As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 604A.015
to 604A.125 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2005, 1683 )
1. “Automated loan machine” means any machine or other device,
regardless of the name given to it or the technology used, that:
(a) Is automated;
(b) Is designed or intended to allow a customer, without any
additional assistance from another person, to receive or attempt to
receive a deferred deposit loan or short-term loan through the machine or
other device; and
(c) Is set up, installed, operated or maintained by or on behalf of
the person making the loan or any agent, affiliate or subsidiary of the
person.
2. The term does not include any machine or other device used
directly by a customer to access the Internet unless the machine or other
device is made available to the customer by the person making the loan or
any agent, affiliate or subsidiary of the person.
(Added to NRS by 2005, 1683 )
“Cashing” means providing
currency or a negotiable instrument in exchange for a check.
(Added to NRS by 2005, 1684 )
1. “Check” means:
(a) A draft, other than a documentary draft, payable on demand and
drawn on a bank; or
(b) A cashier’s check or teller’s check.
2. An instrument may be a check even though it is described on its
face by another term, such as “money order.”
(Added to NRS by 2005, 1684 )
“Check-cashing
service” means any person engaged in the business of cashing checks for a
fee, service charge or other consideration.
(Added to NRS by 2005, 1684 )
“Commissioner” means the
Commissioner of Financial Institutions.
(Added to NRS by 2005, 1684 )
“Customer” means any person who
receives or attempts to receive check-cashing services, deferred deposit
loan services, short-term loan services or title loan services from
another person.
(Added to NRS by 2005, 1684 )
1. “Default” means the failure of a customer to:
(a) Make a scheduled payment on a loan on or before the due date
for the payment under the terms of a lawful loan agreement and any grace
period that complies with the provisions of NRS 604A.210 or under the terms of any lawful extension
or repayment plan relating to the loan and any grace period that complies
with the provisions of NRS 604A.210 ;
or
(b) Pay a loan in full on or before:
(1) The expiration of the initial loan period as set forth
in a lawful loan agreement and any grace period that complies with the
provisions of NRS 604A.210 ; or
(2) The due date of any lawful extension or repayment plan
relating to the loan and any grace period that complies with the
provisions of NRS 604A.210 , provided
that the due date of the extension or repayment plan does not violate the
provisions of this chapter.
2. A default occurs on the day immediately following the date of
the customer’s failure to perform as described in subsection 1.
(Added to NRS by 2005, 1684 )
“Deferred deposit
loan” means a transaction in which, pursuant to a loan agreement:
1. A customer tenders to another person:
(a) A personal check drawn upon the account of the customer; or
(b) Written authorization for an electronic transfer of money for a
specified amount from the account of the customer; and
2. The other person:
(a) Provides to the customer an amount of money that is equal to
the face value of the check or the amount specified in the written
authorization for an electronic transfer of money, less any fee charged
for the transaction; and
(b) Agrees, for a specified period, not to cash the check or
execute an electronic transfer of money for the amount specified in the
written authorization.
(Added to NRS by 2005, 1684 )
“Deferred
deposit loan service” means any person engaged in the business of making
deferred deposit loans for a fee, service charge or other consideration.
(Added to NRS by 2005, 1684 )
“Electronic
transfer of money” means any transfer of money, other than a transaction
initiated by a check or other similar instrument, that is initiated
through an electronic terminal, telephone, computer or magnetic tape for
the purpose of ordering, instructing or authorizing a financial
institution to debit or credit an account.
(Added to NRS by 2005, 1684 )
1. “Extension” means any extension or rollover of a loan beyond
the date on which the loan is required to be paid in full under the
original terms of the loan agreement, regardless of the name given to the
extension or rollover.
2. The term does not include a grace period.
(Added to NRS by 2005, 1685 )
“Grace period” means any
period of deferment offered gratuitously by a licensee to a customer if
the licensee complies with the provisions of NRS 604A.210 .
(Added to NRS by 2005, 1685 )
“Licensee” means any person who
has been issued one or more licenses to operate a check-cashing service,
deferred deposit loan service, short-term loan service or title loan
service pursuant to the provisions of this chapter.
(Added to NRS by 2005, 1685 )
“Loan” means any deferred deposit
loan, short-term loan or title loan, or any extension or repayment plan
relating to such a loan, made at any location or through any method,
including, without limitation, at a kiosk, through the Internet, through
any telephone, facsimile machine or other telecommunication device or
through any other machine, network, system, device or means.
(Added to NRS by 2005, 1685 )
“Refund
anticipation loan” means a loan offered or made to a taxpayer by a lender
or through a facilitator based on the taxpayer’s anticipated federal
income tax refund.
(Added to NRS by 2005, 1685 )
“Regulation Z” means the
federal regulations, as amended, 12 C.F.R. Part 226, adopted pursuant to
the Truth in Lending Act and commonly known as Regulation Z.
(Added to NRS by 2005, 1685 )
1. “Short-term loan” means a loan made to a customer pursuant to a
loan agreement which, under its original terms:
(a) Charges an annual percentage rate of more than 40 percent; and
(b) Requires the loan to be paid in full in less than 1 year.
2. The term does not include:
(a) A deferred deposit loan;
(b) A title loan; or
(c) A refund anticipation loan.
(Added to NRS by 2005, 1685 )
“Short-term loan
service” means any person engaged in the business of providing short-term
loans for a fee, service charge or other consideration.
(Added to NRS by 2005, 1685 )
1. “Title loan” means a loan made to a customer pursuant to a loan
agreement which, under its original terms:
(a) Charges an annual percentage rate of more than 35 percent; and
(b) Requires the customer to secure the loan by giving possession
of the title to a vehicle legally owned by the customer to the person
making the loan, or to any agent, affiliate or subsidiary of the person,
whether or not the person making the loan or taking possession of the
title perfects a security interest in the vehicle by having the person’s
name noted on the title as a lienholder.
2. The term does not include:
(a) A loan which creates a purchase-money security interest in a
vehicle or the refinancing of any such loan; or
(b) Any other loan for which a vehicle is used as security or
collateral if the person making the loan, or any agent, affiliate or
subsidiary of the person, does not take possession of the title.
(Added to NRS by 2005, 1685 )
“Title loan service”
means any person engaged in the business of providing title loans for a
fee, service charge or other consideration.
(Added to NRS by 2005, 1686 )
“Title to a
vehicle” or “title” means a certificate of title or ownership issued
pursuant to the laws of this State that identifies the legal owner of a
vehicle or any similar document issued pursuant to the laws of another
jurisdiction.
(Added to NRS by 2005, 1686 )
“Truth in Lending
Act” means the federal Truth in Lending Act, as amended, 15 U.S.C. §§
1601 et seq.
(Added to NRS by 2005, 1686 )
1. “Vehicle” means any vehicle, whether or not self-propelled,
that is designed or intended for land transportation if the legal owner
of the vehicle is required to have a title.
2. The term includes, without limitation:
(a) Passenger vehicles;
(b) Recreational vehicles; and
(c) House trailers and travel trailers.
3. The term does not include:
(a) Farm vehicles;
(b) Vehicles of a common or contract carrier;
(c) Commercial vehicles;
(d) Construction vehicles;
(e) Military vehicles;
(f) Vehicles used exclusively upon stationary rails or tracks; or
(g) Any other vehicles which are similar in nature to the vehicles
listed in paragraphs (a) to (f), inclusive, and which the Commissioner,
by regulation, excludes from the definition of “vehicle.”
(Added to NRS by 2005, 1686 )
1. As used in this chapter, unless the context otherwise requires,
the following terms have the meanings ascribed to them in the Truth in
Lending Act and Regulation Z:
(a) “Amount financed.”
(b) “Annual percentage rate.”
(c) “Finance charge.”
(d) “Payment schedule.”
(e) “Total of payments.”
2. For the purposes of this chapter, proper calculation of the
amount financed, annual percentage rate and finance charge for a loan
must be made in accordance with the Truth in Lending Act and Regulation Z.
(Added to NRS by 2005, 1686 )
SCOPE AND APPLICABILITY
The provisions of this chapter apply to any person who
seeks to evade its application by any device, subterfuge or pretense,
including, without limitation, calling a loan by any other name or using
any agents, affiliates or subsidiaries in an attempt to avoid the
application of the provisions of this chapter.
(Added to NRS by 2005, 1686 )
The provisions of this chapter do not prohibit a
licensee from offering a customer a grace period on the repayment of a
loan or an extension of a loan, except that the licensee shall not charge
the customer:
1. Any fees for granting such a grace period; or
2. Any additional fees or additional interest on the outstanding
loan during such a grace period.
(Added to NRS by 2005, 1686 )
1. The provisions of this chapter must be interpreted so as to
effectuate their general purpose to provide for, to the extent
practicable, uniform regulation of the loans and transactions that are
subject to the provisions of this chapter.
2. If there is a conflict between the provisions of this chapter
and the provisions of any other general law regulating loans and similar
transactions, the provisions of this chapter control.
(Added to NRS by 2005, 1686 )
This chapter or any part thereof may be
modified, amended or repealed by the Legislature so as to effect a
cancellation or alteration of any license or right of a licensee under
this chapter, provided that such cancellation or alteration shall not
impair or affect the obligation of any preexisting lawful loan agreement
between any licensee and any customer.
(Added to NRS by 2005, 1687 )
Any loan
lawfully made outside this State as permitted by the laws of the state in
which the loan was made may be collected or otherwise enforced in this
State in accordance with its terms.
(Added to NRS by 2005, 1687 )
The provisions of this
chapter do not apply to:
1. A person doing business pursuant to the authority of any law of
this State or of the United States relating to banks, savings banks,
trust companies, savings and loan associations, credit unions,
development corporations, mortgage brokers, mortgage bankers, thrift
companies or insurance companies.
2. A person who is primarily engaged in the retail sale of goods
or services who:
(a) As an incident to or independently of a retail sale or service,
from time to time cashes checks for a fee or other consideration of not
more than $2; and
(b) Does not hold himself out as a check-cashing service.
3. A person while performing any act authorized by a license
issued pursuant to chapter 671 of NRS.
4. A person who holds a nonrestricted gaming license issued
pursuant to chapter 463 of NRS while
performing any act in the course of that licensed operation.
5. A person who is exclusively engaged in a check-cashing service
relating to out-of-state checks.
6. A corporation organized pursuant to the laws of this State that
has been continuously and exclusively engaged in a check-cashing service
in this State since July 1, 1973.
7. A pawnbroker, unless the pawnbroker operates a check-cashing
service, deferred deposit loan service, short-term loan service or title
loan service.
8. A real estate investment trust, as defined in 26 U.S.C. § 856.
9. An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if
the loan is made directly from money in the plan by the plan’s trustee.
10. An attorney at law rendering services in the performance of
his duties as an attorney at law if the loan is secured by real property.
11. A real estate broker rendering services in the performance of
his duties as a real estate broker if the loan is secured by real
property.
12. 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.
13. A person who provides money for investment in loans secured by
a lien on real property, on his own account.
14. A seller of real property who offers credit secured by a
mortgage of the property sold.
15. A person who makes a refund anticipation loan, unless the
person operates a check-cashing service, deferred deposit loan service,
short-term loan service or title loan service.
(Added to NRS by 2005, 1687 )
ADMINISTRATION
1. The Commissioner may establish by regulation the fees that a
licensee who provides check-cashing services may impose for cashing
checks.
2. The Commissioner shall adopt any other regulations as are
necessary to carry out the provisions of this chapter.
(Added to NRS by 2005, 1688 )
1. Except as otherwise provided in subsection 3, an officer or
employee of the Division of Financial Institutions of the Department of
Business and Industry shall not:
(a) Be directly or indirectly interested in or act on behalf of any
licensee;
(b) Receive, directly or indirectly, any payment from any licensee;
(c) Be indebted to any licensee;
(d) Engage in the negotiation of loans for others with any
licensee; or
(e) Obtain credit or services from a licensee conditioned upon a
fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division of Financial Institutions in the
unclassified service of the State shall not obtain new extensions of
credit from a licensee while in office.
3. Any officer or employee of the Division of Financial
Institutions may be indebted to a licensee on the same terms as are
available to the public generally.
4. If an officer or employee of the Division of Financial
Institutions has a service, a preferred consideration, an interest or a
relationship prohibited by this section at the time of his appointment or
employment, or obtains it during his employment, he shall terminate it
within 120 days after the date of his appointment or employment or the
discovery of the prohibited act.
(Added to NRS by 2005, 1705 )
REGULATION OF BUSINESS PRACTICES
1. A person, including, without limitation, a person licensed
pursuant to chapter 675 of NRS, shall not
operate a check-cashing service, deferred deposit loan service,
short-term loan service or title loan service unless the person is
licensed with the Commissioner pursuant to the provisions of this chapter.
2. A person must have a license regardless of the location or
method that the person uses to operate such a service, including, without
limitation, at a kiosk, through the Internet, through any telephone,
facsimile machine or other telecommunication device or through any other
machine, network, system, device or means, except that the person shall
not operate such a service through any automated loan machine in
violation of the provisions of subsection 3.
3. A person shall not operate a deferred deposit loan service or
short-term loan service through any automated loan machine, and the
Commissioner shall not issue a license that authorizes the licensee to
conduct business through any automated loan machine.
4. Any person, and any member, officer, director, agent or
employee thereof, who violates or participates in the violation of any
provision of this section is guilty of a misdemeanor.
(Added to NRS by 2005, 1688 ; A 2005, 22nd Special Session, 97 )
1. A licensee shall post in a conspicuous place in every location
at which he conducts business under his license:
(a) A notice that states the fees he charges for providing
check-cashing services, deferred deposit loan services, short-term loan
services or title loan services.
(b) A notice that states a toll-free telephone number to the Office
of the Commissioner to handle concerns or complaints of customers.
Ê The Commissioner shall adopt regulations prescribing the form and size
of the notices required by this subsection.
2. If a licensee offers loans to customers at a kiosk, through the
Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system,
device or means, except for an automated loan machine prohibited by NRS
604A.400 , the licensee shall, as
appropriate to the location or method for making the loan, post in a
conspicuous place where customers will see it before they enter into a
loan, or disclose in an open and obvious manner to customers before they
enter into a loan, a notice that states:
(a) The types of loans the licensee offers and the fees he charges
for making each type of loan; and
(b) A list of the states where the licensee is licensed or
authorized to conduct business from outside this State with customers
located in this State.
3. A licensee who provides check-cashing services shall give
written notice to each customer of the fees he charges for cashing
checks. The customer must sign the notice before the licensee provides
the check-cashing service.
(Added to NRS by 2005, 1688 )
1. Before making any loan to a customer, a licensee shall provide
to the customer a written loan agreement which may be kept by the
customer and which must be written in:
(a) English, if the transaction is conducted in English; or
(b) Spanish, if the transaction is conducted in Spanish.
2. The loan agreement must include, without limitation, the
following information:
(a) The name and address of the licensee and the customer;
(b) The nature of the security for the loan, if any;
(c) The date and amount of the loan, amount financed, annual
percentage rate, finance charge, total of payments, payment schedule and
a description and the amount of every fee charged, regardless of the name
given to the fee and regardless of whether the fee is required to be
included in the finance charge under the Truth in Lending Act and
Regulation Z;
(d) A disclosure of the right of the customer to rescind a loan
pursuant to the provisions of this chapter;
(e) A disclosure of the right of the customer to pay his loan in
full or in part with no additional charge pursuant to the provisions of
this chapter;
(f) A disclosure stating that, if the customer defaults on the
loan, the customer has the opportunity within 30 days of the date of
default to enter into a repayment plan with a term of at least 90 days,
and that the licensee must offer the repayment plan to the customer
before the licensee commences any civil action or process of alternative
dispute resolution or, if appropriate for the loan, before the licensee
repossesses a vehicle; and
(g) Any other disclosures required under the Truth in Lending Act
and Regulation Z or under any other applicable federal or state statute
or regulation.
(Added to NRS by 2005, 1689 )
1. If a customer defaults on a loan, the licensee may collect the
debt owed to the licensee only in a professional, fair and lawful manner.
When collecting such a debt, the licensee must act in accordance with and
must not violate sections 803 to 812, inclusive, of the federal Fair Debt
Collection Practices Act, as amended, 15 U.S.C. §§ 1692a to 1692j,
inclusive, even if the licensee is not otherwise subject to the
provisions of that Act.
2. If a licensee commences a civil action against a customer to
collect a debt, the court may award:
(a) Court costs;
(b) Costs of service of process, except that the costs must not
exceed the amount of the fees charged by the sheriff or constable for
service of process in the county where the action was brought or, if the
customer was not served in that county, in the county where the customer
was served; and
(c) Reasonable attorney’s fees. In determining the amount of the
attorney’s fees and whether they are reasonable, the court shall consider
the complexity of the case, the amount of the debt and whether the
licensee could have used less costly means to collect the debt.
3. Notwithstanding any provision of NRS 66.010 to the contrary, if:
(a) A licensee intends to commence a civil action in a Justice
Court against a customer to collect a debt; and
(b) The customer resides in the county where the loan was made,
Ê the licensee is required to commence the civil action in the Justice
Court for the township where the loan was made unless, after the date of
default and before the licensee commences the civil action, the customer
signs an affidavit agreeing to try the action in another Justice Court
having jurisdiction over the subject matter and the parties. A licensee
shall not, directly or indirectly, require, intimidate, threaten or
coerce a customer to sign such an affidavit.
(Added to NRS by 2005, 1689 )
1. If a customer is called to active duty in the military, a
licensee shall:
(a) Defer for the duration of the active duty all collection
activity against the customer and his property, including, without
limitation, any community property in which the customer has an interest;
and
(b) Honor the terms of any repayment plan between the licensee and
customer, including, without limitation, any repayment plan negotiated
through military counselors or third-party credit counselors.
2. When collecting any defaulted loan, a licensee shall not:
(a) Garnish or threaten to garnish any wages or salary paid to a
customer for active service in the military; or
(b) Contact or threaten to contact the military chain of command of
a customer in an effort to collect the defaulted loan.
3. As used in this section, “military” means the Armed Forces of
the United States, a reserve component thereof or the National Guard.
(Added to NRS by 2005, 1690 )
1. A licensee shall not:
(a) Make a deferred deposit loan that exceeds 25 percent of the
expected gross monthly income of the customer when the loan is made; or
(b) Make a short-term loan which, under the terms of the loan
agreement, requires any monthly payment that exceeds 25 percent of the
expected gross monthly income of the customer.
2. A licensee is not in violation of the provisions of this
section if the customer presents evidence of his gross monthly income to
the licensee and represents to the licensee in writing that:
(a) For a deferred deposit loan, the loan does not exceed 25
percent of his expected gross monthly income when the loan is made; or
(b) For a short-term loan, the monthly payment required under the
terms of the loan agreement does not exceed 25 percent of his expected
gross monthly income.
(Added to NRS by 2005, 1690 )
A licensee shall not make more than one deferred
deposit loan or short-term loan to the same customer at one time or
before any outstanding balance is paid in full on an existing loan made
by that licensee to the customer unless:
1. The customer is seeking multiple loans that do not exceed the
limits set forth in NRS 604A.425 ;
2. The licensee charges the same or a lower annual percentage rate
for any additional loans as he charged for the initial loan;
3. Except for that part of the finance charge which consists of
interest only, the licensee does not impose any other charge or fee to
initiate any additional loans, except that a licensee who makes deferred
deposit loans or short-term loans in accordance with the provisions of
subsection 2 of NRS 604A.480 may
charge a reasonable fee for preparing documents in an amount that does
not exceed $50; and
4. If the additional loans are deferred deposit loans and the
customer provides one or more additional checks that are not paid upon
presentment, the licensee does not charge any fees to the customer
pursuant to NRS 604A.490 , except for
the fees allowed pursuant to that section for the first check that is not
paid upon presentment.
(Added to NRS by 2005, 1690 )
A licensee shall not:
1. Accept:
(a) Collateral as security for a loan, except that a title to a
vehicle may be accepted as security for a title loan.
(b) An assignment of wages, salary, commissions or other
compensation for services, whether earned or to be earned, as security
for a loan.
(c) A check as security for a short-term loan or title loan.
(d) More than one check or written authorization for an electronic
transfer of money for each deferred deposit loan.
(e) A check or written authorization for an electronic transfer of
money for any deferred deposit loan in an amount which exceeds the total
of payments set forth in the disclosure statement required by the Truth
in Lending Act and Regulation Z that is provided to the customer.
2. Take any note or promise to pay which does not disclose the
date and amount of the loan, amount financed, annual percentage rate,
finance charge, total of payments, payment schedule and a description and
the amount of every fee charged, regardless of the name given to the fee
and regardless of whether the fee is required to be included in the
finance charge under the Truth in Lending Act and Regulation Z.
3. Take any instrument, including a check or written authorization
for an electronic transfer of money, in which blanks are left to be
filled in after the loan is made.
4. Make any transaction contingent on the purchase of insurance or
any other goods or services or sell any insurance to the customer with
the loan.
5. Fail to comply with a payment plan which is negotiated and
agreed to by the licensee and customer.
6. Charge any fee to cash a check representing the proceeds of a
loan made by the licensee or any agent, affiliate or subsidiary of the
licensee.
(Added to NRS by 2005, 1691 )
Notwithstanding certain definitions in the provisions of former NRS ch.
604 (cf. NRS ch. 604A ), a deferred deposit transaction is an extension
of credit, and such a transaction is subject to Regulation Z of the
federal Truth in Lending Act if the transaction is entered into primarily
for personal, family or household purposes. (See also NRS 604A.150 , 604A.410 , 604A.435 and 604A.485 .) (N.B., in 2005, the provisions of NRS ch.
604 were repealed and replaced by the
provisions of NRS ch. 604A .) AGO 99-04
(2-1-1999)
A licensee shall not:
1. Use or threaten to use the criminal process in this State or
any other state, or any civil process not available to creditors
generally, to collect on a loan made to a customer.
2. Commence a civil action or any process of alternative dispute
resolution or repossess a vehicle before the customer defaults under the
original term of a loan agreement or before the customer defaults under
any repayment plan, extension or grace period negotiated and agreed to by
the licensee and customer, unless otherwise authorized pursuant to this
chapter.
3. Take any confession of judgment or any power of attorney
running to himself or to any third person to confess judgment or to
appear for the customer in a judicial proceeding.
4. Include in any written agreement:
(a) A promise by the customer to hold the licensee harmless;
(b) A confession of judgment by the customer;
(c) An assignment or order for the payment of wages or other
compensation due the customer; or
(d) A waiver of any claim or defense arising out of the loan
agreement or a waiver of any provision of this chapter. The provisions of
this paragraph do not apply to the extent preempted by federal law.
5. Engage in any deceptive trade practice, as defined in chapter
598 of NRS, including, without limitation,
making a false representation.
6. Advertise or permit to be advertised in any manner any false,
misleading or deceptive statement or representation with regard to the
rates, terms or conditions for loans.
7. Use or attempt to use any agent, affiliate or subsidiary to
avoid the requirements or prohibitions of this chapter.
(Added to NRS by 2005, 1691 )
Notwithstanding any other provision of this
chapter to the contrary:
1. The original term of a title loan must not exceed 30 days.
2. The title loan may be extended for not more than six additional
periods of extension, with each such period not to exceed 30 days, if:
(a) Any interest or charges accrued during the original term of the
title loan or any period of extension of the title loan are not
capitalized or added to the principal amount of the title loan during any
subsequent period of extension;
(b) The annual percentage rate charged on the title loan during any
period of extension is not more than the annual percentage rate charged
on the title loan during the original term; and
(c) No additional origination fees, set-up fees, collection fees,
transaction fees, negotiation fees, handling fees, processing fees, late
fees, default fees or any other fees, regardless of the name given to the
fees, are charged in connection with any extension of the title loan.
(Added to NRS by 2005, 1692 )
A licensee who
makes title loans shall not:
1. Make a title loan that exceeds the fair market value of the
vehicle securing the title loan.
2. Make a title loan without regard to the ability of the customer
seeking the title loan to repay the title loan, including the customer’s
current and expected income, obligations and employment.
3. Make a title loan without requiring the customer to sign an
affidavit which states that:
(a) The customer has provided the licensee with true and correct
information concerning the customer’s income, obligations, employment and
ownership of the vehicle; and
(b) The customer has the ability to repay the title loan.
(Added to NRS by 2005, 1692 )
1. Except where in conflict with the provisions of this section,
the provisions of chapter 104 of NRS apply to
any title loan between a licensee and a customer.
2. Except as otherwise provided in this section, if a customer
defaults on a title loan, or on any extension or repayment plan relating
to the title loan, the sole remedy of the licensee who made the title
loan is to seek repossession and sale of the vehicle which the customer
used to secure the title loan. The licensee may not pursue the customer
personally for:
(a) Payment of the loan, unless the licensee proves the customer
prevented the repossession and sale of the vehicle by any means,
including, without limitation, hiding the vehicle; or
(b) Any deficiency after repossession and sale of the vehicle which
the customer used to secure the title loan, unless the licensee proves
the customer damaged or otherwise committed or permitted waste on the
vehicle. For the purposes of this paragraph, it shall not be deemed waste
for the customer to continue to use the vehicle in the same manner it was
used before he entered into the title loan.
3. If a vehicle is repossessed pursuant to this section:
(a) By the licensee or his employees, the licensee shall make
reasonably available to the customer any personal property in or upon the
vehicle; or
(b) By a third party acting on behalf of the licensee, the licensee
shall instruct the third party to make reasonably available to the
customer any personal property in or upon the vehicle.
4. If a customer uses fraud to secure a title loan or if the
customer wrongfully transfers any interest in the vehicle to a third
party before the title loan is repaid, the licensee may bring a civil
action against the customer for any or all of the following relief:
(a) The amount of the loan obligation, including, without
limitation, the aggregate amount of the interest, charges and fees
negotiated and agreed to by the licensee and customer as permitted under
this chapter, less any prior payments made by the customer;
(b) Reasonable attorney’s fees and costs; and
(c) Any other legal or equitable relief that the court deems
appropriate.
5. As used in this section, “fraud” means an intentional
misrepresentation, deception or concealment of a material fact known to
the customer with the intent to deprive the licensee of his rights or
property or to otherwise injure the licensee. The term includes, without
limitation, giving to a licensee as security for a title loan the title
to a vehicle which does not belong to the customer.
(Added to NRS by 2005, 1692 )
1. A customer may rescind a loan on or before the close of
business on the next day of business at the location where the loan was
initiated. To rescind the loan, the customer must deliver to the licensee:
(a) A sum of money equal to the face value of the loan, less any
fee charged to the customer to initiate the loan; or
(b) The original check, if any, which the licensee gave to the
customer pursuant to the loan. Upon receipt of the original check, the
licensee shall refund any fee charged to the customer to initiate the
loan.
2. If a customer rescinds a loan pursuant to this section, the
licensee:
(a) Shall not charge the customer any fee for rescinding the loan;
and
(b) Upon receipt of the sum of money or check pursuant to
subsection 1, shall give to the customer a receipt showing the account
paid in full and:
(1) If the customer gave to the licensee a check or a
written authorization for an electronic transfer of money to initiate a
deferred deposit loan, the check or written authorization stamped “void”;
(2) If the customer gave to the licensee a promissory note
to initiate a short-term loan, a copy of the promissory note stamped
“void” or the receipt stamped “paid in full”; or
(3) If the customer gave to the licensee a title to a
vehicle to initiate the title loan, the title.
(Added to NRS by 2005, 1693 )
1. A customer may pay a loan, or any extension thereof, in full at
any time, without an additional charge or fee, before the date his final
payment on the loan, or any extension thereof, is due.
2. If a customer pays the loan in full, including all interest,
charges and fees negotiated and agreed to by the licensee and customer as
permitted under this chapter, the licensee shall:
(a) Give to the customer:
(1) If the customer gave to the licensee a check or a
written authorization for an electronic transfer of money to initiate a
deferred deposit loan, the check or the written authorization stamped
“void”;
(2) If the customer gave to the licensee a promissory note
to initiate a short-term loan, the promissory note stamped “void” or a
receipt stamped “paid in full”; or
(3) If the customer gave to the licensee a title to a vehicle
to initiate a title loan, the title; and
(b) Give to the customer a receipt with the following information:
(1) The name and address of the licensee;
(2) The identification number assigned to the loan agreement
or other information that identifies the loan;
(3) The date of the payment;
(4) The amount paid;
(5) An itemization of interest, charges and fees;
(6) A statement that the loan is paid in full; and
(7) If more than one loan made by the licensee to the
customer was outstanding at the time the payment was made, a statement
indicating to which loan the payment was applied.
(Added to NRS by 2005, 1693 )
1. A customer may make a partial payment on a loan, or any
extension thereof, at any time without an additional charge or fee.
2. If a customer makes such a partial payment, the licensee shall
give to the customer a receipt with the following information:
(a) The name and address of the licensee;
(b) The identification number assigned to the loan agreement or
other information that identifies the loan;
(c) The date of the payment;
(d) The amount paid;
(e) An itemization of interest, charges and fees;
(f) The balance due on the loan; and
(g) If more than one loan made by the licensee to the customer was
outstanding at the time the payment was made, a statement indicating to
which loan the payment was applied.
(Added to NRS by 2005, 1694 )
1. Before a licensee attempts to collect the outstanding balance
on a loan in default by commencing any civil action or process of
alternative dispute resolution or by repossessing a vehicle, the licensee
shall offer the customer an opportunity to enter into a repayment plan.
The licensee:
(a) Is required to make the offer available to the customer for a
period of at least 30 days after the date of default; and
(b) Is not required to make such an offer more than once for each
loan.
2. Not later than 15 days after the date of default, the licensee
shall provide to the customer written notice of the opportunity to enter
into a repayment plan. The written notice must:
(a) Be in English, if the initial transaction was conducted in
English, or in Spanish, if the initial transaction was conducted in
Spanish;
(b) State the date by which the customer must act to enter into a
repayment plan;
(c) Explain the procedures the customer must follow to enter into a
repayment plan;
(d) If the licensee requires the customer to make an initial
payment to enter into a repayment plan, explain the requirement and state
the amount of the initial payment and the date the initial payment must
be made;
(e) State that the customer has the opportunity to enter into a
repayment plan with a term of at least 90 days after the date of default;
and
(f) Include the following amounts:
(1) The total of payments or the remaining balance on the
original loan;
(2) Any payments made on the loan;
(3) Any charges added to the loan amount allowed pursuant to
the provisions of this chapter; and
(4) The total amount due if the customer enters into a
repayment plan.
3. Under the terms of any repayment plan pursuant to this section:
(a) The customer must enter into the repayment plan not later than
30 days after the date of default, unless the licensee allows a longer
period;
(b) The licensee must allow the period for repayment to extend at
least 90 days after the date of default, unless the customer agrees to a
shorter term;
(c) The licensee may require the customer to make an initial
payment of not more than 20 percent of the total amount due under the
terms of the repayment plan;
(d) For a deferred deposit loan:
(1) The licensee may require a customer to provide, as
security, one or more checks or written authorizations for an electronic
transfer of money which equal the total amount due under the terms of the
repayment plan;
(2) The licensee shall, if the customer makes a payment in
the amount of a check or written authorization taken as security for that
payment, return to the customer the check or written authorization
stamped “void” or destroy the check or written authorization; and
(3) The licensee shall not charge any fee to the customer
pursuant to NRS 604A.490 for a check
which is provided as security during the repayment plan and which is not
paid upon presentment if, in connection with that loan, the licensee has
previously charged at least one such fee.
4. If the licensee and customer enter into a repayment plan
pursuant to this section, the licensee shall honor the terms of the
repayment plan, and the licensee shall not:
(a) Except as otherwise provided by this chapter, charge any other
amount to a customer, including, without limitation, any amount or charge
payable directly or indirectly by the customer and imposed directly or
indirectly by the licensee as an incident to or as a condition of
entering into a repayment plan. Such an amount includes, without
limitation:
(1) Any interest, regardless of the name given to the
interest, other than the interest charged pursuant to the original loan
agreement at a rate which does not exceed the annual percentage rate
charged during the term of the original loan agreement; or
(2) Any origination fees, set-up fees, collection fees,
transaction fees, negotiation fees, handling fees, processing fees, late
fees, default fees or any other fees, regardless of the name given to the
fee;
(b) Except as otherwise provided in this section, accept any
additional security or collateral from the customer to enter into the
repayment plan;
(c) Sell to the customer any insurance or require the customer to
purchase insurance or any other goods or services to enter into the
repayment plan;
(d) Make any other loan to the customer, unless the customer is
seeking multiple loans that do not exceed the limit set forth in NRS
604A.425 ;
(e) During the term of the repayment plan, attempt to collect the
outstanding balance by commencing any civil action or process of
alternative dispute resolution or by repossessing a vehicle, unless the
customer defaults on the repayment plan; or
(f) Attempt to collect an amount that is greater than the amount
owed under the terms of the repayment plan.
5. If the licensee and customer enter into a repayment plan
pursuant to this section, the licensee shall:
(a) Prepare a written agreement establishing the repayment plan; and
(b) Give the customer a copy of the written agreement. The written
agreement must:
(1) Be signed by the licensee and customer; and
(2) Contain all of the terms of the repayment plan,
including, without limitation, the total amount due under the terms of
the repayment plan.
6. Each time a customer makes a payment pursuant to a repayment
plan, the licensee shall give to the customer a receipt with the
following information:
(a) The name and address of the licensee;
(b) The identification number assigned to the loan agreement or
other information that identifies the loan;
(c) The date of the payment;
(d) The amount paid;
(e) The balance due on the loan or, when the customer makes the
final payment, a statement that the loan is paid in full; and
(f) If more than one loan made by the licensee to the customer was
outstanding at the time the payment was made, a statement indicating to
which loan the payment was applied.
7. If the customer defaults on the repayment plan, the licensee
may, to collect the outstanding balance, commence any civil action or
process of alternative dispute resolution or repossess a vehicle as
otherwise authorized pursuant to this chapter.
(Added to NRS by 2005, 1694 )
1. Except as otherwise provided in subsection 2, if a customer
agrees to establish or extend the period for the repayment, renewal,
refinancing or consolidation of an outstanding loan by using the proceeds
of a new deferred deposit loan or short-term loan to pay the balance of
the outstanding loan, the licensee shall not establish or extend such a
period beyond 60 days after the expiration of the initial loan period.
2. This section does not apply to a deferred deposit loan or
short-term loan if the licensee:
(a) Makes the deferred deposit loan or short-term loan to a
customer pursuant to a loan agreement which, under its original terms:
(1) Charges an annual percentage rate of less than 200
percent;
(2) Requires the customer to make a payment on the loan at
least once every 30 days;
(3) Requires the loan to be paid in full in not less than
150 days; and
(4) Provides that interest does not accrue on the loan at
the annual percentage rate set forth in the loan agreement after the date
of maturity of the loan;
(b) Performs a credit check of the customer with a major consumer
reporting agency before making the loan;
(c) Reports information relating to the loan experience of the
customer to a major consumer reporting agency;
(d) Gives the customer the right to rescind the deferred deposit
loan or short-term loan within 5 days after the loan is made without
charging the customer any fee for rescinding the loan;
(e) Participates in good faith with a counseling agency that is:
(1) Accredited by the Council on Accreditation for Services
for Families and Children, Inc., or its successor organization; and
(2) A member of the National Foundation for Credit
Counseling, or its successor organization; and
(f) Does not commence any civil action or process of alternative
dispute resolution on a defaulted loan or any extension or repayment plan
thereof.
(Added to NRS by 2005, 1696 )
1. Except as otherwise provided in NRS 604A.445 , if a customer defaults on a loan or on any
extension or repayment plan relating to the loan, whichever is later, the
licensee may collect only the following amounts from the customer, less
all payments made before and after default:
(a) The principal amount of the loan.
(b) The interest accrued before the expiration of the initial loan
period at the annual percentage rate set forth in the disclosure
statement required by the Truth in Lending Act and Regulation Z that is
provided to the customer. If there is an extension relating to the loan,
the licensee may charge and collect interest pursuant to this paragraph
for a period not to exceed 60 days after the expiration of the initial
loan period, unless otherwise allowed by NRS 604A.480 .
(c) The interest accrued after the expiration of the initial loan
period or after any extension or repayment plan that is allowed pursuant
to this chapter, whichever is later, at an annual percentage rate not to
exceed the prime rate at the largest bank in Nevada, as ascertained by
the Commissioner, on January 1 or July 1, as the case may be, immediately
preceding the expiration of the initial loan period, plus 10 percent. The
licensee may charge and collect interest pursuant to this paragraph for a
period not to exceed 90 days. After that period, the licensee shall not
charge or collect any interest on the loan.
(d) Any fees allowed pursuant to NRS 604A.490 for a check that is not paid upon
presentment because the account of the customer contains insufficient
funds or has been closed.
2. Except for the interest and fees permitted pursuant to
subsection 1 and any other charges expressly permitted pursuant to NRS
604A.430 , 604A.445 and 604A.475 , the licensee shall not charge any other
amount to a customer, including, without limitation, any amount or charge
payable directly or indirectly by the customer and imposed directly or
indirectly by the licensee as an incident to or as a condition of the
extension of the period for the payment of the loan or the extension of
credit. Such an amount includes, without limitation:
(a) Any interest, other than the interest charged pursuant to
subsection 1, regardless of the name given to the interest; or
(b) Any origination fees, set-up fees, collection fees, transaction
fees, negotiation fees, handling fees, processing fees, late fees,
default fees or any other fees, regardless of the name given to the fee.
(Added to NRS by 2005, 1697 )
Notwithstanding certain definitions in the provisions of former NRS ch.
604 (cf. NRS ch. 604A ), a deferred deposit transaction is an extension
of credit, and such a transaction is subject to Regulation Z of the
federal Truth in Lending Act if the transaction is entered into primarily
for personal, family or household purposes. (See also NRS 604A.150 , 604A.410 , 604A.435 and 604A.485 .) (N.B., in 2005, the provisions of NRS ch.
604 were repealed and replaced by the
provisions of NRS ch. 604A .) AGO 99-04
(2-1-1999)
1. A licensee may collect a fee of not more than $25 if a check is
not paid upon presentment because the account of the customer contains
insufficient funds or has been closed.
2. If the account of the customer contains insufficient funds, the
licensee may collect only two fees of $25 each regardless of the number
of times the check is presented for payment.
3. If the account of the customer has been closed, the licensee
may collect only one fee of $25 regardless of the number of times the
check is presented for payment.
4. A customer is not liable for damages pursuant to NRS 41.620
or to criminal prosecution for a
violation of chapter 205 of NRS unless the
customer acted with criminal intent.
(Added to NRS by 2005, 1698 )
In addition to any other provision in this chapter, each time
a customer makes a payment to a licensee, the licensee shall give to the
customer a receipt with the following information:
1. The name and address of the licensee;
2. The identification number assigned to the loan agreement or
other information that identifies the loan;
3. The date of the payment;
4. The amount paid;
5. The balance due on the loan or, when the customer makes a final
payment, a statement that the loan is paid in full; and
6. If more than one loan made by the licensee to the customer was
outstanding at the time the payment was made, a statement indicating to
which loan the payment was applied.
(Added to NRS by 2005, 1698 )
1. A person shall not act as an agent for or assist a licensee in
the making of a loan unless the licensee complies with all applicable
federal and state laws, regulations and guidelines.
2. The provisions of this section do not apply to the agent or
assistant to a state or federally chartered bank, thrift company, savings
and loan association or industrial loan company if the state or federally
chartered bank, thrift company, savings and loan association or
industrial loan company:
(a) Initially advances the loan proceeds to the customer; and
(b) Does not sell, assign or transfer a preponderant economic
interest in the loan to the agent or assistant or an affiliate or
subsidiary of the state or federally chartered bank, thrift company,
savings and loan association or industrial loan company, unless selling,
assigning or transferring a preponderant economic interest is expressly
permitted by the primary regulator of the state or federally chartered
bank, thrift company, savings and loan association or industrial loan
company.
3. If a licensee acts as an agent for or assists a state or
federally chartered bank, thrift company, savings and loan association or
industrial loan company in the making of a loan and the licensee can show
that the standards set forth in subsection 2 are satisfied, the licensee
must comply with all other provisions in this chapter to the extent they
are not preempted by other state or federal law.
(Added to NRS by 2005, 1698 )
LICENSING
1. An application for a license pursuant to the provisions of this
chapter must be made in writing, under oath and on a form prescribed by
the Commissioner. The application must include:
(a) If the applicant is a natural person, the name and address of
the applicant.
(b) If the applicant is a business entity, the name and address of
each:
(1) Partner;
(2) Officer;
(3) Director;
(4) Manager or member who acts in a managerial capacity; and
(5) Registered agent,
Ê of the business entity.
(c) Such other information, as the Commissioner determines
necessary, concerning the financial responsibility, background,
experience and activities of the applicant and its:
(1) Partners;
(2) Officers;
(3) Directors; and
(4) Managers or members who act in a managerial capacity.
(d) The address of each location at which the applicant proposes to
do business under the license, including, without limitation, each
location where the applicant will operate at a kiosk, through the
Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system,
device or means, except that the applicant shall not propose to do
business through any automated loan machine prohibited by NRS 604A.400
.
(e) If the applicant is or intends to be licensed to provide more
than one type of service pursuant to the provisions of this chapter, a
statement of that intent and which services he provides or intends to
provide.
2. Each application for a license must be accompanied by:
(a) A nonrefundable application fee;
(b) Such additional expenses incurred in the process of
investigation as the Commissioner deems necessary; and
(c) A fee of not less than $100 or more than $500, prorated on the
basis of the licensing year.
Ê All money received by the Commissioner pursuant to this subsection must
be placed in the Investigative Account for Financial Institutions created
by NRS 232.545 .
3. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn
if the Commissioner has not received all information and fees required to
complete the application within 6 months after the date the application
is first submitted to the Commissioner or within such later period as the
Commissioner determines in accordance with any existing policies of joint
regulatory partners. If an application is deemed to be withdrawn pursuant
to this subsection or if an applicant otherwise withdraws an application,
the Commissioner may not issue a license to the applicant unless the
applicant submits a new application and pays any required fees.
(Added to NRS by 2005, 1699 )
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 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.
(Added to NRS by 2005, 1702 ; A 2005, 22nd Special Session, 99 )
1. Except as otherwise provided in NRS 604A.615 , each application for a license pursuant to
the provisions of this chapter must be accompanied by a surety bond
payable to the State of Nevada in the amount of $50,000 plus an
additional $5,000 for each branch location at which the applicant
proposes to do business under the license. Thereafter, each licensee
shall maintain the surety bond so that the amount of the surety bond is
$50,000 plus an additional $5,000 for each branch location at which the
licensee does business under the license. The surety bond required by
this section is for the use and benefit of any customer receiving the
services of the licensee at any location at which the licensee does
business under the license.
2. Each bond must be in a form satisfactory to the Commissioner,
issued by a bonding company authorized to do business in this State and
must secure the faithful performance of the obligations of the licensee
respecting the provision of the services.
3. A licensee shall, within 10 days after the commencement of any
action or notice of entry of any judgment against him by any creditor or
claimant arising out of business regulated by this chapter give notice
thereof to the Commissioner by certified mail with details sufficient to
identify the action or judgment. The surety shall, within 10 days after
it pays any claim or judgment to a creditor or claimant, give notice
thereof to the Commissioner by certified mail with details sufficient to
identify the creditor or claimant and the claim or judgment so paid.
4. Whenever the principal sum of any bond is reduced by recoveries
or payments thereon, the licensee shall furnish:
(a) A new or additional bond so that the total or aggregate
principal sum of the bonds equals the sum required pursuant to subsection
1; or
(b) An endorsement, duly executed by the surety, reinstating the
bond to the required principal sum.
5. The liability of the surety on a bond to a creditor or claimant
is not affected by any misrepresentation, breach of warranty, failure to
pay a premium or other act or omission of the licensee, or by any
insolvency or bankruptcy of the licensee.
6. The liability of the surety continues as to all transactions
entered into in good faith by the creditors and claimants with the agents
of the licensee within 30 days after:
(a) The death of the licensee or the dissolution or liquidation of
his business; or
(b) The termination of the bond,
Ê whichever event occurs first.
7. A licensee or his surety shall not cancel or alter a bond
except after notice to the Commissioner by certified mail. The
cancellation or alteration is not effective until 10 days after receipt
of the notice by the Commissioner. A cancellation or alteration does not
affect any liability incurred or accrued on the bond before the
expiration of the 30-day period designated in subsection 6.
(Added to NRS by 2005, 1700 ; A 2005, 22nd Special Session, 97 )
1. In lieu of any surety bond, or any portion of the principal sum
thereof as required pursuant to the provisions of this chapter, a
licensee may deposit with the State Treasurer or with any bank, credit
union or trust company authorized to do business in this State as the
licensee may select, with the approval of the Commissioner:
(a) Interest-bearing stocks;
(b) Bills, bonds, notes, debentures or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed by
the United States; or
(c) Any obligation of this State or any city, county, town,
township, school district or other instrumentality of this State or
guaranteed by this State,
Ê in an aggregate amount, based upon principal amount or market value,
whichever is lower, of not less than the amount of any required surety
bond or portion thereof.
2. The securities must be held to secure the same obligation as
would any surety bond, but the depositor may receive any interest or
dividends and, with the approval of the Commissioner, substitute other
suitable securities for those deposited.
(Added to NRS by 2005, 1700 ; A 2005, 22nd Special Session, 98 )
1. A person may apply for a license for an office or other place
of business located outside this State from which the applicant will
conduct business in this State if the applicant or a subsidiary or
affiliate of the applicant has a license issued pursuant to this chapter
for an office or other place of business located in this State and if the
applicant submits with the application for a license a statement signed
by the applicant which states that the applicant agrees to:
(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.
Ê The person must be allowed to choose between the provisions of
paragraph (a) or (b) in complying with the provisions of this subsection.
2. This section applies, without limitation, to any office or
other place of business located outside this State from which the
applicant will conduct business in this State at a kiosk, through the
Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system,
device or means, except that the applicant shall not conduct business in
this State through any automated loan machine prohibited by NRS 604A.400
.
(Added to NRS by 2005, 1701 )
1. Upon the filing of the application and the payment of the fees
required pursuant to NRS 604A.600 ,
the Commissioner shall investigate the facts concerning the application
and the requirements provided for in NRS 604A.605 and 604A.635 .
2. The Commissioner may hold a hearing on the application at a
time not less than 30 days after the date the application was filed or
not more than 60 days after that date. The hearing must be held in the
Office of the Commissioner or such other place as he 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 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.
(Added to NRS by 2005, 1701 )
If the
Commissioner finds that any applicant does not possess the requirements
specified in this chapter, he shall:
1. Enter an order denying the application and notify the applicant
of the denial.
2. Within 10 days after the entry of such an order, file his
findings and a summary of the evidence supporting those findings and
deliver a copy thereof to the applicant.
(Added to NRS by 2005, 1702 )
1. The Commissioner shall enter an order granting an application
if he finds that:
(a) The financial responsibility, experience, character and general
fitness of the applicant are such as to command the confidence of the
public and to warrant belief that the business will be operated lawfully,
honestly, fairly and efficiently; and
(b) The applicant has satisfied the requirements set forth in NRS
604A.605 .
2. If the Commissioner grants an application, the Commissioner
shall:
(a) File his findings of fact together with the transcript of any
hearing held pursuant to the provisions of this chapter; and
(b) Issue to the licensee a license in such form and size as is
prescribed by the Commissioner for each location at which the licensee
proposes to do business.
3. Each licensee shall prominently display his license at the
location where he does business. The Commissioner may issue additional
licenses to the same licensee for each branch location at which the
licensee is authorized to operate under the license, including, without
limitation, each branch location where the licensee is authorized to
operate at a kiosk, through the Internet, through any telephone,
facsimile machine or other telecommunication device or through any other
machine, network, system, device or means, except that the Commissioner
shall not issue any license that would authorize the licensee to operate
through any automated loan machine prohibited by NRS 604A.400 . Nothing in this subsection requires a
license for any place of business devoted to accounting, recordkeeping or
administrative purposes only.
4. Each license must:
(a) State the address at which the business is to be conducted; and
(b) State fully:
(1) The name and address of the licensee;
(2) If the licensee is a copartnership or association, the
names of its members; and
(3) If the licensee is a corporation, the date and place of
its incorporation.
5. A license is not transferable or assignable.
(Added to NRS by 2005, 1702 )
1. A license issued pursuant to the provisions of this chapter
expires annually on the anniversary of the issuance of the license. A
licensee must renew his license on or before the date on which the
license expires by paying:
(a) A renewal fee of not more than $500; and
(b) An additional fee of not more than $100 for each branch
location at which the licensee is authorized to operate under the license.
2. A licensee who fails to renew his license within the time
required by this section is not licensed pursuant to the provisions of
this chapter.
3. The Commissioner may reinstate an expired license upon receipt
of the renewal fee and a fee for reinstatement.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
(Added to NRS by 2005, 1703 ; A 2005, 22nd Special Session, 100 )
1. A licensee shall immediately notify the Commissioner of any
change of control of the licensee.
2. A person who acquires stock, partnership or member interests
resulting in a change of control of the licensee shall apply to the
Commissioner for approval of the transfer. The application must contain
information which shows that the requirements for obtaining a license
pursuant to the provisions of this chapter will be satisfied after the
change of control. If the Commissioner determines that those requirements
will not be satisfied, he may deny the application and forbid the
applicant from participating in the business of the licensee.
3. As used in this section, “change of control” means:
(a) A transfer of voting stock, partnership or member interests
which results in giving a person, directly or indirectly, the power to
direct the management and policy of a licensee; or
(b) A transfer of at least 25 percent of the outstanding voting
stock, partnership or member interests of the licensee.
(Added to NRS by 2005, 1703 )
1. A licensee shall not conduct the business of making loans under
any name, at any place or by any method, including, without limitation,
at a kiosk, through the Internet, through any telephone, facsimile
machine or other telecommunication device or through any other machine,
network, system, device or means, except as permitted in the license or
branch license issued to the licensee.
2. A licensee must obtain the approval of the Commissioner before
using or changing a business name.
3. A licensee shall not:
(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.
(Added to NRS by 2005, 1703 )
1. Except as otherwise provided in this section, a licensee may
not conduct the business of making loans within any office, suite, room
or place of business in which any other lending business is solicited or
engaged in, except an insurance agency or notary public, or in
association or conjunction with any other business, unless authority to
do so is given by the Commissioner.
2. A licensee may conduct the business of making loans in the same
office or place of business as:
(a) A mortgage broker if:
(1) The licensee and the mortgage broker:
(I) Maintain separate accounts, books and records;
(II) Are subsidiaries of the same parent corporation;
and
(III) Maintain separate licenses; and
(2) The mortgage broker is licensed by this State pursuant
to chapter 645B of NRS and does not receive
money to acquire or repay loans or maintain trust accounts as provided by
NRS 645B.175 .
(b) A mortgage banker if:
(1) The licensee and the mortgage banker:
(I) Maintain separate accounts, books and records;
(II) Are subsidiaries of the same parent corporation;
and
(III) Maintain separate licenses; and
(2) The mortgage banker is licensed by this State pursuant
to chapter 645E of NRS and, if the mortgage
banker is also licensed as a mortgage broker pursuant to chapter 645B
of NRS, does not receive money to acquire
or repay loans or maintain trust accounts as provided by NRS 645B.175
.
3. If a pawnbroker is licensed to operate a check-cashing service,
deferred deposit loan service, short-term loan service or title loan
service, the pawnbroker may operate that service at the same office or
place of business from which he conducts business as a pawnbroker
pursuant to chapter 646 of NRS.
(Added to NRS by 2005, 1704 )
1. A licensee who wishes to change the address of an office or
other place of business for which he has a license pursuant to the
provisions of this chapter must, at least 10 days before changing the
address, give written notice of the proposed change to the Commissioner.
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.
4. This section applies, without limitation, to any office or
other place of business at which the licensee intends to operate a kiosk,
through the Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system,
device or means, except that the licensee shall not operate any automated
loan machine prohibited by NRS 604A.400 .
(Added to NRS by 2005, 1704 )
RECORDS, REPORTS AND EXAMINATIONS
1. Each licensee shall keep and use in his business such books and
accounting records as are in accord with generally accepted accounting
practices.
2. Each licensee shall maintain a separate written or electronic
record or ledger card for the account of each customer and shall set
forth separately the amount of cash advance and the total amount of
interest and charges, but such a record may set forth precomputed
declining balances based on the scheduled payments, without a separation
of principal and charges.
3. Each licensee shall preserve all such books and accounting
records for at least 2 years after making the final entry therein.
4. Each licensee who operates outside this State an office or
other place of business that is licensed pursuant to provisions of this
chapter shall:
(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.
Ê The licensee must be allowed to choose between the provisions of
paragraph (a) or (b) in complying with this subsection.
5. As used in this section, “amount of cash advance” means the
amount of cash or its equivalent actually received by a customer or paid
out at his direction or in his behalf.
(Added to NRS by 2005, 1705 )
1. For the purpose of discovering violations of this chapter or of
securing information lawfully required under this chapter, the
Commissioner or his duly authorized representatives may at any time
investigate the business and examine the books, accounts, papers and
records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business of making loans or
participating in such business as principal, agent, broker or otherwise;
and
(c) 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
authorized representatives shall have and be given free access to the
offices and places of business, and the files, safes and vaults of such
persons.
3. For the purposes of this section, any person who advertises
for, solicits or holds himself out as willing to make any deferred
deposit loan, short-term loan or title loan is presumed to be engaged in
the business of making loans.
(Added to NRS by 2005, 1706 )
1. The Commissioner may require the attendance of any person and
examine him under oath regarding:
(a) Any check-cashing service or loan service regulated pursuant to
the provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or
hearing.
2. The Commissioner may require the production of books, accounts,
papers and records for any audit, examination, investigation or hearing.
(Added to NRS by 2005, 1706 )
1. At least once each year, the Commissioner or his authorized
representatives shall make an examination of the place of business of
each licensee and of the loans, transactions, books, accounts, papers and
records of the licensee so far as they pertain to the business for which
he is licensed pursuant to the provisions of this chapter.
2. If, after auditing one or more branch locations of the
licensee, the Commissioner or his authorized representatives conclude
that the loans, disclosures, loan practices, computer processes, filing
systems and records are identical at each branch location, the
Commissioner may make an examination of only those branch locations he
deems necessary.
(Added to NRS by 2005, 1706 )
1. The Commissioner shall charge and collect from each licensee a
fee of not more than $80 per hour for any supervision, audit,
examination, investigation or hearing conducted pursuant to this chapter
or any regulations adopted pursuant thereto.
2. The Commissioner shall bill each licensee upon the completion
of the activity for the fee required pursuant to subsection 1. The
licensee shall pay the fee within 30 days after the date the bill is
received. Except as otherwise provided in this subsection, any payment
received after the date due must include a penalty of 10 percent of the
fee plus an additional 1 percent of the fee for each month, or portion of
a month, that the fee is not paid. The Commissioner may waive the penalty
for good cause.
3. The failure of a licensee to pay the fee required pursuant to
subsection 1 as provided in this section constitutes grounds for
revocation of the license of the licensee.
4. The Commissioner shall adopt regulations establishing the amount
of the fee required pursuant to this section.
(Added to NRS by 2005, 1706 ; A 2005, 22nd Special Session, 100 )
1. Annually, on or before April 15, each licensee shall file with
the Commissioner a report of operations of the licensed business for the
preceding calendar year.
2. The licensee shall make the report under oath and on a form
prescribed by the Commissioner.
3. If any person or affiliated group holds more than one license
in this State, it may file a composite annual report.
(Added to NRS by 2005, 1708 )
1. If a licensee fails to submit any report required pursuant to
this chapter or any regulation adopted pursuant thereto within the
prescribed period, the Commissioner may impose and collect a fee of not
more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the
amount of the fee that may be imposed pursuant to this section.
(Added to NRS by 2005, 22nd Special Session, 101 )
DISCIPLINARY ACTION
If the Commissioner finds that probable
cause for revocation of any license exists and that enforcement of the
provisions of this chapter requires immediate suspension of a license
pending investigation, he may, upon 5 days’ written notice and a hearing,
enter an order suspending a license for a period not exceeding 20 days,
pending a hearing upon the revocation.
(Added to NRS by 2005, 1707 )
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 may, in addition to all actions provided
for in this chapter and without prejudice thereto, enter an order
requiring the person to desist or to refrain from such violation.
2. The Attorney General or the Commissioner may bring an action to
enjoin a person from engaging in or continuing a violation or from doing
any act or acts in furtherance thereof. In any such action, an order or
judgment may be entered awarding a preliminary or final injunction as may
be deemed proper.
3. In addition to all other means provided by law for the
enforcement of a restraining order or injunction, the court in which an
action is brought may impound, and appoint a receiver for, the property
and business of the defendant, including books, papers, documents and
records pertaining thereto, or so much thereof as the court may deem
reasonably necessary to prevent violations of this chapter through or by
means of the use of property and business. 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 him by the court.
(Added to NRS by 2005, 1707 )
1. If the Commissioner has reason to believe that grounds for
revocation or suspension of a license exist, he 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. The
Commissioner shall send a copy of the order to the licensee by registered
or certified mail.
(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 regulation adopted pursuant thereto.
(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
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 pursuant thereto;
(c) The licensee has failed to pay a tax as required pursuant to
the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the
Commissioner in denying the licensee’s original application for a license
pursuant to the provisions of this chapter; or
(e) The licensee:
(1) Failed to open an office for the conduct of the business
authorized by his license within 180 days after the date his license was
issued; or
(2) Has failed to remain open for the conduct of the business
for a period of 180 days without good cause therefor.
4. Any revocation or suspension applies only to the license
granted to a person for the particular office for which grounds for
revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5
days after being entered unless the order specifies otherwise or a stay
is granted.
(Added to NRS by 2005, 1707 ; A 2005, 22nd Special Session, 100 )
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.
(Added to NRS by 2005, 1707 )
A licensee may surrender any license issued pursuant to the
provisions of this chapter by delivering it to the Commissioner with
written notice of its surrender, but a surrender does not affect his
civil or criminal liability for acts committed prior thereto.
(Added to NRS by 2005, 1708 )
A revocation,
suspension, expiration or surrender of any license does not impair or
affect the obligation of any preexisting lawful loan agreement between
the licensee and any customer. Such a loan agreement and all lawful
charges thereon may be collected by the licensee, its successors or
assigns.
(Added to NRS by 2005, 1708 )
REMEDIES AND PENALTIES
1. Except as otherwise provided in this section, if a licensee
willfully:
(a) Enters into a loan agreement for an amount of interest or any
other charge or fee that violates the provisions of this chapter or any
regulation adopted pursuant thereto;
(b) Demands, collects or receives an amount of interest or any
other charge or fee that violates the provisions of this chapter or any
regulation adopted pursuant thereto; or
(c) Commits any other act or omission that violates the provisions
of this chapter or any regulation adopted pursuant thereto,
Ê the loan is void and the licensee is not entitled to collect, receive
or retain any principal, interest or other charges or fees with respect
to the loan.
2. The provisions of this section do not apply if:
(a) A licensee shows by a preponderance of the evidence that the
violation was not intentional and resulted from a bona fide error of
computation, notwithstanding the maintenance of procedures reasonably
adapted to avoid that error; and
(b) Within 60 days after discovering the error, the licensee
notifies the customer of the error and makes whatever adjustments in the
account are necessary to correct the error.
(Added to NRS by 2005, 1708 )
In
addition to any other remedy or penalty, the Commissioner may impose an
administrative fine of not more than $50,000 upon a person who, without a
license, conducts any business or activity for which a license is
required pursuant to the provisions of this chapter.
(Added to NRS by 2005, 1709 ; A 2005, 22nd Special Session, 101 )
If a person
operates a check-cashing service, deferred deposit loan service,
short-term loan service or title loan service without obtaining a license
pursuant to this chapter:
1. Any contracts entered into by that person for the cashing of a
check or for a deferred deposit loan, short-term loan or title loan are
voidable by the other party to the contract; and
2. In addition to any other remedy or penalty, the other party to
the contract may bring a civil action against the person pursuant to NRS
604A.930 .
(Added to NRS by 2005, 22nd Special Session, 101 )
1. Subject to the affirmative defense set forth in subsection 3,
in addition to any other remedy or penalty, if a person violates any
provision of NRS 604A.400 , 604A.410
to 604A.500 , inclusive, 604A.610 , 604A.615 , 604A.650 or 604A.655 or any regulation adopted pursuant thereto,
the customer may bring a civil action against the person for any or all
of the following relief:
(a) Actual and consequential damages;
(b) Punitive damages, which are subject to the provisions of NRS
42.005 ;
(c) Reasonable attorney’s fees and costs; and
(d) Any other legal or equitable relief that the court deems
appropriate.
2. Subject to the affirmative defense set forth in subsection 3,
in addition to any other remedy or penalty, the customer may bring a
civil action against a person pursuant to subsection 1 to recover an
additional amount, as statutory damages, which is equal to $1,000 for
each violation if the person knowingly:
(a) Operates a check-cashing service, deferred deposit loan
service, short-term loan service or title loan service without a license,
in violation of NRS 604A.400 ;
(b) Fails to include in a loan agreement a disclosure of the right
of the customer to rescind the loan, in violation of NRS 604A.410 ;
(c) Violates any provision of NRS 604A.420 ;
(d) Accepts collateral or security for a deferred deposit loan, in
violation of NRS 604A.435 , except
that a check or written authorization for an electronic transfer of money
shall not be deemed to be collateral or security for a deferred deposit
loan;
(e) Uses or threatens to use the criminal process in this State or
any other state to collect on a loan made to the customer, in violation
of NRS 604A.440 ;
(f) Includes in any written agreement a promise by the customer to
hold the person harmless, a confession of judgment by the customer or an
assignment or order for the payment of wages or other compensation due
the customer, in violation of NRS 604A.440 ;
(g) Violates any provision of NRS 604A.485 ; or
(h) Violates any provision of NRS 604A.490 .
3. A person may not be held liable in any civil action brought
pursuant to this section if the person proves, by a preponderance of
evidence, that the violation:
(a) Was not intentional;
(b) Was technical in nature; and
(c) Resulted from a bona fide error, notwithstanding the
maintenance of procedures reasonably adapted to avoid any such error.
4. For the purposes of subsection 3, a bona fide error includes,
without limitation, clerical errors, calculation errors, computer
malfunction and programming errors and printing errors, except that an
error of legal judgment with respect to the person’s obligations under
this chapter is not a bona fide error.
(Added to NRS by 2005, 1709 )
1. A court of this State may exercise jurisdiction over a party to
a civil action arising under the provisions of this chapter on any basis
not inconsistent with the Constitution of the State of Nevada or the
Constitution of the United States.
2. Personal service of summons upon a party outside this State is
sufficient to confer upon a court of this State jurisdiction over the
party so served if the service is made by delivering a copy of the
summons, together with a copy of the complaint, to the party served in
the manner provided by statute or rule of court for service upon a person
of like kind within this State.
3. In all cases of such service, the defendant has 40 days,
exclusive of the day of service, within which to answer or plead.
4. This section provides an additional manner of serving process
and does not invalidate any other service.
(Added to NRS by 2005, 1708 )
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