Source: https://www.leg.state.nv.us/Division/Legal/LawLibrary/nrs/NRS-604A.html
Timestamp: 2017-10-21 01:02:15
Document Index: 759713514

Matched Legal Cases: ['art 226', '§ 1601', '§ 856', '§ 1002', '§ 1692', '§ 1692']

NRS: CHAPTER 604A - DEFERRED DEPOSIT LOANS, HIGH-INTEREST LOANS, TITLE LOANS AND CHECK-CASHING SERVICES
[Rev. 5/24/2016 4:14:39 PM--2015]
CHAPTER 604A - DEFERRED DEPOSIT LOANS, HIGH-INTEREST LOANS, TITLE LOANS AND CHECK-CASHING SERVICES
NRS 604A.010 Definitions.
NRS 604A.015 “Automated loan machine” defined.
NRS 604A.020 “Cashing” defined.
NRS 604A.025 “Check” defined.
NRS 604A.030 “Check-cashing service” defined.
NRS 604A.035 “Commissioner” defined.
NRS 604A.040 “Customer” defined.
NRS 604A.045 “Default” defined.
NRS 604A.050 “Deferred deposit loan” defined.
NRS 604A.055 “Deferred deposit loan service” defined.
NRS 604A.060 “Electronic transfer of money” defined.
NRS 604A.065 “Extension” defined.
NRS 604A.070 “Grace period” defined.
NRS 604A.0703 “High-interest loan” defined.
NRS 604A.0705 “High-interest loan service” defined.
NRS 604A.075 “Licensee” defined.
NRS 604A.080 “Loan” defined.
NRS 604A.085 “Refund anticipation loan” defined.
NRS 604A.090 “Regulation Z” defined.
NRS 604A.105 “Title loan” defined.
NRS 604A.110 “Title loan service” defined.
NRS 604A.115 “Title to a vehicle” or “title” defined.
NRS 604A.120 “Truth in Lending Act” defined.
NRS 604A.125 “Vehicle” defined.
NRS 604A.150 Additional terms defined under federal law; calculation of amount financed, annual percentage rate and finance charge.
NRS 604A.200 Application of chapter to persons who seek to evade its provisions.
NRS 604A.210 Chapter does not prohibit licensee from offering customer grace period.
NRS 604A.220 Uniformity of application and construction; resolution of conflicts.
NRS 604A.230 Effect of amendment or repeal of chapter on preexisting lawful contracts.
NRS 604A.240 Collection of loans made outside State.
NRS 604A.250 Exemptions from chapter.
NRS 604A.260 Applicability of enforcement provisions of chapter.
NRS 604A.300 Regulations.
NRS 604A.310 Certain relationships between employees of Division of Financial Institutions and licensees prohibited; duty to terminate prohibited relationships.
NRS 604A.400 Unlawful acts; criminal penalties.
NRS 604A.402 Commissioner required to investigate alleged violations of chapter.
NRS 604A.405 Required notices and disclosures.
NRS 604A.407 Determination of whether loan is high-interest loan.
NRS 604A.408 Limitations on original term of deferred deposit and high-interest loans.
NRS 604A.410 Written loan agreement required; contents.
NRS 604A.415 Collection of defaulted loan; civil action to collect debt; venue.
NRS 604A.420 Practices regarding customers who are members of military.
NRS 604A.425 Prohibited acts by licensee regarding amount of loan.
NRS 604A.430 Prohibited acts by licensee regarding multiple loans to same customer.
NRS 604A.435 Prohibited acts by licensee: Accepting certain collateral or other types of security; failing to make certain disclosures; taking incomplete instruments; requiring the purchase of insurance or other goods or services; failing to comply with payment plan; charging fee to cash certain checks.
NRS 604A.440 Prohibited acts by licensee: Improper lending and collection practices; deceptive trade practices; false, misleading and deceptive advertising; using agent, affiliate or subsidiary to avoid requirements or prohibitions of chapter.
NRS 604A.442 Violation of federal law constitutes violation of chapter.
NRS 604A.445 Title loans: Restrictions on duration of loan and periods of extension.
NRS 604A.450 Title loans: Prohibited acts by licensee regarding amount of loan and customer’s ability to repay loan.
NRS 604A.455 Title loans: Applicability of Uniform Commercial Code; repossession of vehicle; civil action.
NRS 604A.460 Rescission of loan by customer.
NRS 604A.465 Payment of loan in full.
NRS 604A.470 Partial payment on loan.
NRS 604A.475 Repayment plan.
NRS 604A.480 Limitations on using proceeds of new loan to pay balance of outstanding loan; exceptions.
NRS 604A.485 Limitations on amounts licensee may collect after default.
NRS 604A.487 Limitations on fees licensees may charge after default on installment payments.
NRS 604A.490 Limitations on fees licensee may collect for check not paid upon presentment or failure of electronic transfer of money; standards for civil liability and criminal prosecution.
NRS 604A.495 Receipt required for each payment by customer; contents.
NRS 604A.500 Requirements regarding person acting as agent or assisting in making loan.
PAYDAY LENDER BEST PRACTICES ACT
NRS 604A.510 Short title.
NRS 604A.515 Applicability.
NRS 604A.520 Required disclosures.
NRS 604A.525 Prohibited fees.
NRS 604A.530 Prohibited advertisements.
NRS 604A.535 Required notices.
NRS 604A.540 Limitations on extended term of loans.
NRS 604A.545 Rescission of loan by customer.
NRS 604A.550 Collection of past due accounts; prohibited acts.
NRS 604A.555 Reporting violations of chapter.
NRS 604A.560 Certain licensees required to offer repayment plan.
NRS 604A.565 Licensee offering services through Internet website required to comply with applicable laws.
NRS 604A.600 Application for license.
NRS 604A.605 Additional materials to be submitted with application; grounds for denial of license.
NRS 604A.610 Surety bond.
NRS 604A.615 Deposit of securities in lieu of surety bond.
NRS 604A.620 Application for license for office or other place of business located outside State.
NRS 604A.625 Investigation of applicant; notice; hearing; order.
NRS 604A.630 Procedure upon denial of license.
NRS 604A.635 Issuance of license; display of license; issuance of additional licenses for branch locations; contents of license; license not transferable or assignable.
NRS 604A.640 Expiration, renewal and reinstatement of license; fees.
NRS 604A.645 Change of control of licensee: Notice; application to Commissioner.
NRS 604A.650 Licensee must conduct business in accordance with license; approval of business name; prohibition against using misleading or confusing business name or printed forms.
NRS 604A.655 Restrictions on location where licensee may conduct business; requirements to conduct business at same location as mortgage broker, mortgage banker or pawnbroker.
NRS 604A.660 Change of address by licensee: Notice; approval by Commissioner; penalty for failure to provide required notice.
RECORDS, REPORTS AND EXAMINATIONS
NRS 604A.700 Required books and records.
NRS 604A.710 Investigation of businesses; examination of books and records by Commissioner.
NRS 604A.720 Authority of Commissioner to require attendance of witnesses and production of books and records.
NRS 604A.730 Annual examinations by Commissioner; exceptions.
NRS 604A.740 Fees for regulatory activities; penalties for failure to pay fees.
NRS 604A.750 Annual report by licensee; composite reports.
NRS 604A.760 Fees for failure to submit reports.
NRS 604A.800 Temporary suspension of license: Conditions; notice; hearing; terms of suspension.
NRS 604A.810 Order to desist and refrain; action to enjoin violation; appointment of receiver.
NRS 604A.820 Procedure for taking disciplinary action; authorized disciplinary action; grounds.
NRS 604A.830 Additional grounds for disciplinary action.
NRS 604A.840 Surrender of license by licensee; effect of surrender.
NRS 604A.850 Preexisting contracts unaffected by revocation, suspension, expiration or surrender of license.
NRS 604A.900 Remedies for certain willful violations.
NRS 604A.910 Administrative fines for unlicensed activity.
NRS 604A.920 Other remedies for unlicensed activity.
NRS 604A.930 Civil action.
NRS 604A.940 Exercise of jurisdiction over party to civil action; service of summons to confer jurisdiction.
NRS 604A.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 604A.015 to 604A.125, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2005, 1683; A 2007, 931)
NRS 604A.015 “Automated loan machine” defined.
1. “Automated loan machine” means any machine or other device, regardless of the name given to it or the technology used, that:
(a) Is automated;
(b) Is designed or intended to allow a customer, without any additional assistance from another person, to receive or attempt to receive a deferred deposit loan or high-interest loan through the machine or other device; and
(c) Is set up, installed, operated or maintained by or on behalf of the person making the loan or any agent, affiliate or subsidiary of the person.
2. The term does not include any machine or other device used directly by a customer to access the Internet unless the machine or other device is made available to the customer by the person making the loan or any agent, affiliate or subsidiary of the person.
NRS 604A.020 “Cashing” defined. “Cashing” means providing currency or a negotiable instrument in exchange for a check.
(Added to NRS by 2005, 1684)
NRS 604A.025 “Check” defined.
1. “Check” means:
(a) A draft, other than a documentary draft, payable on demand and drawn on a bank; or
(b) A cashier’s check or teller’s check.
2. An instrument may be a check even though it is described on its face by another term, such as “money order.”
NRS 604A.030 “Check-cashing service” defined. “Check-cashing service” means any person engaged in the business of cashing checks for a fee, service charge or other consideration.
NRS 604A.035 “Commissioner” defined. “Commissioner” means the Commissioner of Financial Institutions.
NRS 604A.040 “Customer” defined. “Customer” means any person who receives or attempts to receive check-cashing services, deferred deposit loan services, high-interest loan services or title loan services from another person.
(Added to NRS by 2005, 1684; A 2007, 932)
NRS 604A.045 “Default” defined.
1. “Default” means the failure of a customer to:
(a) Make a scheduled payment on a loan on or before the due date for the payment under the terms of a lawful loan agreement and any grace period that complies with the provisions of NRS 604A.210 or under the terms of any lawful extension or repayment plan relating to the loan and any grace period that complies with the provisions of NRS 604A.210; or
(b) Pay a loan in full on or before:
(1) The expiration of the initial loan period as set forth in a lawful loan agreement and any grace period that complies with the provisions of NRS 604A.210; or
(2) The due date of any lawful extension or repayment plan relating to the loan and any grace period that complies with the provisions of NRS 604A.210, provided that the due date of the extension or repayment plan does not violate the provisions of this chapter.
2. A default occurs on the day immediately following the date of the customer’s failure to perform as described in subsection 1.
NRS 604A.050 “Deferred deposit loan” defined. “Deferred deposit loan” means a transaction in which, pursuant to a loan agreement:
1. A customer tenders to another person:
(a) A personal check drawn upon the account of the customer; or
(b) Written authorization for an electronic transfer of money for a specified amount from the account of the customer; and
2. The other person:
(a) Provides to the customer an amount of money that is equal to the face value of the check or the amount specified in the written authorization for an electronic transfer of money, less any fee charged for the transaction; and
(b) Agrees, for a specified period, not to cash the check or execute an electronic transfer of money for the amount specified in the written authorization.
NRS 604A.055 “Deferred deposit loan service” defined. “Deferred deposit loan service” means any person engaged in the business of making deferred deposit loans for a fee, service charge or other consideration.
NRS 604A.060 “Electronic transfer of money” defined. “Electronic transfer of money” means any transfer of money, other than a transaction initiated by a check or other similar instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution to debit or credit an account.
NRS 604A.065 “Extension” defined.
1. “Extension” means any extension or rollover of a loan beyond the date on which the loan is required to be paid in full under the original terms of the loan agreement, regardless of the name given to the extension or rollover.
2. The term does not include a grace period.
(Added to NRS by 2005, 1685)
NRS 604A.070 “Grace period” defined. “Grace period” means any period of deferment offered gratuitously by a licensee to a customer if the licensee complies with the provisions of NRS 604A.210.
NRS 604A.0703 “High-interest loan” defined.
1. “High-interest loan” means a loan made to a customer pursuant to a loan agreement which, under its original terms, charges an annual percentage rate of more than 40 percent.
2. The term includes, without limitation, any single-payment loan, installment loan or open-ended loan which, under its original terms, charges an annual percentage rate of more than 40 percent.
(a) A deferred deposit loan;
(b) A refund anticipation loan; or
(c) A title loan.
(Added to NRS by 2007, 930)
NRS 604A.0705 “High-interest loan service” defined. “High-interest loan service” means any person engaged in the business of providing high-interest loans for a fee, service charge or other consideration.
NRS 604A.075 “Licensee” defined. “Licensee” means any person who has been issued one or more licenses to operate a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service pursuant to the provisions of this chapter.
(Added to NRS by 2005, 1685; A 2007, 932)
NRS 604A.080 “Loan” defined. “Loan” means any deferred deposit loan, high-interest loan or title loan, or any extension or repayment plan relating to such a loan, made at any location or through any method, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means.
NRS 604A.085 “Refund anticipation loan” defined. “Refund anticipation loan” means a loan offered or made to a taxpayer by a lender or through a facilitator based on the taxpayer’s anticipated federal income tax refund.
NRS 604A.090 “Regulation Z” defined. “Regulation Z” means the federal regulations, as amended, 12 C.F.R. Part 226, adopted pursuant to the Truth in Lending Act and commonly known as Regulation Z.
NRS 604A.105 “Title loan” defined.
1. “Title loan” means a loan made to a customer pursuant to a loan agreement which, under its original terms:
(a) Charges an annual percentage rate of more than 35 percent; and
(b) Requires the customer to secure the loan by either:
(1) Giving possession of the title to a vehicle legally owned by the customer to the licensee or any agent, affiliate or subsidiary of the licensee; or
(2) Perfecting a security interest in the vehicle by having the name of the licensee or any agent, affiliate or subsidiary of the licensee noted on the title as a lienholder.
2. The term does not include a loan which creates a purchase-money security interest in a vehicle or the refinancing of any such loan.
NRS 604A.110 “Title loan service” defined. “Title loan service” means any person engaged in the business of providing title loans for a fee, service charge or other consideration.
(Added to NRS by 2005, 1686)
NRS 604A.115 “Title to a vehicle” or “title” defined. “Title to a vehicle” or “title” means a certificate of title or ownership issued pursuant to the laws of this State that identifies the legal owner of a vehicle or any similar document issued pursuant to the laws of another jurisdiction.
NRS 604A.120 “Truth in Lending Act” defined. “Truth in Lending Act” means the federal Truth in Lending Act, as amended, 15 U.S.C. §§ 1601 et seq.
NRS 604A.125 “Vehicle” defined.
1. “Vehicle” means any vehicle, whether or not self-propelled, that is designed or intended for land transportation if the legal owner of the vehicle is required to have a title.
(a) Passenger vehicles;
(b) Recreational vehicles; and
(c) House trailers and travel trailers.
(a) Farm vehicles;
(b) Vehicles of a common or contract carrier;
(c) Commercial vehicles;
(d) Construction vehicles;
(e) Military vehicles;
(f) Vehicles used exclusively upon stationary rails or tracks; or
(g) Any other vehicles which are similar in nature to the vehicles listed in paragraphs (a) to (f), inclusive, and which the Commissioner, by regulation, excludes from the definition of “vehicle.”
NRS 604A.150 Additional terms defined under federal law; calculation of amount financed, annual percentage rate and finance charge.
1. As used in this chapter, unless the context otherwise requires, the following terms have the meanings ascribed to them in the Truth in Lending Act and Regulation Z:
(a) “Amount financed.”
(b) “Annual percentage rate.”
(c) “Finance charge.”
(d) “Payment schedule.”
(e) “Total of payments.”
2. For the purposes of this chapter, proper calculation of the amount financed, annual percentage rate and finance charge for a loan must be made in accordance with the Truth in Lending Act and Regulation Z.
NRS 604A.200 Application of chapter to persons who seek to evade its provisions. The provisions of this chapter apply to any person who seeks to evade its application by any device, subterfuge or pretense, including, without limitation:
1. Calling a loan by any other name;
2. Using any agents, affiliates or subsidiaries in an attempt to avoid the application of the provisions of this chapter; or
3. Having any affiliation or other business arrangement with an entity that is exempt from the provisions of this chapter pursuant to subsection 1 of NRS 604A.250, the effect of which is to evade the provisions of this chapter, including, without limitation, making a loan while purporting to be the agent of such an exempt entity where the purported agent holds, acquires or maintains a preponderant economic interest in the revenues generated by the loan.
(Added to NRS by 2005, 1686; A 2007, 932)
NRS 604A.210 Chapter does not prohibit licensee from offering customer grace period. The provisions of this chapter do not prohibit a licensee from offering a customer a grace period on the repayment of a loan or an extension of a loan, except that the licensee shall not charge the customer:
1. Any fees for granting such a grace period; or
2. Any additional fees or additional interest on the outstanding loan during such a grace period.
NRS 604A.220 Uniformity of application and construction; resolution of conflicts.
1. The provisions of this chapter must be interpreted so as to effectuate their general purpose to provide for, to the extent practicable, uniform regulation of the loans and transactions that are subject to the provisions of this chapter.
2. If there is a conflict between the provisions of this chapter and the provisions of any other general law regulating loans and similar transactions, the provisions of this chapter control.
NRS 604A.230 Effect of amendment or repeal of chapter on preexisting lawful contracts. This chapter or any part thereof may be modified, amended or repealed by the Legislature so as to effect a cancellation or alteration of any license or right of a licensee under this chapter, provided that such cancellation or alteration shall not impair or affect the obligation of any preexisting lawful loan agreement between any licensee and any customer.
(Added to NRS by 2005, 1687)
NRS 604A.240 Collection of loans made outside State. Any loan lawfully made outside this State as permitted by the laws of the state in which the loan was made may be collected or otherwise enforced in this State in accordance with its terms.
NRS 604A.250 Exemptions from chapter. The provisions of this chapter do not apply to:
1. Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage brokers, mortgage bankers, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.
2. A person who is primarily engaged in the retail sale of goods or services who:
(a) As an incident to or independently of a retail sale or service, from time to time cashes checks for a fee or other consideration of not more than $2; and
(b) Does not hold himself or herself out as a check-cashing service.
3. A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.
4. A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.
5. A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.
6. A corporation organized pursuant to the laws of this State that has been continuously and exclusively engaged in a check-cashing service in this State since July 1, 1973.
7. A pawnbroker, unless the pawnbroker operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service.
8. A real estate investment trust, as defined in 26 U.S.C. § 856.
9. An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the plan’s trustee.
10. An attorney at law rendering services in the performance of his or her duties as an attorney at law if the loan is secured by real property.
11. A real estate broker rendering services in the performance of his or her duties as a real estate broker if the loan is secured by real property.
12. Any firm or corporation:
(c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.
13. A person who provides money for investment in loans secured by a lien on real property, on his or her own account.
14. A seller of real property who offers credit secured by a mortgage of the property sold.
15. A person who makes a refund anticipation loan, unless the person operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service.
(Added to NRS by 2005, 1687; A 2007, 933; 2013, 1249)
NRS 604A.260 Applicability of enforcement provisions of chapter. All provisions of this chapter governing enforcement or collection of an obligation originated under this chapter apply to:
1. Any purchaser or assignee of the obligation; and
2. Any person seeking to enforce or collect the obligation on behalf of a licensee.
(Added to NRS by 2007, 931)
NRS 604A.300 Regulations.
1. The Commissioner may establish by regulation the fees that a licensee who provides check-cashing services may impose for cashing checks.
2. The Commissioner shall adopt any other regulations as are necessary to carry out the provisions of this chapter.
(Added to NRS by 2005, 1688)
NRS 604A.310 Certain relationships between employees of Division of Financial Institutions and licensees prohibited; duty to terminate prohibited relationships.
1. Except as otherwise provided in subsection 3, an officer or employee of the Division of Financial Institutions of the Department of Business and Industry shall not:
(a) Be directly or indirectly interested in or act on behalf of any licensee;
(b) Receive, directly or indirectly, any payment from any licensee;
(c) Be indebted to any licensee;
(d) Engage in the negotiation of loans for others with any licensee; or
(e) Obtain credit or services from a licensee conditioned upon a fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division of Financial Institutions in the unclassified service of the State shall not obtain new extensions of credit from a licensee while in office.
3. Any officer or employee of the Division of Financial Institutions may be indebted to a licensee on the same terms as are available to the public generally.
4. If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his or her appointment or employment, or obtains it during his or her employment, he or she shall terminate it within 120 days after the date of his or her appointment or employment or the discovery of the prohibited act.
(Added to NRS by 2005, 1705)
NRS 604A.400 Unlawful acts; criminal penalties.
1. A person, including, without limitation, a person licensed pursuant to chapter 675 of NRS, shall not operate a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service unless the person is licensed with the Commissioner pursuant to the provisions of this chapter.
2. A person must have a license regardless of the location or method that the person uses to operate such a service, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the person shall not operate such a service through any automated loan machine in violation of the provisions of subsection 3.
3. A person shall not operate a deferred deposit loan service or high-interest loan service through any automated loan machine, and the Commissioner shall not issue a license that authorizes the licensee to conduct business through any automated loan machine.
4. Any person, and any member, officer, director, agent or employee thereof, who violates or participates in the violation of any provision of this section is guilty of a misdemeanor.
(Added to NRS by 2005, 1688; A 2005, 22nd Special Session, 97; 2007, 934)
NRS 604A.402 Commissioner required to investigate alleged violations of chapter. If the Commissioner receives information from a registered agent pursuant to NRS 77.410 which indicates that a person may be violating the provisions of this chapter, the Commissioner shall investigate the person and take any appropriate action pursuant thereto.
(Added to NRS by 2007, 2721)
NRS 604A.405 Required notices and disclosures.
1. A licensee shall post in a conspicuous place in every location at which the licensee conducts business under his or her license:
(a) A notice that states the fees the licensee charges for providing check-cashing services, deferred deposit loan services, high-interest loan services or title loan services.
(b) A notice that states a toll-free telephone number to the Office of the Commissioner to handle concerns or complaints of customers.
Ê The Commissioner shall adopt regulations prescribing the form and size of the notices required by this subsection.
2. If a licensee offers loans to customers at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except for an automated loan machine prohibited by NRS 604A.400, the licensee shall, as appropriate to the location or method for making the loan, post in a conspicuous place where customers will see it before they enter into a loan, or disclose in an open and obvious manner to customers before they enter into a loan, a notice that states:
(a) The types of loans the licensee offers and the fees he or she charges for making each type of loan; and
(b) A list of the states where the licensee is licensed or authorized to conduct business from outside this State with customers located in this State.
3. A licensee who provides check-cashing services shall give written notice to each customer of the fees he or she charges for cashing checks. The customer must sign the notice before the licensee provides the check-cashing service.
(Added to NRS by 2005, 1688; A 2007, 934)
NRS 604A.407 Determination of whether loan is high-interest loan.
1. Except as otherwise provided in this section, for the purposes of determining whether a loan is a high-interest loan, when determining whether a lender is charging an annual percentage rate of more than 40 percent, calculations must be made in accordance with the Truth in Lending Act and Regulation Z, except that every charge or fee, regardless of the name given to the charge or fee, payable directly or indirectly by the customer and imposed directly or indirectly by the lender must be included in calculating the annual percentage rate, including, without limitation:
(a) Interest;
(b) Application fees, regardless of whether such fees are charged to all applicants or credit is actually extended;
(c) Fees charged for participation in a credit plan, whether assessed on an annual, periodic or nonperiodic basis; and
(d) Prepaid finance charges.
2. The following charges and fees must be excluded from the calculation of the annual percentage rate pursuant to subsection 1:
(a) Any fees allowed pursuant to NRS 604A.490 or 675.365 for a check not paid upon presentment or an electronic transfer of money that fails;
(b) Interest accrued after default pursuant to paragraph (c) of subsection 1 of NRS 604A.485;
(c) Charges for an unanticipated late payment, exceeding a credit limit, or a delinquency, default or similar occurrence;
(d) Any premiums or identifiable charges for insurance permitted pursuant to NRS 675.300; and
(e) The fee allowed pursuant to NRS 604A.487.
3. Calculation of the annual percentage rate in the manner specified in this section is limited only to the determination of whether a loan is a high-interest loan and must not be used in compliance with the disclosure requirements of paragraph (g) of subsection 2 of NRS 604A.410 or any other provisions of this chapter requiring disclosure of an annual percentage rate in the making of a loan.
(Added to NRS by 2007, 930; A 2013, 1516)
NRS 604A.408 Limitations on original term of deferred deposit and high-interest loans.
1. Except as otherwise provided in this chapter, the original term of a deferred deposit loan or high-interest loan must not exceed 35 days.
2. The original term of a high-interest loan may be up to 90 days if:
(a) The loan provides for payments in installments;
(b) The payments are calculated to ratably and fully amortize the entire amount of principal and interest payable on the loan;
(c) The loan is not subject to any extension; and
(d) The loan does not require a balloon payment of any kind.
3. Notwithstanding the provisions of NRS 604A.480, a licensee shall not agree to establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding deferred deposit loan or high-interest loan for a period that exceeds 90 days after the date of origination of the loan.
NRS 604A.410 Written loan agreement required; contents.
1. Before making any loan to a customer, a licensee shall provide to the customer a written loan agreement which may be kept by the customer and which must be written in:
(a) English, if the transaction is conducted in English; or
(b) Spanish, if the transaction is conducted in Spanish.
2. The loan agreement must include, without limitation, the following information:
(a) The name and address of the licensee and the customer;
(b) The nature of the security for the loan, if any;
(c) The date and amount of the loan, amount financed, annual percentage rate, finance charge, total of payments, payment schedule and a description and the amount of every fee charged, regardless of the name given to the fee and regardless of whether the fee is required to be included in the finance charge under the Truth in Lending Act and Regulation Z;
(d) A disclosure of the right of the customer to rescind a loan pursuant to the provisions of this chapter;
(e) A disclosure of the right of the customer to pay his or her loan in full or in part with no additional charge pursuant to the provisions of this chapter;
(f) A disclosure stating that, if the customer defaults on the loan, the licensee must offer a repayment plan to the customer before the licensee commences any civil action or process of alternative dispute resolution or, if appropriate for the loan, before the licensee repossesses a vehicle; and
(g) Any other disclosures required under the Truth in Lending Act and Regulation Z or under any other applicable federal or state statute or regulation.
(Added to NRS by 2005, 1689; A 2007, 935)
NRS 604A.415 Collection of defaulted loan; civil action to collect debt; venue.
1. If a customer defaults on a loan, the licensee may collect the debt owed to the licensee only in a professional, fair and lawful manner. When collecting such a debt, the licensee must act in accordance with and must not violate sections 803 to 812, inclusive, of the federal Fair Debt Collection Practices Act, as amended, 15 U.S.C. §§ 1692a to 1692j, inclusive, even if the licensee is not otherwise subject to the provisions of that Act.
2. If a licensee commences a civil action against a customer to collect a debt, the court may award:
(a) Court costs;
(b) Costs of service of process, except that the costs must not exceed the amount of the fees charged by the sheriff or constable for service of process in the county where the action was brought or, if the customer was not served in that county, in the county where the customer was served; and
(c) Reasonable attorney’s fees. In determining the amount of the attorney’s fees and whether they are reasonable, the court shall consider the complexity of the case, the amount of the debt and whether the licensee could have used less costly means to collect the debt.
3. Notwithstanding any provision of NRS 66.010 to the contrary, if:
(a) A licensee intends to commence a civil action in a Justice Court against a customer to collect a debt; and
(b) The customer resides in the county where the loan was made,
Ê the licensee is required to commence the civil action in the Justice Court for the township where the loan was made unless, after the date of default and before the licensee commences the civil action, the customer signs an affidavit agreeing to try the action in another Justice Court having jurisdiction over the subject matter and the parties. A licensee shall not, directly or indirectly, require, intimidate, threaten or coerce a customer to sign such an affidavit.
(Added to NRS by 2005, 1689)
NRS 604A.420 Practices regarding customers who are members of military. Notwithstanding any other provision of law:
1. If a customer is a member of the military, a licensee shall:
(a) Honor the terms of any repayment plan between the licensee and customer, including, without limitation, any repayment plan negotiated through military counselors or third-party credit counselors.
(b) Honor any proclamation by a base commander that a certain branch location of the licensee is off-limits to members of the military and their spouses.
2. If a customer is a member of the military, a licensee shall not:
(a) Garnish or threaten to garnish any wages or salary of the customer or the customer’s spouse; or
(b) Contact or threaten to contact the military chain of command of a customer in an effort to collect the loan.
3. If a customer is a member of the military and is deployed to a combat or combat supporting position, a licensee shall not engage in any collection activity against the customer or the customer’s spouse.
4. As used in this section, “military” means the Armed Forces of the United States, a reserve component thereof or the National Guard.
(Added to NRS by 2005, 1690; A 2007, 935, 2847)
NRS 604A.425 Prohibited acts by licensee regarding amount of loan.
1. A licensee shall not:
(a) Make a deferred deposit loan that exceeds 25 percent of the expected gross monthly income of the customer when the loan is made; or
(b) Make a high-interest loan which, under the terms of the loan agreement, requires any monthly payment that exceeds 25 percent of the expected gross monthly income of the customer.
2. A licensee is not in violation of the provisions of this section if the customer presents evidence of his or her gross monthly income to the licensee and represents to the licensee in writing that:
(a) For a deferred deposit loan, the loan does not exceed 25 percent of the customer’s expected gross monthly income when the loan is made; or
(b) For a high-interest loan, the monthly payment required under the terms of the loan agreement does not exceed 25 percent of the customer’s expected gross monthly income.
(Added to NRS by 2005, 1690; A 2007, 936)
NRS 604A.430 Prohibited acts by licensee regarding multiple loans to same customer.
1. A licensee shall not make more than one deferred deposit loan, single-advance, single-payment loan or high-interest loan to the same customer at one time or before any outstanding balance is paid in full on an existing loan made by that licensee to the customer unless:
(a) The customer is seeking multiple loans that do not exceed the limits set forth in NRS 604A.425;
(b) The licensee charges the same or a lower fee or service charge per $100 if it is a deferred deposit loan or single-advance, single-payment loan, or the same or a lower annual percentage rate of interest if it is a high-interest loan that is not a single-advance, single-payment loan, for any additional loans as the licensee charged for the initial loan;
(c) Except for that part of the finance charge which consists of interest only, the licensee does not impose any other charge or fee to initiate any additional loans, except that a licensee who makes deferred deposit loans or high-interest loans in accordance with the provisions of subsection 2 of NRS 604A.480 may charge a reasonable fee for preparing documents in an amount that does not exceed $50; and
(d) If the additional loans are deferred deposit loans and the customer provides one or more additional checks that are not paid upon presentment or one or more electronic transfers of money fail, the licensee does not charge any fees to the customer pursuant to NRS 604A.490, except for the fees allowed pursuant to that section for the first check that is not paid upon presentment or electronic transfer of money that failed.
2. As used in this section, “single-advance, single-payment loan” means a transaction in which, pursuant to a loan agreement, a customer is given a single advance equal to the amount financed with payment in full due within 35 days after the date of the transaction.
NRS 604A.435 Prohibited acts by licensee: Accepting certain collateral or other types of security; failing to make certain disclosures; taking incomplete instruments; requiring the purchase of insurance or other goods or services; failing to comply with payment plan; charging fee to cash certain checks. A licensee shall not:
1. Accept:
(a) Collateral as security for a loan, except that a title to a vehicle may be accepted as security for a title loan.
(b) An assignment of wages, salary, commissions or other compensation for services, whether earned or to be earned, as security for a loan.
(c) A check as security for a high-interest loan or title loan.
(d) More than one check or written authorization for an electronic transfer of money for each deferred deposit loan.
(e) A check or written authorization for an electronic transfer of money for any deferred deposit loan in an amount which exceeds the total of payments set forth in the disclosure statement required by the Truth in Lending Act and Regulation Z that is provided to the customer.
2. Take any note or promise to pay which does not disclose the date and amount of the loan, amount financed, annual percentage rate, finance charge, total of payments, payment schedule and a description and the amount of every fee charged, regardless of the name given to the fee and regardless of whether the fee is required to be included in the finance charge under the Truth in Lending Act and Regulation Z.
3. Take any instrument, including a check or written authorization for an electronic transfer of money, in which blanks are left to be filled in after the loan is made.
4. Make any transaction contingent on the purchase of insurance or any other goods or services or sell any insurance to the customer with the loan.
5. Fail to comply with a payment plan which is negotiated and agreed to by the licensee and customer.
6. Charge any fee to cash a check representing the proceeds of a loan made by the licensee or any agent, affiliate or subsidiary of the licensee.
(Added to NRS by 2005, 1691; A 2007, 936)
NRS 604A.440 Prohibited acts by licensee: Improper lending and collection practices; deceptive trade practices; false, misleading and deceptive advertising; using agent, affiliate or subsidiary to avoid requirements or prohibitions of chapter. A licensee shall not:
1. Use or threaten to use the criminal process in this State or any other state, or any civil process not available to creditors generally, to collect on a loan made to a customer.
2. Commence a civil action or any process of alternative dispute resolution or repossess a vehicle before the customer defaults under the original term of a loan agreement or before the customer defaults under any repayment plan, extension or grace period negotiated and agreed to by the licensee and customer, unless otherwise authorized pursuant to this chapter.
3. Take any confession of judgment or any power of attorney running to the licensee or to any third person to confess judgment or to appear for the customer in a judicial proceeding.
4. Include in any written agreement:
(a) A promise by the customer to hold the licensee harmless;
(b) A confession of judgment by the customer;
(c) An assignment or order for the payment of wages or other compensation due the customer; or
(d) A waiver of any claim or defense arising out of the loan agreement or a waiver of any provision of this chapter. The provisions of this paragraph do not apply to the extent preempted by federal law.
5. Engage in any deceptive trade practice, as defined in chapter 598 of NRS, including, without limitation, making a false representation.
6. Advertise or permit to be advertised in any manner any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for loans.
7. Use or attempt to use any agent, affiliate or subsidiary to avoid the requirements or prohibitions of this chapter.
(Added to NRS by 2005, 1691)
NRS 604A.442 Violation of federal law constitutes violation of chapter. Notwithstanding any other provision of law, a violation of any provision of section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007, Public Law 109-364, or any regulation adopted pursuant thereto shall be deemed to be a violation of this chapter.
(Added to NRS by 2007, 931, 2847)
NRS 604A.445 Title loans: Restrictions on duration of loan and periods of extension. Notwithstanding any other provision of this chapter to the contrary:
1. The original term of a title loan must not exceed 30 days.
2. The title loan may be extended for not more than six additional periods of extension, with each such period not to exceed 30 days, if:
(a) Any interest or charges accrued during the original term of the title loan or any period of extension of the title loan are not capitalized or added to the principal amount of the title loan during any subsequent period of extension;
(b) The annual percentage rate charged on the title loan during any period of extension is not more than the annual percentage rate charged on the title loan during the original term; and
(c) No additional origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fees, are charged in connection with any extension of the title loan.
3. The original term of a title loan may be up to 210 days if:
(Added to NRS by 2005, 1692; A 2007, 937)
NRS 604A.450 Title loans: Prohibited acts by licensee regarding amount of loan and customer’s ability to repay loan. A licensee who makes title loans shall not:
1. Make a title loan that exceeds the fair market value of the vehicle securing the title loan.
2. Make a title loan without regard to the ability of the customer seeking the title loan to repay the title loan, including the customer’s current and expected income, obligations and employment.
3. Make a title loan without requiring the customer to sign an affidavit which states that:
(a) The customer has provided the licensee with true and correct information concerning the customer’s income, obligations, employment and ownership of the vehicle; and
(b) The customer has the ability to repay the title loan.
(Added to NRS by 2005, 1692)
NRS 604A.455 Title loans: Applicability of Uniform Commercial Code; repossession of vehicle; civil action.
1. Except where in conflict with the provisions of this section, the provisions of chapter 104 of NRS apply to any title loan between a licensee and a customer.
2. Except as otherwise provided in this section, if a customer defaults on a title loan, or on any extension or repayment plan relating to the title loan, the sole remedy of the licensee who made the title loan is to seek repossession and sale of the vehicle which the customer used to secure the title loan. The licensee may not pursue the customer personally for:
(a) Payment of the loan, unless the licensee proves the customer prevented the repossession and sale of the vehicle by any means, including, without limitation, hiding the vehicle; or
(b) Any deficiency after repossession and sale of the vehicle which the customer used to secure the title loan, unless the licensee proves the customer damaged or otherwise committed or permitted waste on the vehicle. For the purposes of this paragraph, it shall not be deemed waste for the customer to continue to use the vehicle in the same manner it was used before the customer entered into the title loan.
3. If a vehicle is repossessed pursuant to this section:
(a) By the licensee or his or her employees, the licensee shall make reasonably available to the customer any personal property in or upon the vehicle; or
(b) By a third party acting on behalf of the licensee, the licensee shall instruct the third party to make reasonably available to the customer any personal property in or upon the vehicle.
4. If a customer uses fraud to secure a title loan or if the customer wrongfully transfers any interest in the vehicle to a third party before the title loan is repaid, the licensee may bring a civil action against the customer for any or all of the following relief:
(a) The amount of the loan obligation, including, without limitation, the aggregate amount of the interest, charges and fees negotiated and agreed to by the licensee and customer as permitted under this chapter, less any prior payments made by the customer;
(b) Reasonable attorney’s fees and costs; and
(c) Any other legal or equitable relief that the court deems appropriate.
5. As used in this section, “fraud” means an intentional misrepresentation, deception or concealment of a material fact known to the customer with the intent to deprive the licensee of his or her rights or property or to otherwise injure the licensee. The term includes, without limitation, giving to a licensee as security for a title loan the title to a vehicle which does not belong to the customer.
NRS 604A.460 Rescission of loan by customer.
1. A customer may rescind a loan on or before the close of business on the next day of business at the location where the loan was initiated. To rescind the loan, the customer must deliver to the licensee:
(a) A sum of money equal to the face value of the loan, less any fee charged to the customer to initiate the loan; or
(b) The original check, if any, which the licensee gave to the customer pursuant to the loan. Upon receipt of the original check, the licensee shall refund any fee charged to the customer to initiate the loan.
2. If a customer rescinds a loan pursuant to this section, the licensee:
(a) Shall not charge the customer any fee for rescinding the loan; and
(b) Upon receipt of the sum of money or check pursuant to subsection 1, shall give to the customer a receipt showing the account paid in full and:
(1) If the customer gave to the licensee a check or a written authorization for an electronic transfer of money to initiate a deferred deposit loan, the check or written authorization stamped “void”;
(2) If the customer gave to the licensee a promissory note to initiate a high-interest loan, a copy of the promissory note stamped “void” or the receipt stamped “paid in full”; or
(3) If the customer gave to the licensee a title to a vehicle to initiate the title loan, the title.
(Added to NRS by 2005, 1693; A 2007, 937)
NRS 604A.465 Payment of loan in full.
1. A customer may pay a loan, or any extension thereof, in full at any time, without an additional charge or fee, before the date the customer’s final payment on the loan, or any extension thereof, is due.
2. If a customer pays the loan in full, including all interest, charges and fees negotiated and agreed to by the licensee and customer as permitted under this chapter, the licensee shall:
(a) Give to the customer:
(1) If the customer gave to the licensee a check or a written authorization for an electronic transfer of money to initiate a deferred deposit loan, the check or the written authorization stamped “void”;
(2) If the customer gave to the licensee a promissory note to initiate a high-interest loan, the promissory note stamped “void” or a receipt stamped “paid in full”; or
(3) If the customer gave to the licensee a title to a vehicle to initiate a title loan, the title; and
(b) Give to the customer a receipt with the following information:
(2) The identification number assigned to the loan agreement or other information that identifies the loan;
(3) The date of the payment;
(4) The amount paid;
(5) An itemization of interest, charges and fees;
(6) A statement that the loan is paid in full; and
(7) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.
(Added to NRS by 2005, 1693; A 2007, 938)
NRS 604A.470 Partial payment on loan.
1. A customer may make a partial payment on a loan, or any extension thereof, at any time without an additional charge or fee.
2. If a customer makes such a partial payment, the licensee shall give to the customer a receipt with the following information:
(a) The name and address of the licensee;
(b) The identification number assigned to the loan agreement or other information that identifies the loan;
(c) The date of the payment;
(d) The amount paid;
(e) An itemization of interest, charges and fees;
(f) The balance due on the loan; and
(g) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.
(Added to NRS by 2005, 1694)
NRS 604A.475 Repayment plan.
1. Before a licensee attempts to collect the outstanding balance on a loan in default by commencing any civil action or process of alternative dispute resolution or repossessing a vehicle, the licensee shall offer the customer an opportunity to enter into a repayment plan. The licensee:
(a) Is required to make the offer available to the customer for a period of at least 30 days after the date of default; and
(b) Is not required to make such an offer more than once for each loan.
2. If the licensee intends to commence any civil action or process of alternative dispute resolution or repossess a vehicle in an effort to collect a defaulted loan, the licensee shall deliver to the customer, not later than 15 days after the date of default, or not later than 5 days after a check is not paid upon presentment or an electronic transfer of money fails, whichever is later, written notice of the opportunity to enter into a repayment plan. The written notice must:
(a) Be in English, if the initial transaction was conducted in English, or in Spanish, if the initial transaction was conducted in Spanish;
(b) State the date by which the customer must act to enter into a repayment plan;
(c) Explain the procedures the customer must follow to enter into a repayment plan;
(d) If the licensee requires the customer to make an initial payment to enter into a repayment plan, explain the requirement and state the amount of the initial payment and the date the initial payment must be made;
(e) State that the customer has the opportunity to enter into a repayment plan with a term of at least 90 days after the date of default; and
(f) Include the following amounts:
(1) The total of payments or the remaining balance on the original loan;
(2) Any payments made on the loan;
(3) Any charges added to the loan amount allowed pursuant to the provisions of this chapter; and
(4) The total amount due if the customer enters into a repayment plan.
3. Under the terms of any repayment plan pursuant to this section:
(a) The customer must enter into the repayment plan not later than 30 days after the date of default, unless the licensee allows a longer period;
(b) The licensee must allow the period for repayment to extend at least 90 days after the date of default, unless the customer agrees to a shorter term;
(c) The licensee may require the customer to make an initial payment of not more than 20 percent of the total amount due under the terms of the repayment plan;
(d) For a deferred deposit loan:
(1) The licensee may require a customer to provide, as security, one or more checks or written authorizations for an electronic transfer of money which equal the total amount due under the terms of the repayment plan;
(2) The licensee shall, if the customer makes a payment in the amount of a check or written authorization taken as security for that payment, return to the customer the check or written authorization stamped “void” or destroy the check or written authorization; and
(3) The licensee shall not charge any fee to the customer pursuant to NRS 604A.490 for a check which is provided as security during the repayment plan and which is not paid upon presentment if, in connection with that loan, the licensee has previously charged at least one such fee.
4. If the licensee and customer enter into a repayment plan pursuant to this section, the licensee shall honor the terms of the repayment plan, and the licensee shall not:
(a) Except as otherwise provided by this chapter, charge any other amount to a customer, including, without limitation, any amount or charge payable directly or indirectly by the customer and imposed directly or indirectly by the licensee as an incident to or as a condition of entering into a repayment plan. Such an amount includes, without limitation:
(1) Any interest, regardless of the name given to the interest, other than the interest charged pursuant to the original loan agreement at a rate which does not exceed the annual percentage rate charged during the term of the original loan agreement; or
(2) Any origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fee;
(b) Except as otherwise provided in this section, accept any additional security or collateral from the customer to enter into the repayment plan;
(c) Sell to the customer any insurance or require the customer to purchase insurance or any other goods or services to enter into the repayment plan;
(d) Make any other loan to the customer, unless the customer is seeking multiple loans that do not exceed the limit set forth in NRS 604A.425;
(e) During the term of the repayment plan, attempt to collect the outstanding balance by commencing any civil action or process of alternative dispute resolution or by repossessing a vehicle, unless the customer defaults on the repayment plan; or
(f) Attempt to collect an amount that is greater than the amount owed under the terms of the repayment plan.
5. If the licensee and customer enter into a repayment plan pursuant to this section, the licensee shall:
(a) Prepare a written agreement establishing the repayment plan; and
(b) Give the customer a copy of the written agreement. The written agreement must:
(1) Be signed by the licensee and customer; and
(2) Contain all of the terms of the repayment plan, including, without limitation, the total amount due under the terms of the repayment plan.
6. Each time a customer makes a payment pursuant to a repayment plan, the licensee shall give to the customer a receipt with the following information:
(e) The balance due on the loan or, when the customer makes the final payment, a statement that the loan is paid in full; and
(f) If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.
7. If the customer defaults on the repayment plan, the licensee may, to collect the outstanding balance, commence any civil action or process of alternative dispute resolution or repossess a vehicle as otherwise authorized pursuant to this chapter.
(Added to NRS by 2005, 1694; A 2007, 938)
NRS 604A.480 Limitations on using proceeds of new loan to pay balance of outstanding loan; exceptions.
1. Except as otherwise provided in subsection 2, if a customer agrees in writing to establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding loan by using the proceeds of a new deferred deposit loan or high-interest loan to pay the balance of the outstanding loan, the licensee shall not establish or extend the period beyond 60 days after the expiration of the initial loan period. The licensee shall not add any unpaid interest or other charges accrued during the original term of the outstanding loan or any extension of the outstanding loan to the principal amount of the new deferred deposit loan or high-interest loan.
2. This section does not apply to a new deferred deposit loan or high-interest loan if the licensee:
(a) Makes the new deferred deposit loan or high-interest loan to a customer pursuant to a loan agreement which, under its original terms:
(1) Charges an annual percentage rate of less than 200 percent;
(2) Requires the customer to make a payment on the loan at least once every 30 days;
(3) Requires the loan to be paid in full in not less than 150 days; and
(4) Provides that interest does not accrue on the loan at the annual percentage rate set forth in the loan agreement after the date of maturity of the loan;
(b) Performs a credit check of the customer with a major consumer reporting agency before making the loan;
(c) Reports information relating to the loan experience of the customer to a major consumer reporting agency;
(d) Gives the customer the right to rescind the new deferred deposit loan or high-interest loan within 5 days after the loan is made without charging the customer any fee for rescinding the loan;
(e) Participates in good faith with a counseling agency that is:
(1) Accredited by the Council on Accreditation of Services for Families and Children, Inc., or its successor organization; and
(2) A member of the National Foundation for Credit Counseling, or its successor organization; and
(f) Does not commence any civil action or process of alternative dispute resolution on a defaulted loan or any extension or repayment plan thereof.
(Added to NRS by 2005, 1696; A 2007, 940)
NRS 604A.485 Limitations on amounts licensee may collect after default.
1. If a customer defaults on a loan or on any extension or repayment plan relating to the loan, whichever is later, the licensee may collect only the following amounts from the customer, less all payments made before and after default:
(a) The unpaid principal amount of the loan.
(b) The unpaid interest, if any, accrued before the default at the annual percentage rate set forth in the disclosure statement required by the Truth in Lending Act and Regulation Z that is provided to the customer. If there is an extension, in writing and signed by the customer, relating to the loan, the licensee may charge and collect interest pursuant to this paragraph for a period not to exceed 60 days after the expiration of the initial loan period, unless otherwise allowed by NRS 604A.480.
(c) The interest accrued after the expiration of the initial loan period or after any extension or repayment plan that is allowed pursuant to this chapter, whichever is later, at an annual percentage rate not to exceed the prime rate at the largest bank in Nevada, as ascertained by the Commissioner, on January 1 or July 1, as the case may be, immediately preceding the expiration of the initial loan period, plus 10 percent. The licensee may charge and collect interest pursuant to this paragraph for a period not to exceed 90 days. After that period, the licensee shall not charge or collect any interest on the loan.
(d) Any fees allowed pursuant to NRS 604A.490 for a check that is not paid upon presentment or an electronic transfer of money that fails because the account of the customer contains insufficient funds or has been closed.
Ê The sum of all amounts collected pursuant to paragraphs (b), (c) and (d) must not exceed the principal amount of the loan.
2. Except for the interest and fees permitted pursuant to subsection 1 and any other charges expressly permitted pursuant to NRS 604A.430, 604A.445, 604A.475 and 604A.487, the licensee shall not charge any other amount to a customer, including, without limitation, any amount or charge payable directly or indirectly by the customer and imposed directly or indirectly by the licensee as an incident to or as a condition of the extension of the period for the payment of the loan or the extension of credit. Such prohibited amounts include, without limitation:
(a) Any interest, other than the interest charged pursuant to subsection 1, regardless of the name given to the interest; or
(b) Any origination fees, set-up fees, collection fees, transaction fees, negotiation fees, handling fees, processing fees, late fees, default fees or any other fees, regardless of the name given to the fee.
(Added to NRS by 2005, 1697; A 2007, 941; 2013, 1517)
NRS 604A.487 Limitations on fees licensees may charge after default on installment payments. In addition to the amounts authorized to be collected pursuant to NRS 604A.485, a licensee who makes a high-interest loan in accordance with the provisions of subsection 2 of NRS 604A.480 may charge a fee of not more than $15, payable on a one-time basis, for any installment payment that remains unpaid 10 days or more after the date of default.
(Added to NRS by 2013, 1516)
NRS 604A.490 Limitations on fees licensee may collect for check not paid upon presentment or failure of electronic transfer of money; standards for civil liability and criminal prosecution.
1. A licensee may collect a fee of not more than $25 if a check is not paid upon presentment or an electronic transfer of money fails because the account of the customer contains insufficient funds or has been closed.
2. If the account of the customer contains insufficient funds, the licensee may collect only two fees of $25 each, regardless of the number of times the check is presented for payment or the electronic transfer of money is attempted.
3. If the account of the customer has been closed, the licensee may collect only one fee of $25, regardless of the number of times the check is presented or the electronic transfer of money is attempted for payment.
4. A customer is not liable for damages pursuant to NRS 41.620 or to criminal prosecution for a violation of chapter 205 of NRS unless the customer acted with criminal intent.
(Added to NRS by 2005, 1698; A 2007, 942)
NRS 604A.495 Receipt required for each payment by customer; contents. In addition to any other provision in this chapter, each time a customer makes a payment to a licensee, the licensee shall give to the customer a receipt with the following information:
1. The name and address of the licensee;
2. The identification number assigned to the loan agreement or other information that identifies the loan;
3. The date of the payment;
4. The amount paid;
5. The balance due on the loan or, when the customer makes a final payment, a statement that the loan is paid in full; and
6. If more than one loan made by the licensee to the customer was outstanding at the time the payment was made, a statement indicating to which loan the payment was applied.
(Added to NRS by 2005, 1698)
NRS 604A.500 Requirements regarding person acting as agent or assisting in making loan.
1. A person shall not act as an agent for or assist a licensee in the making of a loan unless the licensee complies with all applicable federal and state laws, regulations and guidelines.
2. The provisions of this section do not apply to the agent or assistant to a state or federally chartered bank, thrift company, savings and loan association or industrial loan company if the state or federally chartered bank, thrift company, savings and loan association or industrial loan company:
(a) Initially advances the loan proceeds to the customer; and
(b) Does not sell, assign or transfer a preponderant economic interest in the loan to the agent or assistant or an affiliate or subsidiary of the state or federally chartered bank, thrift company, savings and loan association or industrial loan company, unless selling, assigning or transferring a preponderant economic interest is expressly permitted by the primary regulator of the state or federally chartered bank, thrift company, savings and loan association or industrial loan company.
3. If a licensee acts as an agent for or assists a state or federally chartered bank, thrift company, savings and loan association or industrial loan company in the making of a loan and the licensee can show that the standards set forth in subsection 2 are satisfied, the licensee must comply with all other provisions in this chapter to the extent they are not preempted by other state or federal law.
NRS 604A.510 Short title. The provisions of NRS 604A.510 to 604A.565, inclusive, may be cited as the Payday Lender Best Practices Act.
(Added to NRS by 2015, 1144)
NRS 604A.515 Applicability.
1. In addition to the requirements of any other provision of this chapter, or any applicable law or regulation of this State or federal law or regulation, a licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the provisions of NRS 604A.510 to 604A.565, inclusive.
2. The provisions of NRS 604A.510 to 604A.565, inclusive, do not apply to the operation of a check-cashing service licensed pursuant to this chapter.
NRS 604A.520 Required disclosures.
1. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the disclosure requirements of NRS 604A.405 and the Federal Truth in Lending Act. A loan agreement between such a licensee and a customer must fully disclose the terms of the transaction, including, without limitation, the amount of any fees charged for providing deferred deposit loan services, high-interest loan services or title loan services represented in both a dollar amount and as an annual percentage rate.
2. A licensee described in subsection 1 shall prominently disclose in the loan agreement all fees charged for providing deferred deposit loan services, high-interest loan services or title loan services to a customer before he or she enters into the transaction process.
NRS 604A.525 Prohibited fees. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall not charge a fee for providing deferred deposit loan services, high-interest loan services or title loan services that is prohibited by an applicable law or regulation of this State or federal law or regulation.
NRS 604A.530 Prohibited advertisements. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the provisions of subsection 6 of NRS 604A.440 prohibiting advertisements that are false, misleading or deceptive with regard to the rates, terms or conditions for loans.
NRS 604A.535 Required notices. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall place the following notices on marketing materials and television, print, radio and Internet advertising when space or time reasonably permits:
1. Deferred deposit loans, high-interest loans and title loans should be used for short-term financial needs only and not as a long-term financial solution; and
2. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.
NRS 604A.540 Limitations on extended term of loans. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall not allow a customer to extend, rollover, renew, refinance or consolidate any deferred deposit loan or high-interest loan for a period longer than the period set forth in subsection 3 of NRS 604A.408.
(Added to NRS by 2015, 1145)
NRS 604A.545 Rescission of loan by customer. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall provide each customer with the ability to rescind any deferred deposit loan, high-interest loan or title loan in accordance with the provisions of NRS 604A.460.
NRS 604A.550 Collection of past due accounts; prohibited acts. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter must collect past due accounts in a professional, fair and lawful manner in accordance with the provisions of NRS 604A.440 and applicable provisions of the Federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., as amended. Such a licensee shall not use unlawful threats, intimidation or harassment to collect unpaid accounts.
NRS 604A.555 Reporting violations of chapter. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall report to the Commissioner any person the licensee knows, or reasonably should know, is in violation of the provisions of this chapter within 30 days after the date the licensee knows, or reasonably should know, of the violation.
NRS 604A.560 Certain licensees required to offer repayment plan. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall provide to any customer who is unable to repay a deferred deposit loan, high-interest loan or title loan in accordance with the loan agreement between the licensee and the customer the opportunity to enter into a repayment plan pursuant to NRS 604A.475. Such a licensee shall disclose the availability of such a repayment plan to any customer who is unable to repay a loan.
NRS 604A.565 Licensee offering services through Internet website required to comply with applicable laws. A licensee that offers deferred deposit loan services, high-interest loan services or title loan services through an Internet website must be licensed in each state, as applicable, where any of its customers reside and shall comply with any state or federal law or regulation applicable to such jurisdiction.
NRS 604A.600 Application for license.
1. An application for a license pursuant to the provisions of this chapter must be made in writing, under oath and on a form prescribed by the Commissioner. The application must include:
(a) If the applicant is a natural person, the name and address of the applicant.
(b) If the applicant is a business entity, the name and address of each:
(1) Partner;
(2) Officer;
(3) Director;
(4) Manager or member who acts in a managerial capacity; and
(5) Registered agent,
Ê of the business entity.
(c) Such other information, as the Commissioner determines necessary, concerning the financial responsibility, background, experience and activities of the applicant and its:
(1) Partners;
(2) Officers;
(3) Directors; and
(4) Managers or members who act in a managerial capacity.
(d) The address of each location at which the applicant proposes to do business under the license, including, without limitation, each location where the applicant will operate at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the applicant shall not propose to do business through any automated loan machine prohibited by NRS 604A.400.
(e) If the applicant is or intends to be licensed to provide more than one type of service pursuant to the provisions of this chapter, a statement of that intent and which services the applicant provides or intends to provide.
2. Each application for a license must be accompanied by:
(a) A nonrefundable application fee;
(b) Such additional expenses incurred in the process of investigation as the Commissioner deems necessary; and
(c) A fee of not less than $100 or more than $500, prorated on the basis of the licensing year.
Ê All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
4. 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 2005, 1699)
NRS 604A.605 Additional materials to be submitted with application; grounds for denial of license.
(6) If the applicant is a natural person:
(I) Is at least 21 years of age; and
(II) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
(Added to NRS by 2005, 1702; A 2005, 22nd Special Session, 99)
NRS 604A.610 Surety bond.
1. Except as otherwise provided in NRS 604A.615, each application for a license pursuant to the provisions of this chapter must be accompanied by a surety bond payable to the State of Nevada in the amount of $50,000 plus an additional $5,000 for each branch location at which the applicant proposes to do business under the license. Thereafter, each licensee shall maintain the surety bond so that the amount of the surety bond is $50,000 plus an additional $5,000 for each branch location at which the licensee does business under the license. The surety bond required by this section is for the use and benefit of any customer receiving the services of the licensee at any location at which the licensee does business under the license.
2. Each bond must be in a form satisfactory to the Commissioner, issued by a bonding company authorized to do business in this State and must secure the faithful performance of the obligations of the licensee respecting the provision of the services.
3. A licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against the licensee by any creditor or claimant arising out of business regulated by this chapter give notice thereof to the Commissioner by certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.
4. Whenever the principal sum of any bond is reduced by recoveries or payments thereon, the licensee shall furnish:
(a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to subsection 1; or
(b) An endorsement, duly executed by the surety, reinstating the bond to the required principal sum.
5. The liability of the surety on a bond to a creditor or claimant is not affected by any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.
6. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the agents of the licensee within 30 days after:
(a) The death of the licensee or the dissolution or liquidation of his or her business; or
(b) The termination of the bond,
Ê whichever event occurs first.
7. A licensee or his or her surety shall not cancel or alter a bond except after notice to the Commissioner by certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 6.
(Added to NRS by 2005, 1700; A 2005, 22nd Special Session, 97)
NRS 604A.615 Deposit of securities in lieu of surety bond.
1. In lieu of any surety bond, or any portion of the principal sum thereof as required pursuant to the provisions of this chapter, a licensee may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this State as the licensee may select, with the approval of the Commissioner:
(a) Interest-bearing stocks;
(c) Any obligation of this State or any city, county, town, township, school district or other instrumentality of this State or guaranteed by this State,
Ê in an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of any required surety bond or portion thereof.
2. The securities must be held to secure the same obligation as would any surety bond, but the depositor may receive any interest or dividends and, with the approval of the Commissioner, substitute other suitable securities for those deposited.
(Added to NRS by 2005, 1700; A 2005, 22nd Special Session, 98)
NRS 604A.620 Application for license for office or other place of business located outside State.
1. A person may apply for a license for an office or other place of business located outside this State from which the applicant will conduct business in this State if the applicant or a subsidiary or affiliate of the applicant has a license issued pursuant to this chapter for an office or other place of business located in this State and if the applicant submits with the application for a license a statement signed by the applicant which states that the applicant agrees to:
Ê The person must be allowed to choose between the provisions of paragraph (a) or (b) in complying with the provisions of this subsection.
2. This section applies, without limitation, to any office or other place of business located outside this State from which the applicant will conduct business in this State at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the applicant shall not conduct business in this State through any automated loan machine prohibited by NRS 604A.400.
(Added to NRS by 2005, 1701)
NRS 604A.625 Investigation of applicant; notice; hearing; order.
1. Upon the filing of the application and the payment of the fees required pursuant to NRS 604A.600, the Commissioner shall investigate the facts concerning the application and the requirements provided for in NRS 604A.605 and 604A.635.
2. The Commissioner may hold a hearing on the application at a time not less than 30 days after the date the application was filed or not more than 60 days after that date. The hearing must be held in the Office of the Commissioner or such other place as the Commissioner may designate. Notice in writing of the hearing must be sent to the applicant and to any licensee to which a notice of the application has been given and to such other persons as the Commissioner may see fit, at least 10 days before the date set for the hearing.
3. The Commissioner shall make his or her order granting or denying the application within 10 days after the date of the closing of the hearing, unless the period is extended by written agreement between the applicant and the Commissioner.
NRS 604A.630 Procedure upon denial of license. If the Commissioner finds that any applicant does not possess the requirements specified in this chapter, he or she shall:
1. Enter an order denying the application and notify the applicant of the denial.
2. Within 10 days after the entry of such an order, file his or her findings and a summary of the evidence supporting those findings and deliver a copy thereof to the applicant.
(Added to NRS by 2005, 1702)
NRS 604A.635 Issuance of license; display of license; issuance of additional licenses for branch locations; contents of license; license not transferable or assignable.
1. The Commissioner shall enter an order granting an application if he or she finds that:
(a) The financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently; and
(b) The applicant has satisfied the requirements set forth in NRS 604A.605.
2. If the Commissioner grants an application, the Commissioner shall:
(a) File his or her findings of fact together with the transcript of any hearing held pursuant to the provisions of this chapter; and
(b) Issue to the licensee a license in such form and size as is prescribed by the Commissioner for each location at which the licensee proposes to do business.
3. Each licensee shall prominently display his or her license at the location where he or she does business. The Commissioner may issue additional licenses to the same licensee for each branch location at which the licensee is authorized to operate under the license, including, without limitation, each branch location where the licensee is authorized to operate at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the Commissioner shall not issue any license that would authorize the licensee to operate through any automated loan machine prohibited by NRS 604A.400. Nothing in this subsection requires a license for any place of business devoted to accounting, recordkeeping or administrative purposes only.
4. Each license must:
(a) State the address at which the business is to be conducted; and
(b) State fully:
(2) If the licensee is a copartnership or association, the names of its members; and
(3) If the licensee is a corporation, the date and place of its incorporation.
5. A license is not transferable or assignable.
NRS 604A.640 Expiration, renewal and reinstatement of license; fees.
1. A license issued pursuant to the provisions of this chapter expires annually on the anniversary of the issuance of the license. A licensee must renew the license on or before the date on which the license expires by paying:
(a) A renewal fee of not more than $500; and
(b) An additional fee of not more than $100 for each branch location at which the licensee is authorized to operate under the license.
2. A licensee who fails to renew his or her license within the time required by this section is not licensed pursuant to the provisions of this chapter.
3. The Commissioner may reinstate an expired license upon receipt of the renewal fee and a fee for reinstatement.
4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
(Added to NRS by 2005, 1703; A 2005, 22nd Special Session, 100)
NRS 604A.645 Change of control of licensee: Notice; application to Commissioner.
1. A licensee shall immediately notify the Commissioner of any change of control of the licensee.
2. A person who acquires stock, partnership or member interests resulting in a change of control of the licensee shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements for obtaining a license pursuant to the provisions of this chapter will be satisfied after the change of control. If the Commissioner determines that those requirements will not be satisfied, he or she may deny the application and forbid the applicant from participating in the business of the licensee.
3. As used in this section, “change of control” means:
(a) A transfer of voting stock, partnership or member interests which results in giving a person, directly or indirectly, the power to direct the management and policy of a licensee; or
(b) A transfer of at least 25 percent of the outstanding voting stock, partnership or member interests of the licensee.
(Added to NRS by 2005, 1703)
NRS 604A.650 Licensee must conduct business in accordance with license; approval of business name; prohibition against using misleading or confusing business name or printed forms.
1. A licensee shall not conduct the business of making loans under any name, at any place or by any method, including, without limitation, at a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except as permitted in the license or branch license issued to the licensee.
2. A licensee must obtain the approval of the Commissioner before using or changing a business name.
3. A licensee shall not:
NRS 604A.655 Restrictions on location where licensee may conduct business; requirements to conduct business at same location as mortgage broker, mortgage banker or pawnbroker.
1. Except as otherwise provided in this section, a licensee may not conduct the business of making loans within any office, suite, room or place of business in which any other lending business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the Commissioner.
2. A licensee may conduct the business of making loans in the same office or place of business as:
(a) A mortgage broker if:
(1) The licensee and the mortgage broker:
(I) Maintain separate accounts, books and records;
(II) Are subsidiaries of the same parent corporation; and
(III) Maintain separate licenses; and
(2) The mortgage broker is licensed by this State pursuant to chapter 645B of NRS and does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.
(b) A mortgage banker if:
(1) The licensee and the mortgage banker:
(2) The mortgage banker is licensed by this State pursuant to chapter 645E of NRS and, if the mortgage banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.
3. If a pawnbroker is licensed to operate a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service, the pawnbroker may operate that service at the same office or place of business from which he or she conducts business as a pawnbroker pursuant to chapter 646 of NRS.
(Added to NRS by 2005, 1704; A 2007, 942)
NRS 604A.660 Change of address by licensee: Notice; approval by Commissioner; penalty for failure to provide required notice.
1. A licensee who wishes to change the address of an office or other place of business for which he or she has a license pursuant to the provisions of this chapter must, at least 10 days before changing the address, give written notice of the proposed change to the Commissioner.
3. If a licensee fails to provide notice as required pursuant to subsection 1, the Commissioner may impose a fine in an amount not to exceed $500.
4. This section applies, without limitation, to any office or other place of business at which the licensee intends to operate a kiosk, through the Internet, through any telephone, facsimile machine or other telecommunication device or through any other machine, network, system, device or means, except that the licensee shall not operate any automated loan machine prohibited by NRS 604A.400.
(Added to NRS by 2005, 1704)
NRS 604A.700 Required books and records.
1. Each licensee shall keep and use in his or her business such books and accounting records as are in accord with generally accepted accounting practices.
2. Each licensee shall maintain a separate written or electronic record or ledger card for the account of each customer and shall set forth separately the amount of cash advance and the total amount of interest and charges, but such a record may set forth precomputed declining balances based on the scheduled payments, without a separation of principal and charges.
3. Each licensee shall preserve all such books and accounting records for at least 2 years after making the final entry therein.
4. Each licensee who operates outside this State an office or other place of business that is licensed pursuant to provisions of this chapter shall:
Ê The licensee must be allowed to choose between the provisions of paragraph (a) or (b) in complying with this subsection.
5. As used in this section, “amount of cash advance” means the amount of cash or its equivalent actually received by a customer or paid out at the customer’s direction or in his or her behalf.
NRS 604A.710 Investigation of businesses; examination of books and records by Commissioner.
1. For the purpose of discovering violations of this chapter or securing information lawfully required under this chapter, the Commissioner or his or her duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business of making loans or participating in such business as principal, agent, broker or otherwise;
(c) Any registered agent who represents a licensee or any other person engaged in the business of making loans; and
(d) Any person who the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his or her authorized representatives shall have and be given free access to the offices and places of business, and the files, safes and vaults of such persons.
3. The investigation of a registered agent pursuant to subsection 1, including, without limitation, any books, accounts, papers and records used therein, must be kept confidential except to the extent necessary to enforce any provision of this chapter.
4. For the purposes of this section, any person who advertises for, solicits or holds himself or herself out as willing to make any deferred deposit loan, high-interest loan or title loan is presumed to be engaged in the business of making loans.
5. This section does not entitle the Commissioner or his or her authorized representatives to investigate the business or examine the books, accounts, papers and records of any attorney who is not a person described in paragraph (a), (b) or (d) of subsection 1, other than examination of those books, accounts, papers and records maintained by such attorney in his or her capacity as a registered agent, and then only to the extent such books, accounts, papers and records are not subject to any privilege in NRS 49.035 to 49.115, inclusive.
(Added to NRS by 2005, 1706; A 2007, 943, 2721; 2009, 1730)
NRS 604A.720 Authority of Commissioner to require attendance of witnesses and production of books and records.
1. The Commissioner may require the attendance of any person and examine him or her under oath regarding:
(a) Any check-cashing service or loan service regulated pursuant to the provisions of this chapter; or
2. The Commissioner may require the production of books, accounts, papers and records for any audit, examination, investigation or hearing.
(Added to NRS by 2005, 1706)
NRS 604A.730 Annual examinations by Commissioner; exceptions.
1. At least once each year, the Commissioner or his or her authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, accounts, papers and records of the licensee so far as they pertain to the business for which he or she is licensed pursuant to the provisions of this chapter.
2. If, after auditing one or more branch locations of the licensee, the Commissioner or his or her authorized representatives conclude that the loans, disclosures, loan practices, computer processes, filing systems and records are identical at each branch location, the Commissioner may make an examination of only those branch locations he or she deems necessary.
NRS 604A.740 Fees for regulatory activities; penalties for failure to pay fees.
1. The Commissioner shall charge and collect from each licensee a fee of not more than $80 per hour for any supervision, audit, examination, investigation or hearing conducted pursuant to this chapter or any regulations adopted pursuant thereto.
2. The Commissioner shall bill each licensee upon the completion of the activity for the fee required pursuant to subsection 1. The licensee shall pay the fee within 30 days after the date the bill is received. Except as otherwise provided in this subsection, any payment received after the date due must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause.
3. The failure of a licensee to pay the fee required pursuant to subsection 1 as provided in this section constitutes grounds for revocation of the license of the licensee.
4. The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.
(Added to NRS by 2005, 1706; A 2005, 22nd Special Session, 100)
NRS 604A.750 Annual report by licensee; composite reports.
1. Annually, on or before April 15, each licensee shall file with the Commissioner a report of operations of the licensed business for the preceding calendar year.
2. The licensee shall make the report under oath and on a form prescribed by the Commissioner.
3. If any person or affiliated group holds more than one license in this State, it may file a composite annual report.
(Added to NRS by 2005, 1708)
NRS 604A.760 Fees for failure to submit reports.
1. If a licensee 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.
(Added to NRS by 2005, 22nd Special Session, 101)
NRS 604A.800 Temporary suspension of license: Conditions; notice; hearing; terms of suspension. If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of the provisions of this chapter requires immediate suspension of a license pending investigation, the Commissioner may, upon 5 days’ written notice and a hearing, enter an order suspending a license for a period not exceeding 20 days, pending a hearing upon the revocation.
(Added to NRS by 2005, 1707)
NRS 604A.810 Order to desist and refrain; action to enjoin violation; appointment of receiver.
1. Whenever the Commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, the Commissioner may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring the person to desist or to refrain from such violation.
2. The Attorney General or the Commissioner may bring an action to enjoin a person from engaging in or continuing a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding a preliminary or final injunction as may be deemed proper.
3. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business, whether such books, papers, documents and records are in the possession of the defendant, a registered agent acting on behalf of the defendant or any other person. A receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as may from time to time be conferred upon the receiver by the court.
(Added to NRS by 2005, 1707; A 2007, 2722)
NRS 604A.820 Procedure for taking disciplinary action; authorized disciplinary action; grounds.
1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, the Commissioner shall give 20 days’ written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing.
(a) Enter a written order either dismissing the charges, revoking the license or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. The Commissioner shall send a copy of the order to the licensee by registered or certified mail.
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including investigative costs and attorney’s fees of the Commissioner.
(b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any lawful regulation adopted pursuant thereto;
(c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS;
(d) Any fact or condition exists which would have justified the Commissioner in denying the licensee’s original application for a license pursuant to the provisions of this chapter; or
(2) Has failed to remain open for the conduct of the business for a period of 180 days without good cause therefor.
4. Any revocation or suspension applies only to the license granted to a person for the particular office for which grounds for revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
(Added to NRS by 2005, 1707; A 2005, 22nd Special Session, 100; 2015, 2933)
NRS 604A.830 Additional grounds for disciplinary action. In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant to this chapter.
NRS 604A.840 Surrender of license by licensee; effect of surrender. A licensee may surrender any license issued pursuant to the provisions of this chapter by delivering it to the Commissioner with written notice of its surrender, but a surrender does not affect the licensee’s civil or criminal liability for acts committed prior thereto.
NRS 604A.850 Preexisting contracts unaffected by revocation, suspension, expiration or surrender of license. A revocation, suspension, expiration or surrender of any license does not impair or affect the obligation of any preexisting lawful loan agreement between the licensee and any customer. Such a loan agreement and all lawful charges thereon may be collected by the licensee, its successors or assigns.
NRS 604A.900 Remedies for certain willful violations.
1. Except as otherwise provided in this section, if a licensee willfully:
(a) Enters into a loan agreement for an amount of interest or any other charge or fee that violates the provisions of this chapter or any regulation adopted pursuant thereto;
(b) Demands, collects or receives an amount of interest or any other charge or fee that violates the provisions of this chapter or any regulation adopted pursuant thereto; or
(c) Commits any other act or omission that violates the provisions of this chapter or any regulation adopted pursuant thereto,
Ê the loan is void and the licensee is not entitled to collect, receive or retain any principal, interest or other charges or fees with respect to the loan.
2. The provisions of this section do not apply if:
(a) A licensee shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error of computation, notwithstanding the maintenance of procedures reasonably adapted to avoid that error; and
(b) Within 60 days after discovering the error, the licensee notifies the customer of the error and makes whatever adjustments in the account are necessary to correct the error.
NRS 604A.910 Administrative fines for unlicensed activity. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $50,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
(Added to NRS by 2005, 1709; A 2005, 22nd Special Session, 101)
NRS 604A.920 Other remedies for unlicensed activity. If a person operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service without obtaining a license pursuant to this chapter:
1. Any contracts entered into by that person for the cashing of a check or for a deferred deposit loan, high-interest loan or title loan are voidable by the other party to the contract; and
2. In addition to any other remedy or penalty, the other party to the contract may bring a civil action against the person pursuant to NRS 604A.930.
(Added to NRS by 2005, 22nd Special Session, 101; A 2007, 943)
NRS 604A.930 Civil action.
1. Subject to the affirmative defense set forth in subsection 3, in addition to any other remedy or penalty, if a person violates any provision of NRS 604A.400, 604A.410 to 604A.500, inclusive, 604A.610, 604A.615, 604A.650 or 604A.655 or any regulation adopted pursuant thereto, the customer may bring a civil action against the person for:
(a) Actual and consequential damages;
(b) Punitive damages, which are subject to the provisions of NRS 42.005;
(c) Reasonable attorney’s fees and costs; and
2. Subject to the affirmative defense set forth in subsection 3, in addition to any other remedy or penalty, the customer may bring a civil action against a person pursuant to subsection 1 to recover an additional amount, as statutory damages, which is equal to $1,000 for each violation if the person knowingly:
(a) Operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service without a license, in violation of NRS 604A.400;
(b) Fails to include in a loan agreement a disclosure of the right of the customer to rescind the loan, in violation of NRS 604A.410;
(c) Violates any provision of NRS 604A.420;
(d) Accepts collateral or security for a deferred deposit loan, in violation of NRS 604A.435, except that a check or written authorization for an electronic transfer of money shall not be deemed to be collateral or security for a deferred deposit loan;
(e) Uses or threatens to use the criminal process in this State or any other state to collect on a loan made to the customer, in violation of NRS 604A.440;
(f) Includes in any written agreement a promise by the customer to hold the person harmless, a confession of judgment by the customer or an assignment or order for the payment of wages or other compensation due the customer, in violation of NRS 604A.440;
(g) Violates any provision of NRS 604A.485;
(h) Violates any provision of NRS 604A.490; or
(i) Violates any provision of NRS 604A.442.
3. A person may not be held liable in any civil action brought pursuant to this section if the person proves, by a preponderance of evidence, that the violation:
(a) Was not intentional;
(b) Was technical in nature; and
(c) Resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
4. For the purposes of subsection 3, a bona fide error includes, without limitation, clerical errors, calculation errors, computer malfunction and programming errors and printing errors, except that an error of legal judgment with respect to the person’s obligations under this chapter is not a bona fide error.
(Added to NRS by 2005, 1709; A 2007, 943, 2847)
NRS 604A.940 Exercise of jurisdiction over party to civil action; service of summons to confer jurisdiction.