[Rev. 11/21/2013 1:00:16
PM--2013]
CHAPTER 649 - COLLECTION AGENCIES
GENERAL PROVISIONS
NRS 649.005 Definitions.
NRS 649.010 “Claim”
defined.
NRS 649.020 “Collection
agency” defined.
NRS 649.025 “Collection
agent” defined.
NRS 649.026 “Commissioner”
defined.
NRS 649.030 “Customer”
defined.
NRS 649.035 “Manager”
defined.
NRS 649.045 Legislative
finding and declaration.
COLLECTION AGENCY ADVISORY BOARD
NRS 649.047 Creation;
members; terms and compensation of members; Chair; quorum; meetings.
NRS 649.049 Powers
of Board.
ADMINISTRATION
NRS 649.051 Administration
and enforcement of chapter.
NRS 649.053 Regulations.
NRS 649.054 Regulations
authorizing collection from location outside of Nevada; standards for trust
accounts.
NRS 649.056 Regulations
prescribing methods of conducting business; investigations and examinations.
NRS 649.057 Investigations
and hearings.
NRS 649.059 Approval
of printed forms.
NRS 649.061 Notification
of results of examination; retention and destruction of papers.
NRS 649.065 Records:
Maintenance by Commissioner; contents; general provisions governing
confidentiality and public inspection.
NRS 649.067 Records:
Certain records relating to investigation deemed confidential; certain records
relating to disciplinary action deemed public records.
LICENSING OF COLLECTION AGENCIES AND COLLECTION AGENTS
NRS 649.075 License
required; exception.
NRS 649.085 Qualifications
of applicant for license.
NRS 649.095 Application
for license: Contents; submission of fingerprints and financial statement;
examination of applicant; withdrawal of application.
NRS 649.105 Bond
or substitute security required; amount and conditions; adjustments in amount.
NRS 649.115 Form
of bond; matters covered by bond; statute of limitations for bringing action on
bond.
NRS 649.119 Deposit
as substitute for bond.
NRS 649.125 Investigation
by Commissioner.
NRS 649.135 Order
approving application; findings.
NRS 649.145 Conditions
for issuance of license; contents of license.
NRS 649.155 Order
denying application; notice of denial.
NRS 649.165 Rights
of licensee.
NRS 649.167 Permit
for branch office; examination of principal office; manager required on
premises.
FOREIGN COLLECTION AGENCIES
NRS 649.171 Certificate
of registration; limitations on business practices; fees; disciplinary action;
regulations.
MANAGERS
NRS 649.175 Manager’s
certificate required.
NRS 649.185 Application
to Commissioner.
NRS 649.196 Applicant
for certificate: Qualifications; requirements; notice of refusal to issue
certificate; request for hearing; withdrawal of application.
NRS 649.205 Examination.
NRS 649.215 Grounds
for refusing examination or suspending or revoking certificate.
NRS 649.225 Issuance
of certificate; notice of manager’s change of residence address.
MISCELLANEOUS PROVISIONS
NRS 649.233 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license or manager’s certificate; duty of Commissioner. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
NRS 649.233 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license or manager’s certificate; duty of Commissioner. [Effective on
the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state
to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings and expires by limitation 2 years after that
date.]
NRS 649.235 Expiration;
licenses and certificates not transferable.
NRS 649.245 Renewal.
NRS 649.250 Recording
of telephone conversations.
FEES
NRS 649.295 Amounts;
deposit.
NRS 649.297 Fee
for failure to submit reports.
NRS 649.300 Payment
of assessment; cooperation with audits and examinations.
CONDUCT OF BUSINESS; PROHIBITED PRACTICES
NRS 649.305 Collection
agency not to operate without manager.
NRS 649.315 Display
of license or certificate.
NRS 649.325 Change
of location of business.
NRS 649.330 Notification
of change in management or ownership of voting stock; application for licensure
of replacement; investigation; costs; waiver.
NRS 649.332 Verification
of debt.
NRS 649.334 Written
agreement to be specific, intelligible and unambiguous; money collected to be
credited first to principal; partial collection of claim prohibited; accounting
of money collected on behalf of customer.
NRS 649.3345 Withdrawal
of claim by customer.
NRS 649.335 Retention
and examinations of records and accounts.
NRS 649.345 Annual
reports to Commissioner.
NRS 649.355 Business
ethics and practices; trust accounts.
NRS 649.365 Approval
of business name required; prohibition against use of certain names, terms and
forms.
NRS 649.370 Violation
of federal Fair Debt Collection Practices Act.
NRS 649.375 Prohibited
practices.
DISCIPLINARY ACTION
NRS 649.385 Investigation
of verified complaint; verified answer; action by Commissioner after informal
hearing.
NRS 649.390 Investigation
of verified complaint concerning unlicensed person; order to cease and desist;
administrative fines; suit to recover fine; cumulative penalties.
NRS 649.395 Authorized
disciplinary action; grounds for disciplinary action; effect of revocation of
license; orders imposing discipline deemed public records.
NRS 649.398 Suspension
of license or manager’s certificate for failure to pay child support or comply
with certain subpoenas or warrants; reinstatement of license or manager’s
certificate. [Effective until 2 years after the date of the repeal of 42 U.S.C.
§ 666, the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance with
certain processes relating to paternity or child support proceedings.]
NRS 649.400 Injunctive
relief.
PENALTIES
NRS 649.435 Criminal
penalty for violations; each day of unlawful operation constitutes separate
offense.
NRS 649.440 Administrative
fine for violations.
_________
GENERAL PROVISIONS
NRS 649.005 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 649.010 to 649.035, inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1969, 829; A 1983, 1710; 1985, 536)
NRS 649.010 “Claim” defined. “Claim”
means any obligation for the payment of money or its equivalent that is past
due.
[Part 2:237:1931; 1931 NCL § 1420.01]—(NRS A 1969,
835; 1995, 999)
NRS 649.020 “Collection agency” defined.
1. “Collection agency” means all persons
engaging, directly or indirectly, and as a primary or a secondary object,
business or pursuit, in the collection of or in soliciting or obtaining in any
manner the payment of a claim owed or due or asserted to be owed or due to
another.
2. “Collection agency” does not include
any of the following unless they are conducting collection agencies:
(a) Individuals regularly employed on a regular
wage or salary, in the capacity of credit men or in other similar capacity upon
the staff of employees of any person not engaged in the business of a
collection agency or making or attempting to make collections as an incident to
the usual practices of their primary business or profession.
(b) Banks.
(c) Nonprofit cooperative associations.
(d) Unit-owners’ associations and the board
members, officers, employees and units’ owners of those associations when
acting under the authority of and in accordance with chapter 116 or 116B
of NRS and the governing documents of the association, except for those
community managers included within the term “collection agency” pursuant to subsection
3.
(e) Abstract companies doing an escrow business.
(f) Duly licensed real estate brokers, except for
those real estate brokers who are community managers included within the term
“collection agency” pursuant to subsection 3.
(g) Attorneys and counselors at law licensed to
practice in this State, so long as they are retained by their clients to
collect or to solicit or obtain payment of such clients’ claims in the usual
course of the practice of their profession.
3. “Collection agency”:
(a) Includes a community manager while engaged in
the management of a common-interest community or the management of an
association of a condominium hotel if the community manager, or any employee,
agent or affiliate of the community manager, performs or offers to perform any act
associated with the foreclosure of a lien pursuant to NRS 116.31162 to 116.31168, inclusive, or 116B.635 to 116B.660, inclusive; and
(b) Does not include any other community manager
while engaged in the management of a common-interest community or the
management of an association of a condominium hotel.
4. As used in this section:
(a) “Community manager” has the meaning ascribed
to it in NRS 116.023 or 116B.050.
(b) “Unit-owners’ association” has the meaning
ascribed to it in NRS 116.011 or 116B.030.
[Part 2:237:1931; 1931 NCL § 1420.01] + [14:237:1931;
1931 NCL § 1420.13]—(NRS A 1969, 835; 2005, 1716, 1867; 2007, 12, 2293)
NRS 649.025 “Collection agent” defined. “Collection
agent” means any person, whether or not regularly employed at a regular wage or
salary, who in the capacity of a credit man or in any other similar capacity
makes a collection, solicitation or investigation of a claim at a place or
location other than the business premises of the collection agency, but does
not include:
1. Employees of a collection agency whose
activities and duties are restricted to the business premises of the collection
agency.
2. The individuals, corporations and
associations enumerated in subsection 2 of NRS 649.020.
(Added to NRS by 1963, 1141; A 1969, 835)
NRS 649.026 “Commissioner” defined. “Commissioner”
means the Commissioner of Financial Institutions.
(Added to NRS by 1983, 1710; A 1987, 1887)—(Substituted
in revision for NRS 649.007)
NRS 649.030 “Customer” defined. “Customer”
means any person authorizing or employing a collection agency for any of the
purposes permitted or authorized by this chapter.
[Part 2:237:1931; 1931 NCL § 1420.01]—(NRS A 1969,
835)
NRS 649.035 “Manager” defined. “Manager”
means a person who:
1. Holds a manager’s certificate;
2. Is designated as the manager of a
collection agency;
3. Shares equally with the holder of a
license to conduct a collection agency the responsibility for the operation of
the collection agency; and
4. Devotes a majority of the hours he or
she works as an employee of the agency to the actual management, operation and
administration of that collection agency.
(Added to NRS by 1969, 829; A 1989, 2035)
NRS 649.045 Legislative finding and declaration. The
Legislature finds and declares that:
1. There exists in this State a need for
more stringent regulatory control over collection agencies to ensure that they
are composed only of responsible and well qualified personnel.
2. It is the purpose of this chapter to:
(a) Bring licensed collection agencies and their
personnel under more stringent public supervision;
(b) Establish a system of regulation to ensure
that persons using the services of a collection agency are properly
represented; and
(c) Discourage improper and abusive collection
methods.
(Added to NRS by 1969, 830; A 1995, 999)
COLLECTION AGENCY ADVISORY BOARD
NRS 649.047 Creation; members; terms and compensation of members; Chair;
quorum; meetings.
1. The Collection Agency Advisory Board,
consisting of five members appointed by the Governor, is hereby created. The
members appointed must be residents of this State and represent collection
agencies.
2. After the initial terms, each member of
the Board serves a term of 4 years. No member may serve more than two
consecutive terms.
3. The Governor shall designate the Chair
of the Board from its members.
4. Three members of the Board constitute a
quorum, and a quorum may exercise all the powers conferred on the Board.
5. The Board shall meet regularly at least
semiannually and may meet at other times upon the call of the Chair. While
engaged in the business of the Board, each member is entitled to the per diem
allowance and travel expenses provided for state officers and employees
generally.
(Added to NRS by 1989, 2034; A 1991, 2211)
NRS 649.049 Powers of Board. The
Collection Agency Advisory Board may make recommendations to the Legislature
concerning the enactment of any legislation it deems necessary or appropriate
relating to collection agencies.
(Added to NRS by 1989, 2034; A 1997, 1622)
ADMINISTRATION
NRS 649.051 Administration and enforcement of chapter. The Commissioner shall administer and enforce
the provisions of this chapter, subject to the administrative supervision of
the Director of the Department of Business and Industry.
(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887; 1993, 1894)
NRS 649.053 Regulations. The
Commissioner shall adopt such regulations as may be necessary to carry out the
provisions of this chapter.
(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887; 1995, 999)
NRS 649.054 Regulations authorizing collection from location outside of
Nevada; standards for trust accounts. The
Commissioner may adopt regulations authorizing collection agencies licensed in
this State to collect from a location outside of this State debts due or
asserted to be due another person in this State. The Commissioner may, by
regulation, establish standards for the establishment and maintenance of trust
accounts to be used by collection agencies collecting debts pursuant to this
section.
(Added to NRS by 1991, 2211; A 1993, 2415)
NRS 649.056 Regulations prescribing methods of conducting business;
investigations and examinations. The
Commissioner may:
1. By regulation prescribe for collection
agencies the method and manner of:
(a) Keeping records.
(b) Preparing and filing financial and other
reports.
(c) Handling trust funds and accounts.
(d) The transfer or assignment of accounts and
other agreements.
(e) Using fair practices for the solicitation of
business and collection of accounts.
(f) The operation of such other phases of the
business as may be necessary to promote the best interests of the industry and
the public.
2. Conduct such investigations or
examinations of collection agencies, their personnel, activities, books,
records and other matters as may be necessary to ensure compliance with the
purposes and provisions of this chapter.
(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887)
NRS 649.057 Investigations and hearings. In
the conduct of any investigation or hearing, the Commissioner may:
1. Compel the attendance of any person by
subpoena.
2. Administer oaths.
3. Examine any person under oath
concerning the business and conduct of affairs of any person subject to the
provisions of this chapter and in connection therewith require the production
of any books, records or papers relevant to the inquiry.
(Added to NRS by 1987, 1507)
NRS 649.059 Approval of printed forms. The
Commissioner may require collection agencies to submit any printed form of
agreements, listing sheets, acknowledgments, communications or other documents
used in its business for the Commissioner’s approval or disapproval.
(Added to NRS by 1969, 830; A 1983, 1711; 1987, 1888)
NRS 649.061 Notification of results of examination; retention and
destruction of papers.
1. The Commissioner shall notify all
applicants for licensure or certification of the results of any examination
taken under this chapter, by certified mail, as soon as the results are
available.
2. All examination papers must be kept on
file in the Office of the Commissioner for at least 1 year, after which they
may be destroyed.
(Added to NRS by 1969, 833; A 1983, 1711; 1985, 314; 1987, 1888)
NRS 649.065 Records: Maintenance by Commissioner; contents; general
provisions governing confidentiality and public inspection.
1. The Commissioner shall keep in the
Office of the Commissioner, in a suitable record provided for the purpose, all
applications for certificates, licenses and all bonds required to be filed
under this chapter. The record must state the date of issuance or denial of the
license or certificate and the date and nature of any action taken against any
of them.
2. All licenses and certificates issued
must be sufficiently identified in the record.
3. All renewals must be recorded in the
same manner as originals, except that, in addition, the number of the preceding
license or certificate issued must be recorded.
4. Except for confidential information
contained therein, the record must be open for inspection as a public record in
the Office of the Commissioner.
[12:237:1931; 1931 NCL § 1420.11]—(NRS A 1959, 828;
1969, 841; 1983, 1711; 1985, 314, 376; 1987, 1888)
NRS 649.067 Records: Certain records relating to investigation deemed
confidential; certain records relating to disciplinary action deemed public
records.
1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Commissioner, all documents and other information filed with the
complaint and all documents and other information compiled as a result of an
investigation conducted to determine whether to initiate disciplinary action
are confidential.
2. The complaint or other document filed
by the Commissioner to initiate disciplinary action and all documents and
information considered by the Commissioner when determining whether to impose
discipline are public records.
(Added to NRS by 2003, 3475; A 2007, 2149)
LICENSING OF COLLECTION AGENCIES AND COLLECTION AGENTS
NRS 649.075 License required; exception.
1. Except as otherwise provided in this
section, a person shall not conduct within this State a collection agency or
engage within this State in the business of collecting claims for others, or of
soliciting the right to collect or receive payment for another of any claim, or
advertise, or solicit, either in print, by letter, in person or otherwise, the
right to collect or receive payment for another of any claim, or seek to make
collection or obtain payment of any claim on behalf of another without having
first applied for and obtained a license from the Commissioner.
2. A person is not required to obtain a
license if the person holds a certificate of registration as a foreign
collection agency issued by the Commissioner pursuant to NRS
649.171.
[1:237:1931; 1931 NCL § 1420]—(NRS A 1969, 836; 1983,
1711; 1987,
1888; 1993,
2415; 2005,
1867; 2007,
2500)
NRS 649.085 Qualifications of applicant for license. Every individual applicant, every officer and
director of a corporate applicant, and every member of a firm or partnership
applicant for a license as a collection agency or collection agent must submit
proof satisfactory to the Commissioner that he or she:
1. Is a citizen of the United States or
lawfully entitled to remain and work in the United States.
2. Has a good reputation for honesty,
trustworthiness and integrity and is competent to transact the business of a
collection agency in a manner which protects the interests of the general
public.
3. Has not had a collection agency license
suspended or revoked within the 10 years immediately preceding the date of the
application.
4. Has not been convicted of, or entered a
plea of nolo contendere to:
(a) A felony relating to the practice of
collection agencies or collection agents; or
(b) Any crime involving fraud, misrepresentation
or moral turpitude.
5. Has not made a false statement of
material fact on the application.
6. Will maintain one or more offices in
this State or one or more offices in another state for the transaction of the
business of his or her collection agency.
7. Has established a plan to ensure that
his or her collection agency will provide the services of a collection agency
adequately and efficiently.
(Added to NRS by 1963, 1141; A 1969, 836; 1975, 1297;
1995, 999; 2003, 2731; 2007, 2500)
NRS 649.095 Application for license: Contents; submission of fingerprints
and financial statement; examination of applicant; withdrawal of application.
1. An application for a license must be in
writing and filed with the Commissioner on a form provided for that purpose.
2. The application must state:
(a) The name of the applicant and the name under
which the applicant does business or expects to do business.
(b) The address of the applicant’s business and
residence, including street and number.
(c) The character of the business sought to be
carried on.
(d) The locations by street and number where the
business will be transacted.
(e) In the case of a firm or partnership, the
full names and residential addresses of all members or partners and the name and
residential address of the manager.
(f) In the case of a corporation or voluntary
association, the name and residential address of each of the directors and
officers and the name and residential address of the manager.
(g) Any other information reasonably related to
the applicant’s qualifications for the license which the Commissioner
determines to be necessary.
(h) All information required to complete the
application.
3. In addition to any other requirements,
each applicant or member, partner, director, officer or manager of an applicant
shall submit to the Commissioner a complete set of fingerprints and written
permission authorizing the Division of Financial Institutions of the Department
of Business and Industry to forward the fingerprints to the Central Repository
for Nevada Records of Criminal History for submission to the Federal Bureau of
Investigation for its report.
4. The application must be subscribed by
the applicant and acknowledged.
5. Every applicant may be examined
concerning the applicant’s competency, experience, character and qualifications
by the Commissioner or the Commissioner’s authorized agent, and if the
examination reveals that the applicant lacks any of the required
qualifications, issuance of the license must be denied. Every application must
have attached to it a financial statement showing the assets, liabilities and
net worth of the applicant.
6. The Commissioner shall consider an
application to be withdrawn if the Commissioner has not received all
information and fees required to complete the application within 6 months after
the date the application is first submitted to the Commissioner or within such
later period as the Commissioner determines in accordance with any existing
policies of joint regulatory partners. If an application is deemed to be
withdrawn pursuant to this subsection or if an applicant otherwise withdraws an
application, the Commissioner may not issue a license to the applicant unless
the applicant submits a new application and pays any required fees.
[3:237:1931; 1931 NCL § 1420.02]—(NRS A 1959, 826;
1963, 1142; 1967, 955; 1969, 836; 1983, 679, 1712; 1987, 1888; 1997, 2178; 2005, 1868, 2794, 2807; 2007, 98)
NRS 649.105 Bond or substitute security required; amount and conditions;
adjustments in amount.
1. An applicant for a license must file
with the Commissioner, concurrently with the application, a bond in the sum of
$35,000, or an appropriate substitute pursuant to NRS
649.119, which must run to the State of Nevada. The bond must be made and
executed by the principal and a surety company authorized to write bonds in the
State of Nevada.
2. The bonds must be conditioned:
(a) That the principal, who must be the
applicant, must, upon demand in writing, pay any customer from whom any claim
for collection is received, the proceeds of the collection, in accordance with
the terms of the agreement made between the principal and the customer; and
(b) That the principal must comply with all
requirements of this or any other statute with respect to the duties,
obligations and liabilities of collection agencies.
3. Not later than 3 months after the issuance
of the license and semiannually thereafter, the Commissioner shall determine
the appropriate amount of bond or appropriate substitute which must be
maintained by the licensee in accordance with the licensee’s average monthly
balance in the trust account maintained pursuant to NRS
649.355:
AMOUNT
OF
AVERAGE MONTHLY BALANCE BOND
REQUIRED
Less than $100,000........................................................................................ $35,000
$100,000 or more but less than
$150,000................................................... 40,000
$150,000 or more but less than
$200,000................................................... 50,000
$200,000 or more............................................................................................. 60,000
[Part 4:237:1931; A 1935, 227; 1931 NCL §
1420.03]—(NRS A 1959, 826; 1981, 1432; 1983, 679, 1712; 1987, 1889; 1989, 518; 1995, 1000; 2005, 1869)
NRS 649.115 Form of bond; matters covered by bond; statute of limitations
for bringing action on bond.
1. The bond must be in a form approved by
the Division of Financial Institutions of the Department of Business and
Industry and conditioned that the applicant conduct his or her business in
accordance with the requirements of this chapter.
2. The bond must cover all matters placed
with the licensee during the term of the license so applied for, or a renewal
thereof.
3. No action may be brought upon any bond
after the expiration of 2 years from the revocation or expiration of the
license.
4. After the expiration of the period of 2
years, all liability of the surety or sureties upon the bond ceases if no
action is commenced upon the bond before the expiration of the period.
[Part 4:237:1931; A 1935, 227; 1931 NCL § 1420.03] +
[10:237:1931; 1931 NCL § 1420.09]—(NRS A 1967, 955; 1983, 1713; 1993, 1894)
NRS 649.119 Deposit as substitute for bond.
1. An applicant for a license may deposit
with any bank or trust company authorized to do business in this State, with
the permission of the Commissioner, as a substitute for the surety bond
required by NRS 649.105:
(a) An obligation of a bank, savings and loan
association, thrift company or credit union licensed to do business in this
State;
(b) Bills, bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality thereof, or
guaranteed by the United States; or
(c) Any obligation of this State or any city,
county, town, school district or other instrumentality of this State or
guaranteed by this State, in an aggregate amount, based upon principal amount
or market value, whichever is lower.
Ê The deposit
must be in a form approved by the Commissioner.
2. The obligations of a bank, savings and
loan association, thrift company or credit union must be held to secure the
same obligation as would the surety bond. With the approval of the
Commissioner, the depositor may substitute other suitable obligations for those
deposited which must be assigned to the State of Nevada and are negotiable only
upon approval by the Commissioner.
3. Any interest or dividends earned on the
deposit accrue to the account of the depositor.
4. The deposit must be an amount at least
equal to the required surety bond and must state that the amount may not be
withdrawn except by direct and sole order of the Commissioner.
5. An applicant is not relieved of the
obligation to file the required surety bond until the Commissioner has had a
reasonable amount of time to verify whether a deposit made pursuant to this
section qualifies as a substitute for the required surety bond.
(Added to NRS by 1981, 1431; A 1983, 1713; 1987, 1889; 2005, 1870)
NRS 649.125 Investigation by Commissioner. Upon
receiving an application for a license and bond in proper form along with
payment of the required fee, the Commissioner shall investigate all the facts
stated in the application and the requirements of NRS
649.135.
(Added to NRS by 1969, 830; A 1983, 1320, 1714; 1987, 1890)
NRS 649.135 Order approving application; findings. The
Commissioner shall enter an order approving the application for a license, keep
on file his or her findings of fact pertaining thereto, and permit the
applicant to take the required examination, if the Commissioner finds that the
applicant has met all the other requirements of this chapter pertaining to the
applicant’s qualifications and application.
(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1890; 1995, 1000)
NRS 649.145 Conditions for issuance of license; contents of license.
1. If the Commissioner enters an order
approving the application in accordance with NRS
649.135 and the applicant passes the required examination, pays the
required license fee and submits all information required to complete the
application, the Commissioner shall grant and issue a license to the applicant.
2. The license, when issued, must state:
(a) The name of the licensee.
(b) The locations by street and number where the
licensee is authorized to carry on business.
(c) The number and the date of the license.
(d) That it is issued pursuant to this chapter,
and that the licensee is authorized under this chapter.
[Part 5:237:1931; 1931 NCL § 1420.04]—(NRS A 1959,
826; 1963, 1142; 1969, 837; 1983, 1714; 1987, 1890; 1997, 2179; 2005, 2794, 2807)
NRS 649.155 Order denying application; notice of denial.
1. If the Commissioner finds that any
application or applicant for a collection agency license does not meet the
requirements of NRS 649.135 or the applicant fails
to pass the required examination, the Commissioner shall enter an order denying
the application.
2. Within 10 days after the entry of such
an order, the Commissioner shall mail or deliver to the applicant written
notice of the denial in which all the reasons for such denial are stated.
(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1891)
NRS 649.165 Rights of licensee. Upon
receipt of the license, the licensee shall have the right to conduct the
business of a collection agency with all the powers and privileges contained
in, but subject to, the provisions of this chapter.
[Part 5:237:1931; 1931 NCL § 1420.04]—(Substituted in
revision for NRS 649.100)
NRS 649.167 Permit for branch office; examination of principal office;
manager required on premises.
1. A collection agency licensed in this
State may apply to the Commissioner for a permit to operate a branch office in
this State in a location not previously approved by its license.
2. The Commissioner shall not issue a
permit for a branch office until the principal office of the collection agency
has been examined by the Commissioner and found to be satisfactory.
3. A branch office must have a manager on
the premises during regular business hours.
4. The Commissioner shall adopt
regulations concerning an application for a permit to operate a branch office.
(Added to NRS by 1987, 1508; A 1991, 2211)
FOREIGN COLLECTION AGENCIES
NRS 649.171 Certificate of registration; limitations on business practices;
fees; disciplinary action; regulations.
1. A person who is not licensed in this
State as a collection agency may apply to the Commissioner for a certificate of
registration as a foreign collection agency.
2. To be issued and to hold a certificate
of registration as a foreign collection agency, a person:
(a) Must meet the qualifications to do business
as a collection agency in this State;
(b) Must not have any employees or agents present
in this State who engage in the collection of claims and must not maintain any
business locations in this State as a collection agency;
(c) Must submit proof to the Commissioner, upon
application and upon each annual renewal of the certificate of registration,
that the person and his or her employees and agents will not, in this State:
(1) Engage in the business of soliciting
the right to collect or receive payment for another of any claim;
(2) Respond to a bid, proposal or
invitation for the right to collect or receive payment for another of any
claim, unless the bid, proposal or invitation is for the collection of claims
owed by residents of another state; or
(3) Advertise or solicit, either in print,
by letter, in person or otherwise, the right to collect or receive payment for
another of any claim;
(d) When collecting claims against debtors who
are present in this State, must:
(1) Limit his or her activities and those
of his or her employees and agents to interstate communications by telephone,
mail or facsimile;
(2) Limit his or her activities and those
of his or her employees and agents to the collection of claims from residents
of this State on behalf of residents of another state; and
(3) Comply with the requirements of NRS 649.305 to 649.375,
inclusive, with regard to his or her activities and those of his or her
employees and agents;
(e) Must pay:
(1) A fee to apply for a certificate of
registration of not less than $200 prorated on the basis of the registration
year as determined by the Commissioner; and
(2) An annual renewal fee of not more than
$200;
(f) Must deposit and maintain a bond or an
appropriate substitute for the bond in the same manner as an applicant or
licensee pursuant to NRS 649.105, 649.115 and 649.119;
(g) Must maintain the accounts, books and records
of the collection agency in accordance with generally accepted accounting
principles and in accordance with the requirements of subsection 1 of NRS 649.335; and
(h) Must pay any fees related to any examination
of the accounts, books and records of the collection agency conducted by the
Commissioner pursuant to subsection 3.
3. The Commissioner may conduct an annual
examination and any additional examinations pursuant to NRS
649.335 of the accounts, books and records of each person who holds a
certificate of registration as a foreign collection agency.
4. The Commissioner may take disciplinary
action pursuant to NRS 649.385, 649.390 and 649.395
against a person who holds a certificate of registration as a foreign
collection agency for any act or omission that would be grounds for taking such
disciplinary action under those sections.
5. The Commissioner shall adopt:
(a) Regulations establishing the amount of the
fees required pursuant to this section; and
(b) Any other regulations as may be necessary to
carry out the provisions of this section.
(Added to NRS by 2005, 1865; A 2007, 2501)
MANAGERS
NRS 649.175 Manager’s certificate required. No
person may be the manager of a collection agency unless the person holds a
valid manager’s certificate issued pursuant to the provisions of this chapter.
(Added to NRS by 1969, 831; A 1983, 1714)
NRS 649.185 Application to Commissioner. Each
person who is, or desires to become, the manager of a collection agency shall
submit an application for a manager’s certificate to the Commissioner in
accordance with the provisions of this chapter. The application must include
all information required to complete the application.
(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1891; 1997, 2179; 2005, 2794, 2807)
NRS 649.196 Applicant for certificate: Qualifications; requirements; notice
of refusal to issue certificate; request for hearing; withdrawal of
application.
1. Each applicant for a manager’s
certificate must submit proof satisfactory to the Commissioner that the
applicant:
(a) Is a citizen of the United States or lawfully
entitled to remain and work in the United States.
(b) Is at least 21 years of age.
(c) Has a good reputation for honesty,
trustworthiness and integrity and is competent to transact the business of a
collection agency in a manner which protects the interests of the general
public.
(d) Has not committed any of the acts specified
in NRS 649.215.
(e) Has not had a collection agency license or
manager’s certificate suspended or revoked within the 10 years immediately
preceding the date of filing the application.
(f) Has not been convicted of, or entered a plea
of nolo contendere to, a felony or any crime involving fraud, misrepresentation
or moral turpitude.
(g) Has had not less than 2 years’ full-time
experience with a collection agency in the collection of accounts assigned by
creditors who were not affiliated with the collection agency except as
assignors of accounts. At least 1 year of the 2 years of experience must have
been within the 18-month period preceding the date of filing the application.
2. Each applicant must:
(a) Pass the examination or reexamination
provided for in NRS 649.205.
(b) Pay the required fees.
(c) Submit, in such form as the Commissioner
prescribes:
(1) Three recent photographs; and
(2) Three complete sets of fingerprints
which the Commissioner may forward to the Central Repository for Nevada Records
of Criminal History for submission to the Federal Bureau of Investigation for
its report.
(d) Submit such other information reasonably
related to his or her qualifications for the manager’s certificate as the
Commissioner determines to be necessary.
3. The Commissioner may refuse to issue a
manager’s certificate if the applicant does not meet the requirements of
subsections 1 and 2.
4. If the Commissioner refuses to issue a
manager’s certificate pursuant to this section, the Commissioner shall notify
the applicant in writing by certified mail stating the reasons for the refusal.
The applicant may submit a written request for a hearing within 20 days after
receiving the notice. If the applicant fails to submit a written request within
the prescribed period, the Commissioner shall enter a final order.
5. The Commissioner shall consider an
application to be withdrawn if the Commissioner has not received all
information and fees required to complete the application within 6 months after
the date the application is first submitted to the Commissioner or within such
later period as the Commissioner determines in accordance with any existing
policies of joint regulatory partners. If an application is deemed to be
withdrawn pursuant to this subsection or if an applicant otherwise withdraws an
application, the Commissioner may not issue a license to the applicant unless
the applicant submits a new application and pays any required fees.
(Added to NRS by 1969, 831; A 1977, 1568; 1983, 680,
1715; 1987,
1891; 1995,
1000; 2003,
2865; 2005,
1870)
NRS 649.205 Examination.
1. The Commissioner shall provide for
managers’ examinations at such times and places as the Commissioner may direct,
at least twice each year.
2. The examinations must be of a length,
scope and character which the Commissioner deems reasonably necessary to
determine the fitness of the applicants to act as managers of collection
agencies.
3. If an applicant does not pass the
examination, the applicant must reapply to take the examination and pay a
reexamination fee of not more than $100 for each subsequent examination. The
Commissioner shall adopt regulations establishing the amount of the
reexamination fee required pursuant to this subsection.
4. The Commissioner may make such rules
and regulations as may be necessary to carry out the purposes of this section.
(Added to NRS by 1969, 831; A 1983, 1715; 1987, 1891; 2005, 1871)
NRS 649.215 Grounds for refusing examination or suspending or revoking
certificate. The Commissioner may
refuse to permit an applicant for a manager’s certificate to take the
examination, or, after a hearing, may suspend or revoke a manager’s certificate
if the applicant or manager has:
1. Committed or participated in any act
which, if committed or done by a licensee, would be grounds for the suspension
or revocation of a license.
2. Been refused a license or certificate
pursuant to this chapter or had such a license or certificate suspended or
revoked.
3. Participated in any act, which act was
a basis for the refusal or revocation of a collection agency license.
4. Falsified any of the information
submitted to the Commissioner in support of an application pursuant to this
chapter.
5. Impersonated, or permitted or aided and
abetted another to impersonate, a law enforcement officer or employee of the
United States, a state or any political subdivision thereof.
6. Made any statement in connection with
his or her employment with a collection agency with the intent to give an
impression that he or she was a law enforcement officer of the United States, a
state or political subdivision thereof.
(Added to NRS by 1969, 832; A 1983, 1715; 1985, 314; 1987, 1892; 1995, 1001)
NRS 649.225 Issuance of certificate; notice of manager’s change of residence
address.
1. The Commissioner shall issue a
manager’s certificate to any applicant who meets the requirements of this
chapter for the certificate.
2. Each manager holding a manager’s
certificate issued pursuant to this chapter shall notify the Commissioner in
writing of any change in his or her residence address within 10 days after the
change.
(Added to NRS by 1969, 832; A 1983, 1716; 1987, 1892)
MISCELLANEOUS PROVISIONS
NRS 649.233 Payment of child support: Submission of certain information by
applicant; grounds for denial of license or manager’s certificate; duty of
Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain
processes relating to paternity or child support proceedings.]
1. In addition to any other requirements
set forth in this chapter:
(a) A natural person who applies for the issuance
of a license as a collection agent or agency or a manager’s certificate shall
include the social security number of the applicant in the application
submitted to the Commissioner.
(b) A natural person who applies for the issuance
or renewal of a license as a collection agent or agency or a manager’s
certificate shall submit to the Commissioner the statement prescribed by the
Division of Welfare and Supportive Services of the Department of Health and
Human Services pursuant to NRS 425.520.
The statement must be completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license or certificate; or
(b) A separate form prescribed by the
Commissioner.
3. A license as a collection agent or
agency or a manager’s certificate may not be issued or renewed by the
Commissioner if the applicant is a natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2177; A 2005, 2795, 2807)
NRS 649.233 Payment of child support:
Submission of certain information by applicant; grounds for denial of license
or manager’s certificate; duty of Commissioner. [Effective on the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support proceedings
and expires by limitation 2 years after that date.]
1. In addition to any other requirements
set forth in this chapter, a natural person who applies for the issuance or
renewal of a license as a collection agent or agency or a manager’s certificate
shall submit to the Commissioner the statement prescribed by the Division of
Welfare and Supportive Services of the Department of Health and Human Services
pursuant to NRS 425.520. The statement
must be completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license or certificate; or
(b) A separate form prescribed by the
Commissioner.
3. A license as a collection agent or
agency or a manager’s certificate may not be issued or renewed by the
Commissioner if the applicant is a natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2177; A 2005, 2795, 2807,
effective on the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
NRS 649.235 Expiration; licenses and certificates not transferable. Each collection agency license and manager’s
certificate issued pursuant to this chapter shall expire on June 30 of the year
following its issuance and thereafter shall expire on June 30 of each year. A
license or certificate shall not be transferable.
[Part 8:237:1931; 1931 NCL § 1420.07]—(NRS A 1969,
838)—(Substituted in revision for NRS 649.130)
NRS 649.245 Renewal.
1. A collection agency or manager desiring
a renewal of a license or certificate which will expire shall file in the
Office of the Commissioner, on or before June 1 in each year following the year
of original issuance, a renewal application, stating in addition to the matters
required in the original application the date and number of the license or
certificate which will expire. The renewal application must be accompanied by
the renewal fee and all information required to complete the renewal
application.
2. The Commissioner shall issue a renewal
license or certificate to the applicant, which must be dated July 1 next
ensuing the date of the application, in form and text like the original except
that, in addition, the renewal must include the date and number of the earliest
license or certificate issued.
3. All requirements of this chapter with
respect to original certificates, licenses and bonds apply with like force to
all renewal certificates, licenses and bonds except as otherwise specified in
this section.
4. The Commissioner shall refuse to renew
a certificate or license if at the time of application a proceeding to revoke or
suspend the certificate or license is pending.
[9:237:1931; 1931 NCL § 1420.08]—(NRS A 1959, 827;
1963, 1143; 1969, 838; 1983, 1716; 1985, 376; 1987, 1892; 1997, 2179; 2005, 2796, 2807)
NRS 649.250 Recording of telephone conversations.
1. After providing notice that the
telephone conversation will be recorded, a person may record any telephone call
that:
(a) Concerns a claim which is owed or asserted to
be owed by the person;
(b) Is made by a collection agency or collection
agent; and
(c) Is received by the person.
2. A person who records a telephone call
pursuant to this section is required to make a statement immediately after the
recording begins that the telephone call is being recorded.
3. As used in this section, “record” means
the acquisition of the contents of a wire communication through the use of a
recording device.
(Added to NRS by 2007, 2499)
FEES
NRS 649.295 Amounts; deposit.
1. A nonrefundable fee of not more than
$500 for the application and survey must accompany each new application for a
license as a collection agency. Each applicant shall also pay any additional
expenses incurred in the process of investigation. All money received by the
Commissioner pursuant to this subsection must be placed in the Investigative
Account created by NRS 232.545.
2. A fee of not less than $200 or more
than $600, prorated on the basis of the licensing year as provided by the Commissioner,
must be charged for each original license issued. A fee of not more than $500
must be charged for each annual renewal of a license.
3. A fee of not more than $20 must be
charged for each duplicate license or license for a transfer of location issued.
4. A nonrefundable application fee of not
more than $500 and a nonrefundable investigation fee of not more than $150 must
accompany each application for a manager’s certificate.
5. A fee of not more than $40 must be
charged for each manager’s certificate issued and for each annual renewal of
such a certificate.
6. A fee of not more than $60 must be
charged for the reinstatement of a manager’s certificate.
7. A fee of not more than $10 must be
charged for each day an application for the renewal of a license or
certificate, or a required report, is filed late, unless the fee or portion
thereof is excused by the Commissioner for good cause shown.
8. A nonrefundable fee of not more than
$250 for the application and an examination must accompany each application for
a permit to operate a branch office of a licensed collection agency. A fee of
not more than $500 must be charged for each annual renewal of such a permit.
9. For each examination the Commissioner
shall charge and collect from the licensee a fee for conducting the examination
and preparing and typing the report of the examination at the rate established
pursuant to NRS 658.101. Failure to pay
the fee within 30 days after receipt of the bill is a ground for revoking the
collection agency’s license.
10. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section.
11. Except as otherwise provided in
subsection 1, all money received by the Commissioner pursuant to this chapter
must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[6:237:1931; 1931 NCL § 1420.05]—(NRS A 1959, 827;
1967, 956; 1969, 837; 1979, 954; 1981, 756; 1983, 1320, 1717; 1987, 1508, 1893, 2225; 1991, 1804; 2003, 3231; 2005, 1871)
NRS 649.297 Fee for failure to submit reports.
1. If a holder of a license or manager’s
certificate fails to submit any report required pursuant to this chapter or any
regulation adopted pursuant thereto within the prescribed period, the
Commissioner may impose and collect a fee of not more than $10 for each day the
report is overdue.
2. The Commissioner shall adopt
regulations establishing the amount of the fee that may be imposed pursuant to
this section.
(Added to NRS by 2005, 1866)
NRS 649.300 Payment of assessment; cooperation with audits and examinations. Each collection agency shall pay the
assessment levied pursuant to NRS 658.055
and cooperate fully with the audits and examinations performed pursuant
thereto.
(Added to NRS by 1987, 827)
CONDUCT OF BUSINESS; PROHIBITED PRACTICES
NRS 649.305 Collection agency not to operate without manager. No collection agency may operate its business
without a manager who holds a valid manager’s certificate issued under the
provisions of this chapter.
(Added to NRS by 1969, 830; A 1983, 1717)
NRS 649.315 Display of license or certificate. Each
license and certificate issued under this chapter must be framed in a suitable
frame under glass and hung in a conspicuous place upon the walls of the place
of business designated in the license or certificate.
[Part 8:237:1931; 1931 NCL § 1420.07]—(NRS A 1969,
838)—(Substituted in revision for NRS 649.120)
NRS 649.325 Change of location of business.
1. A collection agency shall not remove
its business location from the place of business as stated in the license
except upon prior approval by the Commissioner in writing.
2. If the removal is approved, the
Commissioner shall note the change upon the face of the license and enter in
his or her records a notation of that change.
[7:237:1931; 1931 NCL § 1420.06]—(NRS A 1959, 827;
1969, 838; 1983, 1717; 1987, 1893; 1995, 1002)
NRS 649.330 Notification of change in management or ownership of voting
stock; application for licensure of replacement; investigation; costs; waiver.
1. A collection agency shall immediately
notify the Commissioner of any change:
(a) Of the manager of the agency; or
(b) If the agency is a corporation, in the
ownership of 5 percent or more of its outstanding voting stock.
2. An application must be submitted to the
Commissioner, pursuant to NRS 649.095, by:
(a) The person who replaces the manager; and
(b) A person who acquires:
(1) At least 25 percent of the outstanding
voting stock of an agency; or
(2) Any outstanding voting stock of an
agency if the change will result in a change in the control of the agency.
Ê Except as
otherwise provided in subsection 4, the Commissioner shall conduct an
investigation to determine whether the applicant has the competence,
experience, character and qualifications necessary for the licensing of a
collection agency. If the Commissioner denies the application, the Commissioner
may in his or her order forbid the applicant from participating in the business
of the collection agency.
3. The collection agency with which the
applicant is affiliated shall pay such expenses incurred in the investigation
as the Commissioner deems necessary. All money received by the Commissioner pursuant
to this subsection must be placed in the Investigative Account created by NRS 232.545.
4. A collection agency may submit a
written request to the Commissioner to waive an investigation pursuant to
subsection 2. The Commissioner may grant a waiver if the applicant has
undergone a similar investigation by a state or federal agency in connection
with the licensing of or the applicant’s employment with a financial
institution.
(Added to NRS by 1985, 1344; A 1987, 1894; 1991, 1805)
NRS 649.332 Verification of debt.
1. To verify a debt, a collection agency
shall:
(a) Obtain or attempt to obtain from the creditor
any document that is not in the possession of the collection agency and is
reasonably responsive to the dispute of the debtor, if any; and
(b) If such a document is obtained, mail the
document to the debtor.
2. When collecting a debt on behalf of a
hospital, within 5 days after the initial communication with the debtor in
connection with the collection of the debt, a collection agency shall, unless
the following information is included in the initial communication, send a
written notice to the debtor that includes a statement indicating that:
(a) If the debtor pays or agrees to pay the debt
or any portion of the debt, the payment or agreement to pay may be construed
as:
(1) An acknowledgment of the debt by the
debtor; and
(2) A waiver by the debtor of any
applicable statute of limitations set forth in NRS 11.190 that otherwise precludes the
collection of the debt; and
(b) If the debtor does not understand or has
questions concerning his or her legal rights or obligations relating to the
debt, the debtor should seek legal advice.
3. As used in this section, “hospital” has
the meaning ascribed to it in NRS 449.012.
(Added to NRS by 2007, 2500)
NRS 649.334 Written agreement to be specific, intelligible and unambiguous;
money collected to be credited first to principal; partial collection of claim
prohibited; accounting of money collected on behalf of customer.
1. The terms and conditions of any written
agreement between a collection agency and a customer must be specific,
intelligible and unambiguous. In the absence of a written agreement, unless the
conduct of the parties indicates a different mutual understanding, the
understanding of the customer concerning the terms of the agreement must govern
in any dispute between the customer and the collection agency.
2. Unless a written agreement between the
parties otherwise provides, any money collected on a claim, after court costs
have been recovered, must first be credited to the principal amount of the
claim. Any interest charged and collected on the claim must be allocated
pursuant to the agreement between the customer and the collection agency.
3. Except with the consent of its
customer, a collection agency shall not accept less than the full amount of a
claim in settlement of an assigned claim.
4. A collection agency shall, at the time
it remits to the customer the money it collected on behalf of the customer,
give each customer an accounting in writing of the money it collected on behalf
of the customer in connection with a claim.
(Added to NRS by 1989, 2034)
NRS 649.3345 Withdrawal of claim by customer.
1. Unless a written agreement between the
parties otherwise provides, a customer may withdraw, without obligation, any
claim assigned to a collection agency at any time 6 months after the date of
the assignment if:
(a) The customer gives written notice of the
withdrawal to the collection agency not less than 60 days before the effective
date of the withdrawal; and
(b) The claim is not in the process of being
collected.
2. As used in this section, “in the
process of being collected,” means that:
(a) A payment on the claim has been received
after the date of the assignment;
(b) An action on the claim has been filed by or
on behalf of the collection agency;
(c) The claim has been forwarded to another
collection agency for collection;
(d) A lawful and sufficient claim or notice of
lien has been filed by the collection agency on behalf of the customer to
ensure payment from money distributed in connection with the probate of an
estate, proceeding in bankruptcy, assignment for the benefit of creditors or
any similar proceeding; or
(e) The collection agency has obtained from the
debtor an enforceable written promise to make payment.
3. Upon the withdrawal of any claim, the
collection agency shall return to the customer any documents, records or other
items relating to the claim that have been supplied by the customer.
(Added to NRS by 1989, 2034)
NRS 649.335 Retention and examinations of records and accounts.
1. Every collection agency shall keep all
records concerning each of its accounts for at least 6 years following the
completion of the last transaction concerning the account.
2. The Commissioner shall conduct an
examination of the trust accounts and the records relating to debtors and
customers of each collection agency licensed pursuant to this chapter at least
once each year.
3. If there is evidence that a collection
agency is not complying with the provisions of this chapter, the Commissioner
may conduct an additional examination to determine whether a violation has
occurred.
4. During the first year a collection
agency is licensed, the Commissioner may conduct as many examinations as the
Commissioner deems necessary to ensure compliance with the provisions of this
chapter.
(Added to NRS by 1969, 834; A 1983, 1718; 1987, 1894; 1989, 2035)
NRS 649.345 Annual reports to Commissioner.
1. Each licensed collection agency shall
file with the Commissioner a written report, signed and sworn to by its
manager, no later than January 31 of each year, unless the Commissioner
determines that there is good cause for later filing of the report. The report
must include:
(a) The total sum of money due to all creditors
as of the close of the last business day of the preceding month.
(b) The total sum on deposit in customer trust
fund accounts and available for immediate distribution as of the close of the
last business day of the preceding month, the title of the trust account or
accounts, and the name of the banks or credit unions where the money is
deposited.
(c) The total amount of creditors’ or forwarders’
share of money collected more than 60 days before the last business day of the
preceding month and not remitted by that date.
(d) When the total sum under paragraph (c)
exceeds $10, the name of each creditor or forwarder and the respective share of
each in that sum.
(e) Such other information, audit or reports as
the Commissioner may require.
2. The filing of any report required by
this section which is known by the collection agency to contain false
information or statements constitutes grounds for the suspension of the
agency’s license or the manager’s certificate, or both.
(Added to NRS by 1969, 834; A 1981, 756; 1983, 1718; 1987, 1894; 1989, 921; 1999, 1540)
NRS 649.355 Business ethics and practices; trust accounts.
1. Every collection agency and collection
agent shall openly, fairly and honestly conduct the collection agency business
and shall at all times conform to the accepted business ethics and practices of
the collection agency business.
2. Every licensee shall at all times
maintain a separate account in a bank or credit union in which must be
deposited all money collected. Except as otherwise provided in regulations
adopted by the Commissioner pursuant to NRS 649.054,
the account must be maintained in a bank or credit union located in this State
and bear some title sufficient to distinguish it from the licensee’s personal
or general checking account and to designate it as a trust account, such as
“customer’s trust fund account.” The trust account must at all times contain
sufficient money to pay all money due or owing to all customers, and no
disbursement may be made from the account except to customers or to pay costs
advanced for those customers, except that a licensee may periodically withdraw
from the account such money as may accrue to the licensee from collections
deposited or from adjustments resulting from costs advanced and payments made
directly to customers.
3. Every licensee maintaining a separate
custodial or trust account shall keep a record of all money deposited in the
account, which must indicate clearly the date and from whom the money was
received, the date deposited, the dates of withdrawals and other pertinent
information concerning the transaction, and must show clearly for whose account
the money is deposited and to whom the money belongs. The money must be
remitted to the creditors respectively entitled thereto within 30 days
following the end of the month in which payment is received. The records and
money are subject to inspection by the Commissioner or the Commissioner’s
authorized representative. The records must be maintained at the premises in
this State at which the licensee is authorized to conduct business.
4. If the Commissioner finds that a
licensee’s records are not maintained pursuant to subsections 2 and 3, the
Commissioner may require the licensee to deliver an audited financial statement
prepared from his or her records by a certified public accountant who holds a
certificate to engage in the practice of public accounting in this State. The
statement must be submitted within 60 days after the Commissioner requests it.
The Commissioner may grant a reasonable extension for the submission of the
financial statement if an extension is requested before the statement is due.
(Added to NRS by 1963, 1141; A 1967, 956; 1969, 840;
1983, 1718; 1987,
1509, 1895;
1993, 2416;
1999, 1541)
NRS 649.365 Approval of business name required; prohibition against use of
certain names, terms and forms.
1. A collection agency licensed under this
chapter must obtain the approval of the Commissioner before using or changing a
business name.
2. A collection agency licensed under this
chapter shall not:
(a) Use any business name which is identical or
similar to a business name used by another collection agency licensed under
this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or
confuse the public.
(c) Use the term “credit bureau” in its name
unless it operates a bona fide credit bureau in conjunction with its collection
agency business. For purposes of this paragraph, “credit bureau” means any
person engaged in gathering, recording and disseminating information relative
to the creditworthiness, financial responsibility, paying habits or character
of persons being considered for credit extension for prospective creditors.
(Added to NRS by 1969, 833; A 2005, 1872)
NRS 649.370 Violation of federal Fair Debt Collection Practices Act. A violation of any provision of the federal
Fair Debt Collection Practices Act, 15 U.S.C. §§ 1682 et seq., or any
regulation adopted pursuant thereto, shall be deemed to be a violation of this
chapter.
(Added to NRS by 2007, 2500)
NRS 649.375 Prohibited practices. A
collection agency, or its manager, agents or employees, shall not:
1. Use any device, subterfuge, pretense or
deceptive means or representations to collect any debt, nor use any collection
letter, demand or notice which simulates a legal process or purports to be from
any local, city, county, state or government authority or attorney.
2. Collect or attempt to collect any
interest, charge, fee or expense incidental to the principal obligation unless:
(a) Any such interest, charge, fee or expense as
authorized by law or as agreed to by the parties has been added to the
principal of the debt by the creditor before receipt of the item of collection;
(b) Any such interest, charge, fee or expense as
authorized by law or as agreed to by the parties has been added to the
principal of the debt by the collection agency and described as such in the
first written communication with the debtor; or
(c) The interest, charge, fee or expense has been
judicially determined as proper and legally due from and chargeable against the
debtor.
3. Assign or transfer any claim or account
upon termination or abandonment of its collection business unless prior written
consent by the customer is given for the assignment or transfer. The written
consent must contain an agreement with the customer as to all terms and
conditions of the assignment or transfer, including the name and address of the
intended assignee. Prior written consent of the Commissioner must also be
obtained for any bulk assignment or transfer of claims or accounts, and any
assignment or transfer may be regulated and made subject to such limitations or
conditions as the Commissioner by regulation may reasonably prescribe.
4. Operate its business or solicit claims
for collection from any location, address or post office box other than that
listed on its license or as may be prescribed by the Commissioner.
5. Harass a debtor’s employer in collecting
or attempting to collect a claim, nor engage in any conduct that constitutes
harassment as defined by regulations adopted by the Commissioner.
6. Advertise for sale or threaten to
advertise for sale any claim as a means to enforce payment of the claim, unless
acting under court order.
7. Publish or post, or cause to be
published or posted, any list of debtors except for the benefit of its
stockholders or membership in relation to its internal affairs.
8. Conduct or operate, in conjunction with
its collection agency business, a debt counseling or prorater service for a
debtor who has incurred a debt primarily for personal, family or household
purposes whereby the debtor assigns or turns over to the counselor or prorater
any of the debtor’s earnings or other money for apportionment and payment of
the debtor’s debts or obligations. This section does not prohibit the
conjunctive operation of a business of commercial debt adjustment with a
collection agency if the business deals exclusively with the collection of
commercial debt.
(Added to NRS by 1969, 833; A 1983, 1719; 1987, 1896; 1989, 1448; 1993, 2417)
DISCIPLINARY ACTION
NRS 649.385 Investigation of verified complaint; verified answer; action by
Commissioner after informal hearing.
1. Upon the filing with the Commissioner
of a verified complaint against any collection agency or manager, the Commissioner
shall investigate the alleged violation of the provisions of this chapter.
2. If the Commissioner determines that the
complaint warrants further action, the Commissioner shall send a copy of the
complaint and notice of the date set for an informal hearing to the accused and
the Attorney General.
3. The Commissioner may require the
accused collection agency or manager to file a verified answer to the complaint
within 10 days after service unless, for good cause shown, the Commissioner
extends the time for a period not to exceed 60 days.
4. If at the hearing the complaint is not
explained to the satisfaction of the Commissioner, the Commissioner may take
such action against the accused as may be authorized by the provisions of this
chapter.
[Part 11:237:1931; 1931 NCL § 1420.10]—(NRS A 1959,
827; 1969, 839; 1983, 1720; 1985, 315; 1987, 1897; 1993, 2418)
NRS 649.390 Investigation of verified complaint concerning unlicensed
person; order to cease and desist; administrative fines; suit to recover fine;
cumulative penalties.
1. The Commissioner shall conduct an
investigation if he or she receives a verified complaint from any person that
sets forth reason to believe that an unlicensed person is engaging in an
activity for which a license is required pursuant to this chapter.
2. If the Commissioner determines that an
unlicensed person is engaging in an activity for which a license is required
pursuant to this chapter, the Commissioner shall issue and serve on the person
an order to cease and desist from engaging in the activity until such time as
the person obtains a license from the Commissioner.
3. If a person upon whom an order to cease
and desist is served does not comply with the order within 30 days after
service, the Commissioner shall, after notice and opportunity for a hearing:
(a) Impose upon the person an administrative fine
of $10,000; or
(b) Enter into a written consent agreement with
the person pursuant to which the person agrees to cease and desist from all
unlicensed activity in this State relating to the collection of debts, and
impose upon the person an administrative fine of not less than $5,000 and not
more than $10,000.
Ê The
imposition of an administrative fine pursuant to this subsection is a final
decision for the purposes of judicial review.
4. The Commissioner shall bring suit in
the name and on behalf of the State of Nevada against a person upon whom an
administrative fine is imposed pursuant to subsection 3 to recover the amount
of the administrative fine:
(a) If no petition for judicial review is filed
pursuant to NRS 233B.130 and the fine
remains unpaid for more than 90 days after notice of the imposition of the
fine; or
(b) If a petition for judicial review is filed
pursuant to NRS 233B.130 and the fine
remains unpaid for more than 90 days after exhaustion of any right of appeal in
the courts of this State resulting in a final determination that upholds the
imposition of the fine.
5. A person’s liability for an
administrative fine is in addition to any other penalty provided in this
chapter.
(Added to NRS by 2001, 519)
NRS 649.395 Authorized disciplinary action; grounds for disciplinary action;
effect of revocation of license; orders imposing discipline deemed public
records.
1. The Commissioner may impose an
administrative fine, not to exceed $500 for each violation, or suspend or
revoke the license of a collection agency, or both impose a fine and suspend or
revoke the license, by an order made in writing and filed in the Office of the
Commissioner and served on the licensee by registered or certified mail at the
address shown in the records of the Commissioner, if:
(a) The licensee is adjudged liable in any court
of law for breach of any bond given under the provisions of this chapter; or
(b) After notice and hearing, the licensee is
found guilty of:
(1) Fraud or misrepresentation;
(2) An act or omission inconsistent with
the faithful discharge of the licensee’s duties and obligations; or
(3) A violation of any provision of this
chapter.
2. The Commissioner may suspend or revoke
the license of a collection agency without notice and hearing if:
(a) The suspension or revocation is necessary for
the immediate protection of the public; and
(b) The licensee is afforded a hearing to contest
the suspension or revocation within 20 days after the written order of
suspension or revocation is served upon the licensee.
3. Upon revocation of his or her license,
all rights of the licensee under this chapter terminate, and no application may
be received from any person whose license has once been revoked.
4. An order that imposes discipline and the
findings of fact and conclusions of law supporting that order are public
records.
[Part 11:237:1931; 1931 NCL § 1420.10]—(NRS A 1959,
828; 1969, 95, 839; 1983, 1720; 1987, 1510, 1897; 1993, 2418; 2003, 3475; 2003,
20th Special Session, 224; 2005, 1784)
NRS 649.398 Suspension of license or manager’s certificate for failure to
pay child support or comply with certain subpoenas or warrants; reinstatement
of license or manager’s certificate. [Effective until 2 years after the date of
the repeal of 42 U.S.C. § 666, the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support arrearages
and for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. If the Commissioner receives a copy of
a court order issued pursuant to NRS 425.540
that provides for the suspension of all professional, occupational and
recreational licenses, certificates and permits issued to a person who is the
holder of a license as a collection agent or agency or a manager’s certificate,
the Commissioner shall deem the license or certificate issued to that person to
be suspended at the end of the 30th day after the date on which the court order
was issued unless the Commissioner receives a letter issued to the holder of
the license or certificate by the district attorney or other public agency
pursuant to NRS 425.550 stating that
the holder of the license or certificate has complied with the subpoena or
warrant or has satisfied the arrearage pursuant to NRS 425.560.
2. The Commissioner shall reinstate a
license as a collection agent or agency or a manager’s certificate that has
been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a
letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license or
certificate was suspended stating that the person whose license or certificate
was suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
(Added to NRS by 1997, 2178; A 2005, 2807)
NRS 649.400 Injunctive relief.
1. If upon investigation it appears that a
collection agency is conducting its business in violation of this chapter or
the regulations adopted by the Commissioner, or when it appears that any person
is engaging in the business of a collection agency without being licensed under
the provisions of this chapter, the Commissioner may:
(a) Advise the district attorney of the county in
which the business is conducted, and the district attorney shall cause the
appropriate legal action to be taken to enjoin the operation of the business or
prosecute the violations of this chapter; or
(b) Bring suit in the name and on behalf of the
State of Nevada against such a person and any other person concerned in or in
any way participating in or about to participate in such unsafe or injurious
practices or action in violation of this chapter or the regulations adopted by
the Commissioner to enjoin any such person from continuing or engaging in such
practices or doing any such act.
2. If the Commissioner brings suit, the
district court of any judicial district may grant injunctions to prevent and
restrain such practices or transactions. The court may, during the pendency of
the proceedings before it, issue such temporary restraining orders as may
appear to be just and proper. The findings of the Commissioner shall be deemed
to be prima facie evidence and sufficient grounds, in the discretion of the court,
for the issue ex parte of a temporary restraining order. In any such
proceedings the Commissioner may apply for and on due showing is entitled to
have issued the court’s subpoena requiring forthwith the appearance of any
defendant and his or her employees and the production of such documents, books
and records as appear necessary for the hearing of the petition, to testify and
give evidence concerning the acts or conduct or things complained of in the
application for an injunction.
(Added to NRS by 1987, 1507)
PENALTIES
NRS 649.435 Criminal penalty for violations; each day of unlawful operation
constitutes separate offense. Any
person who violates any provision of this chapter is guilty of a gross
misdemeanor. Each day a person operates a collection agency in violation of the
provisions of this chapter is a separate violation under this section.
[13:237:1931; 1931 NCL § 1420.12]—(NRS A 1959, 828;
1969, 841; 2001,
520)
NRS 649.440 Administrative fine for violations. In
addition to any other remedy or penalty, the Commissioner may impose an
administrative fine of not more than $10,000 upon a person who:
1. Without a license or certificate,
conducts any business or activity for which a license or certificate is
required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter
or any regulation adopted pursuant thereto.
(Added to NRS by 2005, 1867)
