AN ACT to enhance financial protections for disabled adults and older adults.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 108A of the General Statutes is amended by adding a new Article to read:

Article 6B.

Additional Protections for Disabled Adults and Older Adults.

§ 108A‑118.  Definitions.

The following definitions apply in this Article:

(1)        Covered entity. – Both of the following:

a.         A financial institution, as defined in G.S. 108A‑113.

b.         An entity involved in facilitating or processing an electronic transfer of funds using a payment card.

(2)        Disabled adult. – Defined in G.S. 108A‑101.

(3)        Older adult. – An individual 65 years of age or older who resides in this State.

§ 108A‑119.  Observation of materially harmful behavior or lack of communication; duty to report; no late fees or penalties; no interest.

(a)        If a covered entity observes or suspects that a disabled adult or older adult is exhibiting a pattern of behavior that is materially harmful to the adult's own financial well‑being, or if a disabled adult or older adult has ceased all communication with the covered entity for a period of six months, the covered entity shall report this information to the persons on a list provided under G.S. 108A‑114, if provided, and to the appropriate county department of social services. The covered entity shall not charge the disabled adult or older adult any late fees or other penalties during the period beginning with the earliest of the following until the date the covered entity submits the report:

(1)        The date when the covered entity first observed or suspected the materially harmful pattern of behavior or the date when the adult had ceased all communication with the covered entity for a period of six months.

(2)        If the adult has received a diagnosis of a cognitive impairment and the health care provider has deemed that the adult is not capable of making sound financial decisions, the date of the diagnosis. The adult shall submit a copy of the diagnosis to the covered entity.

(3)        If the adult is receiving cognitive care as a resident of an adult care home, as defined in G.S. 131D‑2.1, the date the adult began receiving cognitive care.

(4)        If the adult has received a diagnosis of a cognitive impairment and is a resident of an adult care home, as defined in G.S. 131D‑2.1, the date of the diagnosis. The adult shall submit a copy of the diagnosis to the covered entity.

(b)        If a covered entity makes a loan, or extends credit, to the disabled adult or older adult during the period described in subsection (a) of this section, the covered entity shall not charge any interest on the loan during that period.

SECTION 2.  G.S. 24‑10.1 reads as rewritten:

§ 24‑10.1.  Late fees.

(a)        Subject to the limitations contained in subsection (b) of this section, any lender may charge a party to a loan or extension of credit governed by G.S. 24‑1.1 or G.S. 24‑1.1A a late payment charge as agreed upon by the parties in the loan contract.

(b)        All of the following limitations apply to a late payment charge:

…

(7)        A late payment charge is subject to the limitations of G.S. 108A‑119.

….

SECTION 3.  This act becomes effective October 1, 2025, and applies to late fees, penalties, and interest charged on or after that date.