CHAPTER 675 – INSTALLMENT LOANS
GENERAL PROVISIONS
NRS 675.010 Short title.
This chapter shall be known and may be cited as the Nevada Installment Loan and Finance Act.
NRS 675.020 Definitions. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
As used in this chapter, unless the context otherwise requires:
1. “Amount of cash advance” means the amount of cash or its equivalent actually received by a borrower or paid out at his or her direction or on his or her behalf.
2. “Amount of loan obligation” means the amount of cash advance plus the aggregate of charges added thereto pursuant to authority of this chapter.
3. “Commissioner” means the Commissioner of Financial Institutions.
4. “Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.
5. “Consumer credit” has the meaning ascribed to it in NRS 604A.036.
6. “Covered service member” has the meaning ascribed to it in NRS 604A.038.
7. “Dependent” has the meaning ascribed to it in NRS 604A.057.
8. “Internet business lender” means a person who makes business loans exclusively through the Internet.
9. “License” means a license, issued under the authority of this chapter, to make loans in accordance with the provisions of this chapter, at a single place of business.
10. “Licensee” means a person to whom one or more licenses have been issued.
NRS 675.020 Definitions. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
As used in this chapter, unless the context otherwise requires:
1. “Amount of cash advance” means the amount of cash or its equivalent actually received by a borrower or paid out at his or her direction or on his or her behalf.
2. “Amount of loan obligation” means the amount of cash advance plus the aggregate of charges added thereto pursuant to authority of this chapter.
3. “Commissioner” means the Commissioner of Financial Institutions.
4. “Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.
5. “Consumer credit” has the meaning ascribed to it in NRS 604A.036.
6. “Covered service member” has the meaning ascribed to it in NRS 604A.038.
7. “Dependent” has the meaning ascribed to it in NRS 604A.057.
8. “Internet business lender” means a person who makes business loans exclusively through the Internet.
9. “License” means a license, issued under the authority of this chapter, to make loans in accordance with the provisions of this chapter, at a single place of business.
10. “Licensee” means a person to whom one or more licenses have been issued.
11. “Nationwide Multistate Licensing System and Registry” or “Registry” has the meaning ascribed to it in NRS 604A.083.
NRS 675.030 Legislative declaration.
The Legislature finds as facts and determines that:
1. There exists in this state a widespread demand for loans repayable in installments, which loans may or may not be made on substantial security. This demand has been steadily increased by many social and economic factors.
2. The expenses of making and collecting installment loans are necessarily high in relation to the amounts lent.
3. It is the purpose of this chapter to:
(a) Bring under public supervision those engaged in the business of making loans;
(b) Attract adequate commercial capital to the business, so that the demand for such loans may be satisfied; and
(c) Ensure the availability in this state of adequate, efficient and competitive financial services.
NRS 675.035 Applicability of chapter.
The provisions of this chapter apply to any person who:
1. Makes installment loans that are not subject to regulation pursuant to chapter 604A of NRS;
2. Is an affiliate, subsidiary or holding company of a bank, national banking association, savings bank, trust company, savings and loan association, credit union, mortgage company, mortgage servicer as that term is defined in NRS 645F.063, thrift company or insurance company; and
3. Seeks to evade its application by any device, subterfuge or pretense, including, without limitation:
(a) Calling a loan by any other name;
(b) Using any agents, affiliates or subsidiaries in an attempt to avoid the application of the provisions of this chapter; or
(c) 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 675.040, 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 material economic interest in the revenues generated by the loan.
NRS 675.040 Applicability of chapter; exemptions.
This chapter does not apply to:
1. Except as otherwise provided in NRS 675.035, a person doing business under 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 companies, thrift companies, pawnbrokers or insurance companies.
2. A real estate investment trust, as defined in 26 U.S.C. § 856.
3. 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.
4. 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.
5. 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.
6. Except as otherwise provided in this subsection, any firm or corporation:
(a) Whose principal purpose or activity is lending money on real property which is secured by a mortgage;
(b) Approved by the Federal National Mortgage Association as a seller or servicer; and
(c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.
7. A person who provides money for investment in loans secured by a lien on real property, on his or her own account.
8. A seller of real property who offers credit secured by a mortgage of the property sold.
9. A person holding a nonrestricted state gaming license issued pursuant to the provisions of chapter 463 of NRS.
10. A person licensed to do business pursuant to chapter 604A of NRS with regard to those services regulated pursuant to chapter 604A of NRS.
11. A person who exclusively extends credit to any person who is not a resident of this State for any business, commercial or agricultural purpose that is located outside of this State.
12. Except as otherwise required by the Director of the Department of Business and Industry pursuant to NRS 657A.430 or 657A.620, a participant in the Regulatory Experimentation Program for Product Innovation established and administered pursuant to chapter 657A of NRS.
NRS 675.045 Certain relationships between employees of Division of Financial Institutions and licensees prohibited; termination of prohibited relationship.
1. Except as provided in subsection 3, an officer or employee of the Division of Financial Institutions 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 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 upon a secured installment debt or an unsecured debt.
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.
NRS 675.050 Effect of amendment or repeal of chapter on preexisting lawful contracts.
This chapter or any part thereof may be modified, amended or repealed 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 contract between any licensee and any borrower.
NRS 675.055 Exemption from provisions governing making of loans: Application to Commissioner; grounds; powers and duties of Commissioner; regulations; fees set by regulation.
1. A person may apply to the Commissioner for an exemption from the provisions of this chapter governing the making of a loan of money.
2. The Commissioner may grant the exemption if he or she finds that:
(a) The making of the loan would not be detrimental to the financial condition of the lender, borrower or person who is providing the money for the loan;
(b) The lender, borrower or person who is providing the money for the loan has established a record of sound performance, efficient management, financial responsibility and integrity;
(c) The making of the loan is likely to increase the availability of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to the public interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for which the exemption was granted has been made;
(b) Shall issue a written statement setting forth the reasons for his or her decision to grant, deny or revoke an exemption; and
(c) Shall adopt regulations which provide the application forms to be used to apply for an exemption and the fees to be paid along with the application.
LICENSING
NRS 675.060 Unlicensed dealing in loans prohibited; license required for each office or other place of business.
1. No person may engage in the business of lending in this State without first having obtained a license from the Commissioner pursuant to this chapter for each office or other place of business at which the person engages in such business, except that if a person intends to engage in the business of lending in this State as a deferred deposit loan service, high-interest loan service or title loan service, as those terms are defined in chapter 604A of NRS, the person must obtain a license from the Commissioner pursuant to chapter 604A of NRS before the person may engage in any such business.
2. For the purpose of this section, a person engages in the business of lending in this State if he or she:
(a) Solicits loans in this State or makes loans to persons in this State, unless these are isolated, incidental or occasional transactions; or
(b) Is located in this State and solicits loans outside of this State or makes loans to persons located outside of this State, unless these are isolated, incidental or occasional transactions.
NRS 675.070 Application of NRS 675.060 to persons who seek to evade.
The provisions of NRS 675.060 shall apply to any person who seeks to evade its application by any device, subterfuge or pretense whatever, including, but not thereby limiting the generality of the foregoing:
1. The loan, forbearance, use or sale of credit (as guarantor, surety, endorser, comaker or otherwise), money, goods, or things in action.
2. The use of collateral or related sales or purchases of goods or services, or agreements to sell or purchase, whether real or pretended.
3. Receiving or charging compensation for goods or services, whether or not sold, delivered or provided.
4. The real or pretended negotiation, arrangement or procurement of a loan through any use or activity of a third person, whether real or fictitious.
NRS 675.090 Application for license: Form; contents; requirements when applying for license for office or other place of business located outside State; withdrawal of application.
1. Application for a license must be in writing, under oath, and in the form prescribed by the Commissioner.
2. The application must:
(a) Provide the address of the office or other place of business for which the application is submitted.
(b) Contain such further relevant information as the Commissioner may require, including the names and addresses of the partners, officers, directors or trustees, and of such of the principal owners or members as will provide the basis for the investigations and findings contemplated by NRS 675.110 and 675.120.
3. 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:
(a) The applicant is an Internet business lender; or
(b) 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.
4. A person who wishes to apply for a license pursuant to subsection 3 must submit with the application for a license a statement signed by the applicant which states that the applicant agrees to:
(a) Make available at a location within this State the books, accounts, papers, records and files of the office or place of business located outside this State to the Commissioner or a representative of the Commissioner; or
(b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this State.
The person must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.
5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
NRS 675.095 Application for license: Additional requirements; fingerprints; grounds for refusal to issue license. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. In addition to any other requirements set forth in this chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(2) Has not made a false statement of material fact on the application for the license.
(3) Has not committed any of the acts specified in subsection 2.
(4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(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.
(b) A complete set of his or her fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
NRS 675.095 Application for license: Additional requirements; grounds for refusal to issue license. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. In addition to any other requirements set forth in this chapter, each applicant must submit proof satisfactory to the Commissioner that the applicant:
(a) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.
(b) Has not made a false statement of material fact on the application for the license.
(c) Has not committed any of the acts specified in subsection 2.
(d) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.
(e) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.
(f) If the applicant is a natural person:
(1) Is at least 21 years of age; and
(2) Is a citizen of the United States or lawfully entitled to remain and work in the United States.
2. In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.
(b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.
NRS 675.100 Fees for application and investigation; regulations.
1. At the time of making the application, the applicant shall pay to the Commissioner:
(a) A nonrefundable fee of not more than $1,000 for the application and survey;
(b) Any additional expenses incurred in the process of investigation as the Commissioner deems necessary; and
(c) A fee of not less than $200 or more than $1,000, prorated on the basis of the licensing year as provided by the Commissioner.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.
NRS 675.110 Investigation by Commissioner; notice; hearing; order.
1. Upon the filing of the application and the payment of the fees, the Commissioner shall investigate the facts concerning the application and the requirements provided for in NRS 675.120.
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 nor more than 60 days after that date. The hearing must be held in the Office of the Commissioner or such other place as he or she 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 675.120 Issuance of license subsequent to findings by Commissioner.
If the Commissioner finds:
1. That 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, within the purposes of this chapter; and
2. That the applicant, unless he or she will function solely as a loan broker, has available for the operation of the business at the specified location liquid assets of at least $50,000, he or she shall thereupon enter an order granting the application, and file his or her findings of fact together with the transcript of any hearing held under this chapter, and forthwith issue and deliver a license to the applicant.
NRS 675.130 Required statements on license.
Each license shall:
1. State the address at which the business is to be conducted; and
2. State fully the name of the licensee, and if the licensee is a copartnership or association, the names of its members, and if a corporation, the date and place of its incorporation.
NRS 675.140 Expiration, renewal and reinstatement of license; fees; regulations. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. A license expires on December 31 of each year unless renewed by the licensee through the payment, on or before that date, of an annual fee of not more than $1,000 for each license held by the licensee. The Commissioner may reinstate an expired license upon receipt of the annual fee and a fee of not more than $400 for reinstatement.
2. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
NRS 675.140 Expiration, renewal and reinstatement of license; fees; regulations. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. A license expires on December 31 of each year unless renewed by the licensee. To renew a license, a licensee must submit to the Commissioner on or after November 1 and on or before December 31 of each year:
(a) An application for renewal; and
(b) A fee of not more than $1,000 for each license held by the licensee.
2. If a licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or after November 1 and on or before December 31 of any year, the license is cancelled as of December 31 of that year. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner on or before February 28 of the following year:
(a) An application for renewal;
(b) The fee specified in paragraph (b) of subsection 1; and
(c) A fee of not more than $400 for reinstatement.
3. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.
NRS 675.150 Procedure for denial of license.
1. If the Commissioner finds that any applicant does not possess the requirements specified in this chapter, he or she shall enter an order denying the application and forthwith notify the applicant of the denial.
2. Within 10 days after the entry of such an order, he or she shall file his or her findings and a summary of the evidence supporting them and shall forthwith deliver a copy thereof to the applicant.
NRS 675.160 Disposition of money collected pursuant to chapter.
Except as otherwise provided in NRS 675.100, all fees and charges collected under the provisions of this chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
NATIONWIDE MULTISTATE LICENSING SYSTEM AND REGISTRY
NRS 675.162 Commissioner authorized to take action to participate in Registry; charges for use; regulations; provisions do not replace or affect authority of Commissioner regarding licensing. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. The Commissioner may, in furtherance of his or her duties with respect to the issuance and renewal of licenses, participate in the Nationwide Multistate Licensing System and Registry. The Commissioner may take any action with respect to participation in the Registry that the Commissioner deems necessary to carry out his or her duties, including, without limitation:
(a) Facilitating and participating in the establishment and implementation of the Registry;
(b) Establishing relationships or contracts with the Registry or other entities designated by the Registry;
(c) Authorizing the Registry to collect and maintain records of applicants for and holders of licenses;
(d) Authorizing the Registry to, on behalf of the Commissioner, collect and process any fees associated with licensure, examinations, fines, assessments and any other similar fees;
(e) Requiring an applicant for a license or a licensee to use the Registry to:
(1) Apply for the issuance or renewal of a license;
(2) Amend or surrender a license;
(3) Submit any reports or the results of any examination that the Commissioner may require;
(4) Pay any applicable fees; and
(5) Engage in any other activity that the Commissioner may require; and
(f) Authorizing the Registry to, on behalf of the Commissioner, collect fingerprints in order to receive or conduct a background check on the criminal history of an applicant for a license or a licensee.
2. An applicant for a license or a licensee shall, in addition to any other fees associated with the license, pay all applicable charges to use the Registry, including, without limitation, any processing charges established by the administrator of the Registry.
3. The Commissioner may adopt any regulations the Commissioner determines to be necessary or appropriate to carry out the provisions of this section. Such regulations may, without limitation, establish additional procedures and requirements for participation in the Registry.
4. The provisions of this section shall not be construed to replace or affect the authority of the Commissioner to grant, deny, suspend, terminate, revoke or refuse to renew a license.
NRS 675.164 Submission and processing of fingerprints. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. The Commissioner may require an applicant for a license or a licensee to submit a complete set of fingerprints when the Commissioner determines necessary.
2. The Commissioner may use the services of the Registry to process and to submit the fingerprints to the Federal Bureau of Investigation, to the Central Repository for Nevada Records of Criminal History, to any federal or state law enforcement agency or to any other entity authorized to receive such information for the purpose of conducting a background check of the criminal history of an applicant for a license or a licensee.
NRS 675.166 Commissioner required to report certain information or material to Registry; confidentiality of information or material provided; Commissioner authorized to enter into certain agreements and arrangements. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. Subject to any limitations or restrictions contained in federal or state law governing the privacy or confidentiality of records, the Commissioner shall report regularly any violations of applicable laws committed by applicants for a license or licensees, enforcement actions and other relevant information to the Registry.
2. The requirements under any federal or state law, including, without limitation, rules of a federal or state court, regarding the privacy and confidentiality of any information or material provided to the Registry and any privilege arising under federal or state law with respect to such information or material, continue to apply to such information or material after it has been disclosed to the Registry. Such information and material may be shared with federal and state regulatory officials with oversight authority over licensees without the loss of privilege or the loss of confidentiality protections provided by federal or state law.
3. The Commissioner may enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the State Regulatory Registry, LLC, or other associations representing governmental agencies.
NRS 675.168 Additional materials required to be submitted to Registry. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. In addition to any other requirements set forth by specific statute, each applicant for the issuance of a license and each owner, officer, director and responsible person of the applicant, each person in control of the applicant and any other person the Commissioner may require in accordance with guidelines of the Registry or other multistate agreements shall submit to the Registry:
(a) A complete set of fingerprints for submission to the Federal Bureau of Investigation and any other governmental agency or entity authorized to receive such information for a state, national and international background check on the criminal history of the person;
(b) Information concerning the personal history, financial history and experience of the person in a form prescribed by the Registry, including, without limitation, an authorization of the person for the Registry and the Commissioner to obtain:
(1) An independent credit report and credit score from a consumer reporting agency described in section 603(f) of the Fair Credit Reporting Act, 15 U.S.C. § 1681a(f), for the purpose of evaluating the financial responsibility of the person at the time of the submission of the application; and
(2) Additional independent credit reports and credit scores to confirm that the applicant continues to comply with any applicable requirements concerning financial responsibility;
(c) Information related to any administrative, civil or criminal findings made by any governmental jurisdiction concerning the person; and
(d) Any other information concerning the person that the Registry or Commissioner may require.
2. As used in this section:
(a) “Control” has the meaning ascribed to it in NRS 682A.047.
(b) “Responsible person” means a person who is employed by an applicant and who has principal, active managerial authority over the provision of services in this State.
NRS 675.169 Licensee required to register and maintain unique identifier; Commissioner authorized to issue license through Registry; references to Commissioner deemed references to Registry. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. Each licensee shall register with and maintain a valid unique identifier with the Registry.
2. The Commissioner may issue a license through the Registry.
3. To the extent that the Commissioner has delegated to the Registry any of his or her duties with respect to the issuance and renewal of licenses as authorized by this chapter, any reference to the Commissioner in this chapter shall be deemed to be a reference to the Registry.
4. As used in this section, “unique identifier” means a number or other identifier assigned by the protocols established by the Registry.
GENERAL REGULATIONS
NRS 675.170 Regulations and orders of Commissioner.
1. The Commissioner:
(a) May adopt regulations and make orders for the administration and enforcement of this chapter, in addition hereto and not inconsistent herewith.
(b) Shall adopt regulations to administer, carry out and enforce the provisions of NRS 675.3693, 675.3695 and 675.3697.
2. Every regulation must be promulgated by an order, and any ruling, demand, requirement or similar administrative act may be promulgated by an order.
3. Every order must be in writing, must state its effective date and the date of its promulgation, and must be entered in an indexed permanent book which is a public record.
4. A copy of every order promulgating a regulation and of every other order containing a requirement of general application must be mailed to each licensee at least 20 days before the effective date thereof.
NRS 675.180 Licensee to maintain minimum assets.
Every licensee shall maintain assets of at least $50,000 either used or readily available for use in the conduct of the business of each licensed office.
NRS 675.190 Posting of licenses.
Each license shall be kept conspicuously posted in the licensed place of business.
NRS 675.200 Transferability or assignability of license.
Licenses shall not be transferable or assignable.
NRS 675.210 Places of business maintainable by licensee under license; issuance of more than one license to licensee.
Not more than one place of business may be maintained under the same license. The Commissioner may issue additional licenses to the same licensee for other business locations upon compliance with all the provisions of this chapter governing issuance of a single license. Nothing herein requires a license for any place of business devoted to accounting, recordkeeping or administrative purposes only.
NRS 675.220 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 this chapter must, at least 10 days before changing the address, give written notice of the proposed change to the Commissioner.
2. Upon receipt of the proposed change of address pursuant to subsection 1, the Commissioner shall provide written approval of the change and the date of the approval.
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.
NRS 675.230 Restriction on location of business of making loans.
1. Except as otherwise provided in subsections 2 and 3, a licensee may not conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other 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 pursuant to this chapter in the same office or place of business as a mortgage company if:
(a) The licensee and the mortgage company:
(1) Operate as separate legal entities;
(2) Maintain separate accounts, books and records;
(3) Are subsidiaries of the same parent corporation; and
(4) Maintain separate licenses; and
(b) The mortgage company 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.
3. A licensee who is an Internet business lender may conduct the business of making loans pursuant to this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in.
NRS 675.240 Name under which business transactable by licensee; loans by mail.
No licensee shall conduct the business of making loans provided for by this chapter under any name or at any place other than that stated in the license. Nothing herein shall prevent the making of loans by mail nor prohibit accommodations to individual borrowers when necessitated by hours of employment, sickness or other emergency situations.
NRS 675.245 Use or change of business name; prohibitions.
1. A licensee must obtain the approval of the Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
NRS 675.250 Books and accounting records: Practices; preservation; requirements regarding office or other place of business located outside State.
1. Each licensee shall keep and use in his or her business such books and accounting records as are in accord with sound and accepted accounting practices.
2. Each licensee shall maintain a separate record or ledger card for the account of each borrower 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 this chapter shall:
(a) Make available at a location within this state the books, accounts, papers, records and files of the office or place of business located outside this state to the Commissioner or a representative of the Commissioner; or
(b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of business located outside this state.
The licensee must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.
NRS 675.260 Annual report by licensee; composite reports. [Effective until the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
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 report must be made under oath and must be in the form and contain information prescribed by the Commissioner.
3. If any person or affiliated group holds more than one license in the state, it may file a composite annual report.
NRS 675.260 Required reports. [Effective on the date on which the Commissioner of Financial Institutions notifies the Governor and the Director of the Legislative Counsel Bureau that the Nationwide Multistate Licensing System and Registry has sufficient capabilities to allow the Commissioner to carry out the provisions of chapter 347, Statutes of Nevada 2021, at page 2030.]
1. Annually, on or before April 15, each licensee shall file with the Commissioner and the Nationwide Multistate Licensing System and Registry a report of operations of the licensed business for the preceding calendar year. The report must be made under oath and must be in the form and contain information prescribed by the Commissioner. If any person or affiliated group holds more than one license in the state, it may file a composite annual report.
2. The Commissioner may require a licensee to file more frequent reports as the Commissioner determines necessary.
NRS 675.280 False, misleading or deceptive advertising prohibited.
A licensee shall not advertise or permit to be advertised in any manner whatsoever any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for loans.
NRS 675.285 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.
NRS 675.296 Practices regarding customers who are members of military. Notwithstanding any other provision of law:
1. If a borrower is a member of the military, a licensee shall:
(a) Honor the terms of any repayment plan between the licensee and borrower, 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 borrower is a member of the military, a licensee shall not:
(a) Garnish or threaten to garnish any wages or salary of the borrower or his or her spouse; or
(b) Contact or threaten to contact the military chain of command of a borrower in an effort to collect the loan.
3. If a borrower 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 borrower or his or her spouse.
4. As used in this section, “military” means the Armed Forces of the United States, a reserve component thereof or the National Guard.
LOANS
NRS 675.300 Insurance as security for loans: Conditions; limitations.
1. A licensee may request that a borrower insure tangible property when offered as security for a loan under this chapter against any substantial risk of loss, damage or destruction for an amount not to exceed the actual value of the property and for a term and upon conditions which are reasonable and appropriate considering the nature of the property and the maturity and other circumstances of the loan.
2. A licensee may require that a borrower provide title insurance on real property offered as security for a loan under this chapter. The title insurance must be placed through a title insurance company authorized to do business in this state.
3. A licensee may provide, obtain or take as security for a loan:
(a) Insurance on the life and on the health or disability, or both, of one or more parties obligated on the loan;
(b) Involuntary unemployment insurance;
(c) Insurance which protects his or her interest in the collateral pledged for the loan;
(d) Single interest nonfiling insurance; or
(e) Any other credit-related insurance approved by the Commissioner, if the insurance complies with the applicable provisions of chapter 690A of NRS.
4. In accepting any insurance provided by this section as security for a loan, the licensee may include the premiums or identifiable charge as part of the principal or may deduct the premiums or identifiable charge therefor from the proceeds of the loan, which premium or identifiable charge must not exceed those filed with and approved by the Commissioner of Insurance, and remit those premiums to the insurance company writing the insurance, and any gain or advantage to the licensee, any employee, officer, director, agent, affiliate or associate from the insurance or its sale may not be considered as additional or further charge in connection with any loan made under this chapter. Not more than one policy of life insurance and one policy providing accident and health coverage may be written by a licensee in connection with any loan transaction under this chapter, and a licensee shall not require the borrower to be insured as a condition of any loan. If the unpaid balance of the loan is prepaid in full by cash or other thing of value, refinancing, renewal, a new loan or otherwise, the charge for any credit life insurance and any credit accident and health insurance must be refunded or credited as prescribed in chapter 690A of NRS. The insurance must be written by a company authorized to conduct business in this state, and the licensee shall not require the purchase of the insurance from any agent or broker designated by the licensee.
5. The amount charged to a debtor by a licensee for any type of coverage under a policy of insurance provided by this section as security for a loan must not exceed the amount of the premium. In the case of a single interest nonfiling policy of insurance, the amount charged to a debtor by a licensee must not exceed the amount charged by a county recorder for filing and releasing documents pursuant to NRS 104.9525.
6. As used in this section, “single interest nonfiling insurance” means a contract of insurance for which a lender pays a predetermined fee, which affords coverage to a lender in connection with a specific loan, and which is obtained by the lender in lieu of perfecting a security interest pursuant to chapter 104 of NRS.
NRS 675.310 Collection of loans made outside State.
Any loan made outside this state lawfully made 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 675.330 Payment in money, credit, goods or things in action, as consideration for sale, assignment, or order of compensation, deemed loan of money; transaction subject to provisions of chapter.
The payment of money, credit, goods or things in action, as consideration for any sale, assignment or order for the payment of wages, salary, commissions or other compensation for services earned or to be earned, shall, for the purposes of regulation under this chapter, be deemed a loan of money secured by the sale, assignment or order. The amount by which the compensation so sold, assigned or ordered paid exceeds the amount of the consideration actually paid shall, for the purposes of regulation under this chapter, be deemed interest or charges on the loan from the date of the payment to the date the compensation is payable. Such a transaction is subject to the provisions of this chapter.
NRS 675.340 Assignment of wages as security invalid.
No assignment of wages, salary, commissions or other compensation for services, whether earned or to be earned, given to a licensee as security for a loan under this chapter, shall be valid.
NRS 675.350 Prohibited practices by licensees.
No licensee may:
1. Take any confession of judgment or any power of attorney running to himself or herself or to any third person to confess judgment or to appear for the borrower in a judicial proceeding.
2. Take any note or promise to pay which does not disclose the date and amount of the loan obligation, a schedule or description of the payments to be made thereon and the rate or aggregate amount of the agreed charges.
3. Take any instrument in which blanks are left to be filled in after the loan is made.
4. Take a lien upon real property as security for any loan made under this chapter except real property upon which is situated a mobile home or factory-built housing that also secures the loan, and except such lien as is created by law through the rendition or recording of a judgment.
NRS 675.360 Duties of licensee.
Every licensee shall:
1. Deliver to the borrower, or if more than one, to one of them, at the time of making a loan under this chapter a copy of the loan obligation or, in lieu thereof, a statement showing in clear and distinct terms the date of the loan, the amount of the obligation, the date of its maturity, if there is one, the nature of the security, if any, for the loan, the name and address of the borrower and of the licensee, and the description or schedule of payments on that loan.
2. Except as otherwise provided for loans for an indefinite term in NRS 675.369, give to the person making any cash payment on account of any loan a receipt at the time that payment is made, showing the balance due, if any, after application of that payment. A receipt showing the amount of the payment only may be given temporarily and must be replaced within a reasonable time with a receipt as prescribed in this subsection.
3. Permit payment in advance in an amount equal to one or more full installments at any time during the regular business hours of the licensee.
4. Upon repayment of a loan in full, mark plainly every note or other evidence of the indebtedness or assignment signed by any obligor, or a copy thereof, with the word “paid” or “cancelled,” and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the licensee.
LOANS FOR INDEFINITE TERM
NRS 675.361 Terms of written agreement.
A licensee may make a loan for an indefinite term under a written agreement between the licensee and the borrower. Pursuant to this agreement:
1. The borrower may obtain cash advances from the licensee periodically by a check, draft, credit card or any other means or the licensee may pay out money at the borrower’s direction or on his or her behalf;
2. An open-end account must be established for the borrower and the amount of each cash advance made to the borrower and any interest, charges and other costs must be debited to that account and any payments on the loan or other credits must be credited to that account;
3. The interest and other charges must be computed periodically on the unpaid balance in the borrower’s account; and
4. The borrower may pay his or her account in full at any time without a penalty for prepayment, or if the account is not in default, in monthly installments of fixed or determinable amounts as provided in the agreement.
NRS 675.363 Calculation of interest; billing cycle.
1. Under an agreement for a loan for an indefinite term, the licensee may receive interest in any amount or at any annual rate provided in the agreement. This interest must be calculated for each billing cycle in either of the following ways:
(a) By multiplying the daily rate by the daily unpaid balance in the account. The daily rate is determined by dividing the annual rate of interest fixed by the agreement by 365. The daily unpaid balance is determined by adding to any balance remaining unpaid as of the beginning of each day any advances and any appropriate charges, including interest, and by deducting therefrom any payments or other credits made or received on that day.
(b) By multiplying the monthly rate by the average unpaid daily balance in the account for that billing cycle. The monthly rate is determined by dividing the annual rate of interest by 12. The average unpaid daily balance is determined by dividing the sum of all of the daily unpaid balances during the billing cycle by the number of days in the cycle.
2. Unless otherwise provided in the agreement, the billing cycle must be monthly. A billing cycle is monthly if the closing date of the cycle is the same date each month or does not vary by more than 4 days from that date.
NRS 675.365 Fees and charges.
In addition to the interest allowed pursuant to NRS 675.363, a licensee may, pursuant to the agreement for a loan for an indefinite term, receive from the borrower or add to the unpaid balance in that borrower’s account:
1. Any fees imposed on the licensee pursuant to this chapter;
2. Any charge for insurance under NRS 675.300;
3. A charge not exceeding 25 cents for each transaction in which a loan or advance is made pursuant to the agreement or an annual fee for the use of an open-end account in an amount not to exceed $20;
4. If the interest calculated for any billing cycle pursuant to NRS 675.363 is less than 50 cents:
(a) For a billing cycle which is monthly or longer, a charge in an amount not exceeding 50 cents; or
(b) For a billing cycle less than monthly, a charge in an amount equal to that portion of 50 cents which bears the same relation to 50 cents as the number of days in the billing cycle bear to 365 divided by 12;
5. For any check written by the borrower to the licensee which is returned, or any electronic transfer of money that fails, because of insufficient funds, a charge of $10 or in an amount equal to the charges imposed on the licensee because of his or her reliance on that check or electronic transfer of money, whichever amount is greater; and
6. Any charge assessed the licensee by a third party for the printing and distribution of any checks, drafts or other instruments to be used by the borrower in obtaining advances pursuant to the agreement.
NRS 675.367 Borrower must be given description of rate and computation of interest; notice of increase in rate of interest or change in terms.
1. In addition to the information required in subsection 1 of NRS 675.360, a borrower under an agreement for a loan for an indefinite term must be given a description of the agreed annual interest rate, stated as a percentage, the conditions under which interest will be charged and the method used to compute the interest for each billing cycle.
2. The licensee shall notify a borrower of any increase in the rate of interest to be charged or any other change in the terms of the agreement for a loan for an indefinite term:
(a) No later than the date of the first billing after the effective date of the change, if the change in the rate of interest is pursuant to an agreement for the loan which is signed by the borrower and specifies the formula for computation of the adjustment in the rate; or
(b) At least 30 days before the change is to take place for all other loans for an indefinite term.
The change applies only to a debt incurred by the borrower after the effective date of the change, unless otherwise agreed by the borrower. In determining the balance to which an increase in the rate of interest applies, any payment received or other credit made to the borrower’s account applies to the balance existing before the date of that increase until that balance is paid in full.
NRS 675.369 Written statement to borrower; copy of draft or order for payment.
1. If the account of a borrower on a loan for an indefinite term shows a balance due or if any debits or credits were entered on that account during a billing cycle, the licensee shall furnish to the borrower, within a reasonable time after the end of the billing cycle, a written statement setting forth:
(a) The unpaid balance in his or her account at the beginning of the billing cycle;
(b) The date and amount of any loans or advances made on the account during the billing cycle;
(c) Any payments or other credits made or received on the account during the billing cycle;
(d) The amount of interest and other charges, if any, made on the account during the billing cycle;
(e) The amount of the installment due and the date on which that payment must be received; and
(f) The total amount remaining unpaid in the account at the end of that billing cycle.
2. The licensee shall also, upon written request of the borrower, furnish to the borrower a copy of any draft or order for payment received on the account of the borrower during the billing cycle.
CONSUMER CREDIT TO COVERED SERVICE MEMBERS
NRS 675.3693 Limitation on annual percentage rate.
A licensee who makes a loan under this chapter that constitutes consumer credit to a covered service member or his or her dependent shall not charge the covered service member or dependent an annual percentage rate with respect to the loan except as:
1. Agreed to under the terms of the loan agreement;
2. Authorized by applicable state and federal law; and
3. Not specifically prohibited by NRS 99.050, 675.3695 and 675.3697.
NRS 675.3695 Information required to be provided by licensee.
1. Before making a loan under this chapter that constitutes consumer credit to a covered service member or a dependent of a covered service member, a licensee shall provide the following information to the covered service member or the dependent of a covered service member, as applicable, both orally and in writing:
(a) A statement of the annual percentage rate applicable to the loan;
(b) Any disclosures required by the provisions of the Truth in Lending Act and any regulations adopted pursuant thereto; and
(c) A clear description of the payment obligations of the covered service member or dependent, as applicable.
2. A licensee shall present the disclosures required by subsection 1 in accordance with the provisions of Regulation Z.
3. As used in this section:
(a) “Regulation Z” has the meaning ascribed to it in NRS 604A.090.
(b) “Truth in Lending Act” has the meaning ascribed to it in NRS 604A.120.
NRS 675.3697 Prohibited practices by licensee.
A licensee shall not make a loan under this chapter that constitutes consumer credit to a covered service member or a dependent of a covered service member with respect to which:
1. The borrower is required to waive the borrower’s right to legal recourse under any otherwise applicable provision of state or federal law, including, without limitation, any provision of the Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901 et seq.;
2. The licensee imposes onerous legal notice provisions in the case of a dispute or demands unreasonable notice from the borrower as a condition for legal action;
3. The licensee uses a check or other method of access to a deposit, savings or other financial account maintained by the borrower, or the title of a vehicle as security for the obligation;
4. The licensee requires as a condition for the extension of consumer credit that the borrower establish an allotment to repay an obligation; or
5. The borrower is prohibited from prepaying the loan or is charged a penalty or fee for prepaying all or part of the loan.
REVOCATION AND SUSPENSION OF LICENSES
NRS 675.370 License remains effective until expiration, surrender, revocation or suspension.
Each license shall remain in full force and effect until it expires or is surrendered, revoked or suspended as provided in this chapter.
NRS 675.380 Authority of Commissioner to investigate business; free access required.
1. For the purpose of discovering violations of this chapter or of 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 described in NRS 675.060 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 described in NRS 675.060; 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, files, safes and vaults of such persons.
3. The investigation of a registered agent pursuant to subsection 1, including, without limitation, any book, 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 loan transactions is presumed to be engaged in the business described in NRS 675.060.
5. This section does not entitle the Commissioner or the authorized representatives of the Commissioner 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.
NRS 675.390 Authority of Commissioner to require attendance of witnesses and production of documents.
The Commissioner may require the attendance of any person and examine him or her under oath relative to loans or business regulated by this chapter or to the subject matter of any examination, investigation or hearing, and may require the production of books, accounts, papers and records.
NRS 675.400 Commissioner to examine licensee’s business annually; fee.
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 licensed under this chapter.
2. The Commissioner shall charge and collect from each licensee a fee at the rate established and, if applicable, adjusted pursuant to NRS 658.101 for the cost of any supervision, audit, examination, investigation or hearing conducted pursuant to this chapter or any regulations adopted pursuant thereto.
3. All money collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
NRS 675.410 Temporary suspension of license: Conditions; notice; hearing; term of suspension.
If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of a license pending investigation, he or she 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.
NRS 675.420 Surrender of license by licensee; surrender as affecting licensee’s liability.
Any licensee may surrender any license by delivering it to the Commissioner with written notice of its surrender, but a surrender does not affect his or her civil or criminal liability for acts committed prior thereto.
NRS 675.430 Order to desist and refrain; action to enjoin violation; appointment and powers 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, he or she may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring a person to desist or to refrain from such violation.
2. An action may be brought on the relation of the Attorney General and the Commissioner 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.
NRS 675.440 Revocation or suspension of license: Grounds; notice; hearing; order.
1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he or she 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.
2. At the conclusion of a hearing, the Commissioner shall:
(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. A copy of the order must be sent by registered or certified mail to the licensee.
(b) Impose upon the licensee an administrative fine of not more than $10,000 for each violation by the licensee of any provision of this chapter or any lawful regulation adopted under it.
(c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his or her investigative costs and attorney’s fees.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(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 under it;
(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 hereunder; or
(e) The applicant failed to open an office for the conduct of the business authorized under this chapter within 120 days after the date the license was issued, or has failed to remain open for the conduct of the business for a period of 120 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.
NRS 675.445 Revocation or suspension of license: Additional grounds.
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 this chapter.
NRS 675.450 Preexisting contracts unaffected by revocation, suspension, expiration or surrender of license.
No revocation, suspension, expiration or surrender of any license impairs or affects the obligation of any preexisting lawful contract between the licensee and any obligors. Such a contract and all lawful charges thereon may be collected by the licensee, its successors or assigns.
PENALTIES
NRS 675.470 Unlicensed dealing in loans.
Any person and the several members, officers, directors, agents and employees thereof who violate or participate in the violation of any provision of NRS 675.060 are guilty of a misdemeanor.
NRS 675.490 Administrative fines.
In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.
CHAPTER 598 – DECEPTIVE TRADE PRACTICES
CREDIT SERVICE ORGANIZATIONS, ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND HEALTH CLUBS
GENERAL PROVISIONS
NRS 598.701 Definitions. As used in NRS 598.701 to 598.736, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.706, 598.711 and 598.716 have the meanings ascribed to them in those sections.
NRS 598.706 “Commissioner” defined. “Commissioner” means the Commissioner of Mortgage Lending of the Department of Business and Industry.
NRS 598.711 “Division” defined. “Division” means the Division of Mortgage Lending of the Department of Business and Industry.
NRS 598.716 “Registrant” defined. “Registrant” means a credit service organization which is required to register and post security with the Division pursuant to the provisions of this chapter.
NRS 598.721 Registration: Application; fee; deposit of security; certificate of registration; renewal of certificate.
1. Each credit service organization regulated by the provisions of this chapter shall apply for registration on the form prescribed by the Division.
2. At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division.
3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division.
NRS 598.726 Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.
1. Each registrant shall deposit with the Division:
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.
4. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this chapter.
5. A registrant may change the form of security which he or she has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.
6. If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.721 for the purposes of this chapter.
NRS 598.731 Rights and remedies of injured consumers; resolution by Division of claims against security; regulations.
1. The security required to be deposited by a registrant pursuant to NRS 598.726 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.
4. The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
NRS 598.736 Release of security if registrant ceases to operate or registration expires.
1. If no claims have been filed against the security deposited with the Division pursuant to NRS 598.726 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.
2. If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.
3. For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.
(Added to NRS by 1997, 3193)
CREDIT SERVICE ORGANIZATIONS
NRS 598.741 Definitions. As used in NRS 598.741 to 598.787, inclusive, unless the context otherwise requires:
1. “Buyer” means a natural person who is solicited to purchase or who purchases the services of an organization which provides credit services.
2. “Commissioner” means the Commissioner of Mortgage Lending.
3. “Division” means the Division of Mortgage Lending of the Department of Business and Industry.
4. “Extension of credit” means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family or household purposes.
5. “Organization”:
(a) Means a person who, with respect to the extension of credit by others, sells, provides or performs, or represents that he or she can or will sell, provide or perform, any of the following services, in return for the payment of money or other valuable consideration:
(1) Improving a buyer’s credit record, history or rating.
(2) Obtaining an extension of credit for a buyer.
(3) Providing counseling or assistance to a person in establishing or effecting a plan for the payment of his or her indebtedness, unless that counseling or assistance is provided by and is within the scope of the authorized practice of a provider of debt-management services registered pursuant to chapter 676A of NRS.
(4) Providing advice or assistance to a buyer with regard to subparagraph (1) or (2).
(b) Does not include:
(1) A person organized, chartered or holding a license or authorization certificate to make loans or extensions of credit pursuant to the laws of this state or the United States who is subject to regulation and supervision by an officer or agency of this state or the United States.
(2) A bank, credit union, savings and loan institution or savings bank whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 672.755.
(3) A person licensed as a real estate broker by this state where the person is acting within the course and scope of that license, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.
(4) A person licensed to practice law in this state where the person renders services within the course and scope of his or her practice as an attorney at law, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.
(5) A broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of such regulation.
(6) A person registered as a provider of debt-management services pursuant to chapter 676A of NRS.
(7) A reporting agency.
6. “Reporting agency” means a person who, for fees, dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the business of assembling or evaluating information regarding the credit of or other information regarding consumers to furnish consumer reports to third parties, regardless of the means or facility of commerce used to prepare or furnish the consumer reports. The term does not include:
(a) A person solely for the reason that he or she conveys a decision regarding whether to guarantee a check in response to a request by a third party;
(b) A person who obtains or creates a consumer report and provides the report or information contained in it to a subsidiary or affiliate; or
(c) A person licensed pursuant to chapter 463 of NRS.
NRS 598.746 Prohibited acts: Receiving money before complete performance; receiving money for referral to provider of credit; misleading statements; other fraudulent or deceptive acts. An organization and its agents, employees and representatives who sell or attempt to sell the services of the organization, shall not:
1. Charge or receive any money or other valuable consideration before full and complete performance of the services the organization has agreed to perform for or on behalf of the buyer.
2. Charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit which is or will be extended to the buyer is upon substantially the same terms as those available to the general public.
3. Make, counsel or advise any buyer to make, any statement which is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer’s creditworthiness, credit standing or credit capacity.
4. Make or use any untrue or misleading representations in the offer or sale of the services of an organization. For the purposes of this subsection, a “misleading representation” includes a guarantee that:
(a) The organization is able to remove information that is adverse to the buyer’s ability to obtain credit from the buyer’s credit record, history or rating.
(b) The organization is able to obtain an extension of credit for the buyer regardless of the buyer’s existing credit record, history or rating.
5. Engage, directly or indirectly, in any act, practice or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of an organization.
6. Remove, or assist or advise the buyer to remove from the buyer’s credit record, history or rating, information that is adverse to the buyer’s ability to obtain credit if the information is accurate and not obsolete.
7. Create, or assist or advise the buyer to create a new credit record, history or rating by using a different name, address, social security number, employee identification number or other misleading information.
8. Attempt to transfer or assign the organization’s certificate of registration.
9. Submit a buyer’s dispute to a consumer credit reporting agency without the buyer’s knowledge.
10. Call, or authorize any other person who is not the buyer to call a consumer credit reporting agency and portray himself or herself as the buyer.
NRS 598.752 Organization to register and deposit security before advertising services or conducting business in this State; separate security not required from salesperson, agent or representative of organization; regulations.
1. Before advertising its services or conducting business in this State, an organization must register pursuant to NRS 598.721 and deposit security in the amount of $100,000 with the Division pursuant to NRS 598.726. The security must be conditioned on compliance by the organization with the provisions of NRS 598.746 to 598.772, inclusive, and the terms of its contracts with buyers.
2. If an organization has deposited the required security, a salesperson, agent or representative of the organization who sells its services is not required to deposit his or her own separate security. For the purposes of this subsection, a person is a salesperson, agent or representative of an organization if:
(a) He or she does business under the same name as the organization; or
(b) The organization and the issuer of the security certify in writing that the security covers the salesperson, agent or representative.
3. The Division shall adopt such regulations as it deems necessary to carry out the provisions of this section.
NRS 598.757 Organization to provide buyer certain information in writing.
1. Before the execution of a contract between the buyer and an organization or before the receipt by the organization of any money or other valuable consideration, whichever occurs first, the organization must provide to the buyer, in writing:
(a) A statement:
(1) That the buyer has a right pursuant to 15 U.S.C. §§ 1681g and 1681h to receive disclosure of all information, except medical information, in any file on him or her maintained by a consumer credit reporting agency;
(2) That 15 U.S.C. § 1681j requires that this disclosure be made free to the buyer if he or she requests it within 30 days after receipt of notice of a denial of credit;
(3) Of the approximate cost to the buyer of receiving this disclosure when there has not been a denial of credit; and
(4) That the buyer has the right pursuant to 15 U.S.C. § 1681i to dispute the completeness or accuracy of any item contained in any file on him or her maintained by any consumer credit reporting agency.
(b) A detailed description of the services to be performed by the organization for the buyer and the total amount the buyer will become obligated to pay for the services.
(c) A statement that the buyer has a right to proceed against the security deposited with the Division by the organization under the circumstances and in the manner set forth in NRS 598.731 and 598.736. The statement provided pursuant to this paragraph must include the name and address of the issuer of the security.
(d) A statement that the buyer may cancel a contract for the services of an organization within 5 days after its execution by written notice mailed or delivered to the organization.
(e) A statement identifying the availability of any nonprofit association which provides services similar to those offered by the organization. The statement provided pursuant to this paragraph must include the association’s telephone number, including the association’s national toll-free telephone number, if any.
2. The written information provided pursuant to subsection 1 must be printed in at least 10-point bold type and must include the following statement or a similar statement approved by the Division:
RIGHTS OF CONSUMERS REGARDING CREDIT FILES
PURSUANT TO STATE AND FEDERAL LAW
You have the right to obtain a copy of your credit file from a consumer credit reporting agency. There is no fee if, within the past 30 days, you have been turned down for credit, employment or insurance because of information in your credit report. The consumer credit reporting agency is obligated to provide someone to help you interpret the information in your credit file.
You have a right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit service organization has the right to have accurate, current and verifiable information removed from your credit report. Generally, under the Fair Credit Reporting Act, the consumer credit reporting agency is obligated to remove accurate, negative information from your report only if it is more than 7 years old and bankruptcy information can be reported for 10 years. If you have notified a credit reporting agency that you dispute the accuracy of information in your credit file, the consumer credit reporting agency is obligated to make an investigation and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any relevant information and copies of all documents you have concerning the disputed information should be given to the consumer credit reporting agency. If the investigation does not resolve the dispute to your satisfaction, you may send a brief statement to the consumer credit reporting agency to keep in your credit file, explaining why you think the information in the credit file is inaccurate. The consumer credit reporting agency is obligated to include your statement or a summary of your statement about disputed information in any report it issues about you.
RIGHTS OF CONSUMERS REGARDING
CANCELLATION OF A CONTRACT
You have a right to give written notice of your intent to cancel a contract with a credit service organization for any reason within 5 working days from the date you signed it. If for any reason you do cancel a contract during this time, you do not owe any money. You have a right to sue a credit service organization if it misleads you.
3. The organization shall retain a copy of the written information it provides pursuant to the requirements of subsections 1 and 2 for not less than 2 years.
NRS 598.762 Requirements of contract for purchase of services; copy of contract must be retained by organization.
1. A contract between a buyer and an organization for the purchase of the services of the organization:
(a) Must be in writing;
(b) Must be signed by the buyer;
(c) Must be dated; and
(d) Must clearly indicate above the signature line that the buyer may cancel the contract within 5 days after its execution by giving written notice to the organization of his or her intent to cancel the contract. If the notice is mailed, it must be postmarked not later than 5 days after the execution of the contract.
2. A copy of each contract executed by a buyer and an organization must be retained by the organization for not less than 2 years.
NRS 598.767 Organization to maintain registered agent for service of legal process. An organization shall file with the Division the information required pursuant to NRS 77.310 and continuously maintain a registered agent for service of legal process.
NRS 598.772 Waiver of statutory rights prohibited; burden of proof upon person claiming exemption or exception from definition.
1. Any waiver by a buyer of the provisions of NRS 598.746 to 598.777, inclusive, is contrary to public policy and is void and unenforceable. Any attempt by an organization to have a buyer waive rights given by NRS 598.746 to 598.777, inclusive, is unlawful.
2. In any proceeding involving NRS 598.741 to 598.787, inclusive, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
NRS 598.777 Buyer’s action for recovery of damages or injunctive relief; attorney’s fees; punitive damages. A buyer injured by a violation of NRS 598.746 to 598.772, inclusive, or by a breach by an organization of a contract subject to those sections, may bring an action for recovery of damages, for injunctive relief or for both recovery of damages and injunctive relief. Judgment for damages must be entered for actual damages, but in no case less than the amount paid by the buyer to the organization, plus reasonable attorney’s fees and costs. If the court deems it proper, the court may award punitive damages.
NRS 598.782 Criminal penalty.
1. Except as otherwise provided in subsection 2, a person who violates any provision of NRS 598.746 to 598.772, inclusive, is guilty of a misdemeanor.
2. A person who breaches a contract subject to NRS 598.746 to 598.772, inclusive, is not guilty of a misdemeanor solely because of the breach.
NRS 598.787 Provisions and remedies not exclusive; violation constitutes deceptive trade practice.
1. The provisions of NRS 598.746 to 598.777, inclusive, are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with any other applicable provision of law.
2. The remedies provided in NRS 598.772 and 598.777 for violation of any provision of NRS 598.746 to 598.772, inclusive, are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.
3. Any violation of NRS 598.746 to 598.772, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.