2023 Nevada Revised Statutes › Chapter 670B - Student Loan Servicers; Private Education Lenders › NRS 670B.400 - Prohibited acts.

A student loan servicer shall not:
1. Directly or indirectly employ any scheme, device or artifice to defraud or mislead a student loan borrower.
2. Engage in any unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a student education loan, including, without limitation, misrepresenting the amount, nature or terms of any fee or payment due or claimed to be due on a student education loan, the terms and conditions of the loan agreement or the student loan borrower’s obligations under the loan.
3. Obtain property by fraud or misrepresentation.
4. Misapply student education loan payments to the outstanding balance of a student education loan.
5. Provide inaccurate information to a credit bureau in a manner which may harm a student loan borrower’s creditworthiness.
6. Fail to report both the favorable and unfavorable payment history of the student loan borrower to a nationally recognized consumer credit bureau at least annually if the student loan servicer regularly reports information to a credit bureau.
7. Refuse to communicate with an authorized representative of the student loan borrower if the authorized representative:
(a) Provides a written authorization signed by the student loan borrower; and
(b) Complies with any reasonable procedures which may be adopted by the student loan servicer to verify that the representative is in fact authorized to act on behalf of the student loan borrower.
8. Make any false statement or omission of a material fact in connection with any information or reports filed with a governmental agency or in connection with any investigation conducted by the Commissioner or another governmental agency.
9. Fail to respond within 15 business days to communications from the Commissioner, or within a shorter, reasonable period of time as may be requested by the Commissioner.
10. Fail to respond within 15 business days to a consumer complaint submitted to the student loan servicer by the Commissioner or the Office of the Attorney General. If necessary, the student loan servicer may request additional time to respond to the complaint, up to a maximum of 45 business days, provided that the request is accompanied by an explanation of why additional time is reasonable and necessary.
11. Engage in abusive acts or practices when servicing a student education loan in this State. An act or practice is abusive in connection with the servicing of a student education loan if that act or practice:
(a) Materially interferes with the ability of a student loan borrower to understand a term or condition of a student education loan; or
(b) Takes unreasonable advantage of any of the following:
(1) A lack of understanding on the part of a student loan borrower of the material risks, costs or conditions of the student education loan;
(2) The inability of a student loan borrower to protect the interests of the student loan borrower when selecting or using a student education loan or feature, term or condition of a student education loan; or
(3) The reasonable reliance by the student loan borrower on a person engaged in servicing a student education loan to act in the interests of the student loan borrower.
(Added to NRS by 2023, 2865)