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Statutes

Obligations to pay attorneys' fees upon any note, conditional sale contract or other evidence of indebtedness are valid if collected by or through an attorney at law after maturity and no more than 15% of the balance owed on the note. The party seeking recovery must provide specified notice to the debtor. N.C. Gen. Stat. § 6-21.2

Cases

Comments

Although N.C. Gen. Stat. § 6-21.2(5) (2007) gives no time limit on the giving of the required notice, and such notice may be given after an action is instituted, Gillespie v. De Witt, 53 N.C. App. 252 (1981), the better course of action is to give the written notice in a letter prior to instituting a collection action or to give the notice within the pleadings themselves.

Contributors

Bryon Saintsing, Esq. Tom Gray, Esq.
Smith Debnam Narron Drake Saintsing & Myers, LLP

The statutory information was edited and reviewed with the support of MultiState

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