the debt at the time the licensee settles the debt and the amount to be paid by the debtor pursuant to the settlement. Bars a licensee from charging a debtor any other fee for providing debt settlement services. Prevents in GS 53-458, a licensee from using or causing to be published any advertisement that contains any false, misleading, or deceptive statement or representation or identifies the person by any name other than the name set forth on the license issued by the Commissioner. Identifies ten grounds for suspension or revocation of a license issued under the Act in GS 53-459, including any violation of a provision of the Act or its rules, a course of conduct consisting of a failure to perform debt settlement agreements, or conviction of felony or misdemeanor involving fraud, misrepresentation, or deceit. Specifies that acts of any officer, director, member, trustee, beneficiary, partner, or principal are deemed acts of the licensee for purposes of GS 53-459. Allows a licensee to cancel and surrender its license upon notice to the Commission. Allows for the Commission to impose a civil penalty in GS 53-460 after notice and a hearing for violations of the Act of not more than $1,000 per violation. Directs the clear proceeds of the civil penalty to be remitted to the Civil Penalty and Forfeiture Fund. Authorizes the Commission to issue cease and desist orders, to seek judicial relief for an injunction, and for a court to order receivership in an action brought by the Commission. Provides the referral of a matter to the Attorney General (AG) for investigation in GS 53-462. Authorizes the AG to seek injunctive relief, with or without a referral. Provides for notice to the Commissioner if a suit for injunctive relief is filed. Authorizes the AG to obtain any other relief authorized by law. Requires the AG to identify any debtors that are entitled to restitution within the time described if a court awards restitution. Specifies that the AG is entitled to reasonable attorneys’ fees and costs in any action brought by the AG in GS 53-462.

Provides for administrative hearings by the Commissioner and appeals to the State Banking Commission, with right of judicial review in the Superior Court of Wake County in GS 53-463. Provides a private right of action for a person that suffers loss because of another person's violation of the Act or its rules, including reasonable attorneys’ fees and any other litigation expenses incurred in bringing the act to a prevailing plaintiff. Specifies that a violation of the Act or its rules constitutes an unfair or deceptive trade practice. Makes violations of the act a Class 3 misdemeanor, with each transaction in violation of the Act a separate offense.

Repeals Article 56 of GS Chapter 14 (offenses pertaining to debt adjusting).

Effective January 1, 2026.