As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 604B.020
to 604B.120 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2005, 1643 )
“Customer” means a person who,
in connection with the preparation or filing of a tax return, applies for
a refund anticipation loan or receives the proceeds of a refund
anticipation loan.
(Added to NRS by 2005, 1643 )
1. “Facilitator of a refund anticipation loan” or “facilitator”
means a person who:
(a) Receives or accepts for delivery an application for a refund
anticipation loan;
(b) Delivers a check in payment of the proceeds of a refund
anticipation loan; or
(c) In any other manner, acts to allow or facilitates the offering
or making of a refund anticipation loan.
2. The term includes, without limitation, a tax preparer who
engages in any of the acts described in subsection 1.
3. The term does not include:
(a) A bank, thrift, savings association, industrial bank or credit
union operating under the laws of the United States or this State;
(b) An affiliate, other than a tax preparer, that is a servicer for
such an entity; or
(c) Any person who acts solely as an intermediary and does not deal
with a customer in the making of a refund anticipation loan.
(Added to NRS by 2005, 1643 )
“Internal
Revenue Service” means the Internal Revenue Service of the United States
Department of the Treasury.
(Added to NRS by 2005, 1643 )
“Lender” means a person who offers
to extend or extends credit to a customer in the form of a refund
anticipation loan.
(Added to NRS by 2005, 1643 )
1. “Refund anticipation loan” means a loan offered or made to a
customer by a lender or through a facilitator based on the customer’s
anticipated federal income tax refund.
2. The term includes, without limitation, a refund anticipation
loan offered or made using electronic commerce.
(Added to NRS by 2005, 1643 )
1. “Refund anticipation loan fee” means any fee, charge or other
consideration imposed by a lender or a facilitator for a refund
anticipation loan.
2. The term does not include any fee, charge or other
consideration usually imposed by a facilitator in the ordinary course of
business for nonloan services, such as fees for preparing tax returns and
fees for the electronic filing of tax returns.
(Added to NRS by 2005, 1643 )
1. “Refund anticipation loan fee schedule” means a listing or
table of refund anticipation loan fees charged by a lender or a
facilitator for three or more representative refund anticipation loan
amounts.
2. A refund anticipation loan fee schedule must:
(a) List separately each fee or charge imposed and a total of all
fees and charges imposed which are related to the making of refund
anticipation loans; and
(b) Include, for each representative loan amount, the estimated
annual percentage rate calculated under the guidelines established by the
Truth in Lending Act and Regulation Z.
(Added to NRS by 2005, 1643 )
“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, 1644 )
“Tax preparer” means a
person who engages in the business of preparing or filing tax returns for
any fee, charge or other consideration.
(Added to NRS by 2005, 1644 )
“Tax return” means a federal
income tax return.
(Added to NRS by 2005, 1644 )
“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, 1644 )
REGULATION OF BUSINESS PRACTICES
A facilitator of a refund
anticipation loan shall post the refund anticipation loan fee schedule
used by the facilitator in a conspicuous place in every location at which
the facilitator conducts business.
(Added to NRS by 2005, 1644 )
1. If a facilitator of a refund anticipation loan offers a
customer an opportunity to apply for a refund anticipation loan, the
facilitator shall provide to the customer, before the customer completes
the application process, the following disclosures:
(a) The refund anticipation loan fee schedule used by the
facilitator; and
(b) A written statement or, if the transaction is conducted using
electronic commerce, an electronic statement, in at least 10-point type,
containing the following information:
(1) A disclosure that the refund anticipation loan is a loan
which creates a legally enforceable debt and that the loan is not the
customer’s actual tax refund;
(2) A disclosure that the customer may file a tax return
electronically without applying for the refund anticipation loan;
(3) A disclosure of the average times, according to the
Internal Revenue Service, within which a person who does not obtain a
refund anticipation loan can expect to receive a tax refund if the person:
(I) Files a tax return electronically and the person’s
tax refund is directly deposited to the person’s account or mailed to the
person; or
(II) Mails a tax return to the Internal Revenue
Service and the person’s tax refund is directly deposited to the person’s
account or mailed to the person;
(4) A disclosure that the Internal Revenue Service does not
guarantee that a person will be paid the full amount of an anticipated
tax refund and does not guarantee that an anticipated tax refund will be
deposited into a person’s account or mailed to a person on a specific
date;
(5) A disclosure that the customer is responsible for
repayment of the refund anticipation loan and related fees and charges if
the anticipated tax refund is not paid or paid in full;
(6) A disclosure of the estimated time within which the
proceeds of the refund anticipation loan will be paid to the customer if
the loan is approved; and
(7) A disclosure of the fee or charge that will be imposed,
if any, if the refund anticipation loan is not approved.
2. In addition to the disclosures required pursuant to subsection
1, the facilitator shall provide to the customer, before the loan
transaction is completed, the following additional disclosures:
(a) The estimated total fees and charges for obtaining the refund
anticipation loan; and
(b) The estimated annual percentage rate for the refund
anticipation loan calculated under the guidelines established by the
Truth in Lending Act and Regulation Z.
(Added to NRS by 2005, 1644 )
A facilitator
of a refund anticipation loan shall not:
1. Misrepresent a material factor or condition of a refund
anticipation loan;
2. Fail to process the application for a refund anticipation loan
promptly after the customer applies for the loan;
3. Engage in any dishonest, fraudulent, unfair, unconscionable or
unethical practice or conduct in connection with a refund anticipation
loan;
4. Arrange for a lender to take a security interest in any
property of the customer, other than the proceeds of the customer’s tax
refund and the account into which that tax refund is deposited, to secure
payment of the loan; or
5. Offer a refund anticipation loan to a customer in an amount
that, when added to the refund anticipation loan fees and any other fees
or charges related to the loan or the preparation of the tax return,
exceeds the amount of the customer’s anticipated tax refund.
(Added to NRS by 2005, 1645 )
REMEDIES AND PENALTIES
Any person who knowingly and willfully
violates any provision of this chapter is guilty of a misdemeanor and
shall be punished by a fine of not more than $500 for each violation.
(Added to NRS by 2005, 1645 )
1. The remedies, penalties, duties and prohibitions set forth in
this chapter are not exclusive and are in addition to any other remedies,
penalties, duties and prohibitions provided by law.
2. Any violation of this chapter constitutes a deceptive trade
practice for the purposes of the civil and administrative remedies and
penalties set forth in NRS 598.0903 to
598.0999 , inclusive.
(Added to NRS by 2005, 1645 )
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