EAC Credit Corporation v. Wilson

VAUGHN, Judge.

On the first occasion that the question was presented for review, the Supreme Court of North Carolina held that provisions calling for a debtor to pay attorney’s fees incurred by a creditor in the collection of a debt were contrary to public policy and, therefore, unenforceable. Tinsley v. Hopkins, 111 N.C. 340, 16 S.E. 325. The prohibition against the enforcement of such provisions in negotiable instruments was subsequently made statutory. C.S. 2983, G.S. 25-8. Effective as of 1 July *4831967, Chapter 25 of the General Statutes was repealed by Chapter 700 of the Session Laws of…