North Carolina 2025-2026 Regular Session

North Carolina House Bill H515

Introduced
3/25/25  
Refer
3/26/25  
Refer
4/17/25  
Report Pass
4/29/25  
Refer
4/29/25  
Refer
4/30/25  
Report Pass
5/1/25  
Engrossed
5/7/25  

Caption

North Carolina Economic Abuse Prevention Act

Impact

The implementation of HB 515 is expected to alter the legal framework within North Carolina concerning debts resulting from situations of domestic violence. It empowers victims by providing them with a formalized process where they can contest debts deemed coerced. This not only facilitates relief but potentially opens pathways for affected individuals to restore their creditworthiness damaged due to coerced financial obligations. Additionally, it creates financial accountability for those who engage in abusive practices, potentially deterring economic abuse in domestic settings. By amending existing laws to address this specific form of abuse, the bill aligns with broader efforts in social reform and justice for marginalized populations.

Summary

House Bill 515, titled the North Carolina Economic Abuse Prevention Act, aims to provide comprehensive legal remedies for survivors of domestic violence who face economic abuse. This legislation recognizes that monetary coercion significantly complicates the lives of domestic violence survivors and imposes significant barriers to achieving financial independence and security. The Act outlines procedures for victims to establish that a claimed debt was incurred under duress and provides them with several avenues for remediation, including the ability to assert an affirmative defense in debt collection cases. By specifically addressing coerced debt, the bill seeks to regularize the legal process surrounding abused victims' financial liabilities, allowing the courts to intervene in cases where individuals exploit positions of power to impose financial burdens on victims.

Sentiment

General sentiment surrounding HB 515 appears to tilt positively, particularly among advocacy groups focused on domestic violence prevention and women's rights. Supporters of the bill view it as a critical step toward empowering victims and acknowledging the complex realities they face during and after abusive relationships. Conversely, there may be skepticism from creditors or financial companies who could perceive this legislation as complicating collection processes. However, overall, the fostering of a supportive legal environment for domestic violence survivors reflects a societal commitment to protecting vulnerable individuals from economic exploitation.

Contention

Notable points of contention may arise regarding the operationalization of the bill, particularly around the definitions of coerced debt and the evidentiary burden placed on victims. Critics may voice concerns about potential abuse of the provisions intended to protect victims, fearing that debtors could exploit these safeguards. Moreover, the bill's impact on financial institutions and the debt collection industry could lead to discussions on balancing victim protections with the rights of claimants. The effectiveness of the bill heavily relies on the training and resources available to judicial systems and advocates to adequately support and implement these new provisions.

Companion Bills

No companion bills found.

Previously Filed As

NC H561

North Carolina Coerced Debt Relief Act

NC S355

North Carolina Farm Act of 2024

NC S582

North Carolina Farm Act of 2023

NC H557

North Carolina Healing Arts Commission

NC S513

North Carolina Healing Arts Commission

NC H496

North Carolina Work and Save

NC S896

Investing in North Carolina Act

NC H143

North Carolina CROWN Act

NC H581

Investing in North Carolina Act

NC S652

Investing in North Carolina Act

Similar Bills

CA SB975

Debt: coerced debts.

NC S650

Coerced Debt Relief Act

NC H561

North Carolina Coerced Debt Relief Act

TX HB3804

Relating to certain insurance practices with respect to repair of motor vehicles.

MS HB1698

Income tax; allow Department of Human Services to collect debts owed to it through setoff against state income tax refunds.

MS HB1638

Income tax; allow DHS to collect debts owed to it through setoff against state income tax refunds.

MS SB2304

Income tax refunds; provide procedures for MDOR to set off debts owed to MDHS against, and for hearings and appeals.