CHAPTER 649 - Part 4 - FEES NRS 649.295 Amounts; deposit.
  1. A nonrefundable fee of $250 for the application and survey must accompany each new application for a license as a collection agency. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
  2. A fee of not less than $100 nor more than $300, prorated on the basis of the licensing year as provided by the Commissioner, must be charged for each original license issued. A fee of $200 must be charged for each annual renewal of a license.
  3. A fee of $10 must be charged for each duplicate license or license for a transfer of location issued.
  4. A nonrefundable investigation fee of $75 must accompany each application for a manager’s certificate unless the applicant is the holder of or an applicant for a license as a collection agency.
  5. A fee of $20 must be charged for each manager’s certificate issued and for each annual renewal of such a certificate.
  6. A fee of $30 must be charged for the reinstatement of a manager’s certificate.
  7. A fee of $5 must be charged for each day an application for the renewal of a license or certificate, or a required report, is filed late, unless the fee or portion thereof is excused by the Commissioner for good cause shown.
  8. A nonrefundable fee of $125 for the application and an examination must accompany each application for a permit to operate a branch office of a licensed collection agency. A fee of $100 must be charged for each annual renewal of such a permit.
  9. For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and preparing and typing the report of the examination at the rate established pursuant to NRS 658.101. Failure to pay the fee within 30 days after receipt of the bill is a ground for revoking the collection agency’s license.
  10. Except as otherwise provided in subsection 1, all money received by the Commissioner pursuant to this chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[6:237:1931; 1931 NCL § 1420.05]-(NRS A 1959, 827; 1967, 956; 1969, 837; 1979, 954; 1981, 756; 1983, 1320, 1717; 1987, 1508, 1893, 2225; 1991, 1804; 2003, 3231)

NRS 649.300 Payment of assessment; cooperation with audits and examinations. Each collection agency shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with the audits and examinations performed pursuant thereto.
(Added to NRS by 1987, 827)

CONDUCT OF BUSINESS; PROHIBITED PRACTICES

NRS 649.305 Collection agency not to operate without manager. No collection agency may operate its business without a manager who holds a valid manager’s certificate issued under the provisions of this chapter.
(Added to NRS by 1969, 830; A 1983, 1717)

NRS 649.315 Display of license or certificate. Each license and certificate issued under this chapter must be framed in a suitable frame under glass and hung in a conspicuous place upon the walls of the place of business designated in the license or certificate.
[Part 8:237:1931; 1931 NCL § 1420.07]-(NRS A 1969, 838)-(Substituted in revision for NRS 649.120)

NRS 649.325 Change of location of business.
  1. A collection agency shall not remove its business location from the place of business as stated in the license except upon prior approval by the Commissioner in writing.
  2. If the removal is approved, the Commissioner shall note the change upon the face of the license and enter in his records a notation of that change.
[7:237:1931; 1931 NCL § 1420.06]-(NRS A 1959, 827; 1969, 838; 1983, 1717; 1987, 1893; 1995, 1002)

NRS 649.330 Notification of change in management or ownership of voting stock; application for licensure of replacement; investigation; costs; waiver.
  1. A collection agency shall immediately notify the Commissioner of any change:
    1. Of the manager of the agency; or
    2. If the agency is a corporation, in the ownership of 5 percent or more of its outstanding voting stock.
  2. An application must be submitted to the Commissioner, pursuant to NRS 649.095, by:
    1. The person who replaces the manager; and
    2. A person who acquires:
      1. At least 25 percent of the outstanding voting stock of an agency; or
      2. Any outstanding voting stock of an agency if the change will result in a change in the control of the agency.
      3. Ê Except as otherwise provided in subsection 4, the Commissioner shall conduct an investigation to determine whether the applicant has the competence, experience, character and qualifications necessary for the licensing of a collection agency. If the Commissioner denies the application, he may in his order forbid the applicant from participating in the business of the collection agency.
    3. The collection agency with which the applicant is affiliated shall pay such expenses incurred in the investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
    4. A collection agency may submit a written request to the Commissioner to waive an investigation pursuant to subsection 2. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his employment with a financial institution.
(Added to NRS by 1985, 1344; A 1987, 1894; 1991, 1805)

NRS 649.334 Written agreement to be specific, intelligible and unambiguous; money collected to be credited first to principal; partial collection of claim prohibited; accounting of money collected on behalf of customer.
  1. The terms and conditions of any written agreement between a collection agency and a customer must be specific, intelligible and unambiguous. In the absence of a written agreement, unless the conduct of the parties indicates a different mutual understanding, the understanding of the customer concerning the terms of the agreement must govern in any dispute between the customer and the collection agency.
  2. Unless a written agreement between the parties otherwise provides, any money collected on a claim, after court costs have been recovered, must first be credited to the principal amount of the claim. Any interest charged and collected on the claim must be allocated pursuant to the agreement between the customer and the collection agency.
  3. Except with the consent of its customer, a collection agency shall not accept less than the full amount of a claim in settlement of an assigned claim.
  4. A collection agency shall, at the time it remits to the customer the money it collected on behalf of the customer, give each customer an accounting in writing of the money it collected on behalf of the customer in connection with a claim.
(Added to NRS by 1989, 2034)

NRS 649.3345 Withdrawal of claim by customer.
  1. Unless a written agreement between the parties otherwise provides, a customer may withdraw, without obligation, any claim assigned to a collection agency at any time 6 months after the date of the assignment if:
    1. The customer gives written notice of the withdrawal to the collection agency not less than 60 days before the effective date of the withdrawal; and
    2. The claim is not in the process of being collected.
  2. As used in this section, "in the process of being collected," means that:
    1. A payment on the claim has been received after the date of the assignment;
    2. An action on the claim has been filed by or on behalf of the collection agency;
    3. The claim has been forwarded to another collection agency for collection;
    4. A lawful and sufficient claim or notice of lien has been filed by the collection agency on behalf of the customer to ensure payment from money distributed in connection with the probate of an estate, proceeding in bankruptcy, assignment for the benefit of creditors or any similar proceeding; or
    5. The collection agency has obtained from the debtor an enforceable written promise to make payment.
  3. Upon the withdrawal of any claim, the collection agency shall return to the customer any documents, records or other items relating to the claim that have been supplied by him.
(Added to NRS by 1989, 2034)

NRS 649.335 Retention and examinations of records and accounts.
  1. Every collection agency shall keep all records concerning each of its accounts for at least 6 years following the completion of the last transaction concerning the account.
  2. The Commissioner shall conduct an examination of the trust accounts and the records relating to debtors and customers of each collection agency licensed pursuant to this chapter at least once each year.
  3. If there is evidence that a collection agency is not complying with the provisions of this chapter, the Commissioner may conduct an additional examination to determine whether a violation has occurred.
  4. During the first year a collection agency is licensed, the Commissioner may conduct as many examinations as he deems necessary to ensure compliance with the provisions of this chapter.
(Added to NRS by 1969, 834; A 1983, 1718; 1987, 1894; 1989, 2035)

NRS 649.345 Annual reports to Commissioner.
  1. Each licensed collection agency shall file with the Commissioner a written report, signed and sworn to by its manager, no later than January 31 of each year, unless the Commissioner determines that there is good cause for later filing of the report. The report must include:
    1. The total sum of money due to all creditors as of the close of the last business day of the preceding month.
    2. The total sum on deposit in customer trust fund accounts and available for immediate distribution as of the close of the last business day of the preceding month, the title of the trust account or accounts, and the name of the banks or credit unions where the money is deposited.
    3. The total amount of creditors’ or forwarders’ share of money collected more than 60 days before the last business day of the preceding month and not remitted by that date.
    4. When the total sum under paragraph (c) exceeds $10, the name of each creditor or forwarder and the respective share of each in that sum.
    5. Such other information, audit or reports as the Commissioner may require.
  2. The filing of any report required by this section which is known by the collection agency to contain false information or statements constitutes grounds for the suspension of the agency’s license or the manager’s certificate, or both.
(Added to NRS by 1969, 834; A 1981, 756; 1983, 1718; 1987, 1894; 1989, 921; 1999, 1540)

NRS 649.355 Business ethics and practices; trust accounts.
  1. Every collection agency and collection agent shall openly, fairly and honestly conduct the collection agency business and shall at all times conform to the accepted business ethics and practices of the collection agency business.
  2. Every licensee shall at all times maintain a separate account in a bank or credit union in which must be deposited all money collected. Except as otherwise provided in regulations adopted by the Commissioner pursuant to NRS 649.054, the account must be maintained in a bank or credit union located in this state and bear some title sufficient to distinguish it from the licensee’s personal or general checking account and to designate it as a trust account, such as "customer’s trust fund account." The trust account must at all times contain sufficient money to pay all money due or owing to all customers, and no disbursement may be made from the account except to customers or to pay costs advanced for those customers, except that a licensee may periodically withdraw from the account such money as may accrue to the licensee from collections deposited or from adjustments resulting from costs advanced and payments made directly to customers.
  3. Every licensee maintaining a separate custodial or trust account shall keep a record of all money deposited in the account, which must indicate clearly the date and from whom the money was received, the date deposited, the dates of withdrawals and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. The money must be remitted to the creditors respectively entitled thereto within 30 days following the end of the month in which payment is received. The records and money are subject to inspection by the Commissioner or his authorized representative. The records must be maintained at the premises in this state at which the licensee is authorized to conduct business.
  4. If the Commissioner finds that a licensee’s records are not maintained pursuant to subsections 2 and 3, he may require the licensee to deliver an audited financial statement prepared from his records by a certified public accountant who holds a certificate to engage in the practice of public accounting in this state. The statement must be submitted within 60 days after the Commissioner requests it. The Commissioner may grant a reasonable extension for the submission of the financial statement if an extension is requested before the statement is due.
(Added to NRS by 1963, 1141; A 1967, 956; 1969, 840; 1983, 1718; 1987, 1509, 1895; 1993, 2416; 1999, 1541)

NRS 649.365 Use of certain names and terms prohibited. A collection agency licensed under this chapter shall not:
  1. Operate under a business name which is identical or similar to that of another collection agency licensed under this chapter.
  2. Use any name or printed forms which may mislead or confuse the public.
  3. Use the term "credit bureau" in its name unless it operates a bona fide credit bureau in conjunction with its collection agency business. For purposes of this subsection "credit bureau” means any person engaged in gathering, recording and disseminating information relative to the creditworthiness, financial responsibility, paying habits or character of persons being considered for credit extension, for prospective creditors.
(Added to NRS by 1969, 833)

NRS 649.375 Prohibited practices. A collection agency, or its manager, agents or employees, shall not:
  1. Use any device, subterfuge, pretense or deceptive means or representations to collect any debt, nor use any collection letter, demand or notice which simulates a legal process or purports to be from any local, city, county, state or government authority or attorney.
  2. Collect or attempt to collect any interest, charge, fee or expense incidental to the principal obligation unless:
    1. Any such interest, charge, fee or expense as authorized by law or as agreed to by the parties has been added to the principal of the debt by the creditor before receipt of the item of collection;
    2. Any such interest, charge, fee or expense as authorized by law or as agreed to by the parties has been added to the principal of the debt by the collection agency and described as such in the first written communication with the debtor; or
    3. The interest, charge, fee or expense has been judicially determined as proper and legally due from and chargeable against the debtor.
  3. Assign or transfer any claim or account upon termination or abandonment of its collection business unless prior written consent by the customer is given for the assignment or transfer. The written consent must contain an agreement with the customer as to all terms and conditions of the assignment or transfer, including the name and address of the intended assignee. Prior written consent of the Commissioner must also be obtained for any bulk assignment or transfer of claims or accounts, and any assignment or transfer may be regulated and made subject to such limitations or conditions as the Commissioner by regulation may reasonably prescribe.
  4. Operate its business or solicit claims for collection from any location, address or post office box other than that listed on its license or as may be prescribed by the Commissioner.
  5. Harass a debtor’s employer in collecting or attempting to collect a claim, nor engage in any conduct that constitutes harassment as defined by regulations adopted by the Commissioner.
  6. Advertise for sale or threaten to advertise for sale any claim as a means to enforce payment of the claim, unless acting under court order.
  7. Publish or post, or cause to be published or posted, any list of debtors except for the benefit of its stockholders or membership in relation to its internal affairs.
  8. Conduct or operate, in conjunction with its collection agency business, a debt counseling or prorater service for a debtor who has incurred a debt primarily for personal, family or household purposes whereby the debtor assigns or turns over to the counselor or prorater any of his earnings or other money for apportionment and payment of his debts or obligations. This section does not prohibit the conjunctive operation of a business of commercial debt adjustment with a collection agency if the business deals exclusively with the collection of commercial debt.
(Added to NRS by 1969, 833; A 1983, 1719; 1987, 1896; 1989, 1448; 1993, 2417)

DISCIPLINARY ACTION

NRS 649.385 Investigation of verified complaint; verified answer; action by Commissioner after informal hearing.
  1. Upon the filing with the Commissioner of a verified complaint against any collection agency or manager, the Commissioner shall investigate the alleged violation of the provisions of this chapter.
  2. If the Commissioner determines that the complaint warrants further action, he shall send a copy of the complaint and notice of the date set for an informal hearing to the accused and the Attorney General.
  3. The Commissioner may require the accused collection agency or manager to file a verified answer to the complaint within 10 days after service unless, for good cause shown, the Commissioner extends the time for a period not to exceed 60 days.
  4. If at the hearing the complaint is not explained to the satisfaction of the Commissioner, he may take such action against the accused as may be authorized by the provisions of this chapter.
[Part 11:237:1931; 1931 NCL § 1420.10]-(NRS A 1959, 827; 1969, 839; 1983, 1720; 1985, 315; 1987, 1897; 1993, 2418)

NRS 649.390 Investigation of verified complaint concerning unlicensed person; order to cease and desist; administrative fines; suit to recover fine; cumulative penalties.
  1. The Commissioner shall conduct an investigation if he receives a verified complaint from any person that sets forth reason to believe that an unlicensed person is engaging in an activity for which a license is required pursuant to this chapter.
  2. If the Commissioner determines that an unlicensed person is engaging in an activity for which a license is required pursuant to this chapter, the Commissioner shall issue and serve on the person an order to cease and desist from engaging in the activity until such time as the person obtains a license from the Commissioner.
  3. If a person upon whom an order to cease and desist is served does not comply with the order within 30 days after service, the Commissioner shall, after notice and opportunity for a hearing:
    1. Impose upon the person an administrative fine of $10,000; or
    2. Enter into a written consent agreement with the person pursuant to which the person agrees to cease and desist from all unlicensed activity in this state relating to the collection of debts, and impose upon the person an administrative fine of not less than $5,000 and not more than $10,000.
    3. Ê The imposition of an administrative fine pursuant to this subsection is a final decision for the purposes of judicial review.
  4. 4. The Commissioner shall bring suit in the name and on behalf of the State of Nevada against a person upon whom an administrative fine is imposed pursuant to subsection 3 to recover the amount of the administrative fine:
    1. If no petition for judicial review is filed pursuant to NRS 233B.130 and the fine remains unpaid for more than 90 days after notice of the imposition of the fine; or
    2. If a petition for judicial review is filed pursuant to NRS 233B.130 and the fine remains unpaid for more than 90 days after exhaustion of any right of appeal in the courts of this state resulting in a final determination that upholds the imposition of the fine.
  5. A person’s liability for an administrative fine is in addition to any other penalty provided in this chapter.
(Added to NRS by 2001, 519)

NRS 649.395 Authorized disciplinary action; grounds for disciplinary action; effect of revocation of license; orders imposing discipline deemed public records.
  1. The Commissioner may impose an administrative fine, not to exceed $500 for each violation, or suspend or revoke the license of a collection agency, or both impose a fine and suspend or revoke the license, by an order made in writing and filed in his office and served on the licensee by registered or certified mail at the address shown in the records of the Commissioner, if:
    1. The licensee is adjudged liable in any court of law for breach of any bond given under the provisions of this chapter;
    2. After notice and hearing, the licensee is found guilty of:
      1. Fraud or misrepresentation;
      2. An act or omission inconsistent with the faithful discharge of his duties and obligations; or
      3. A violation of any provision of this chapter; or
    3. The Commissioner determines that the licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS.
  2. The Commissioner may suspend or revoke the license of a collection agency without notice and hearing if:
    1. The suspension or revocation is necessary for the immediate protection of the public; and
    2. The licensee is afforded a hearing to contest the suspension or revocation within 20 days after the written order of suspension or revocation is served upon the licensee.
  3. Upon revocation of his license, all rights of the licensee under this chapter terminate, and no application may be received from any person whose license has once been revoked.
  4. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
[Part 11:237:1931; 1931 NCL § 1420.10]-(NRS A 1959, 828; 1969, 95, 839; 1983, 1720; 1987, 1510, 1897; 1993, 2418; 2003, 3475; 2003, 20th Special Session, 224)

NRS 649.398 Suspension of license or manager’s certificate for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license or manager’s certificate. [Expires by limitation on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]
  1. If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a collection agent or agency or a manager’s certificate, the Commissioner shall deem the license or certificate issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license or certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license or certificate has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
  2. The Commissioner shall reinstate a license as a collection agent or agency or a manager’s certificate that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license or certificate was suspended stating that the person whose license or certificate was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
(Added to NRS by 1997, 2178)

NRS 649.400 Injunctive relief.
  1. If upon investigation it appears that a collection agency is conducting its business in violation of this chapter or the regulations adopted by the Commissioner, or when it appears that any person is engaging in the business of a collection agency without being licensed under the provisions of this chapter, the Commissioner may:
    1. Advise the district attorney of the county in which the business is conducted, and the district attorney shall cause the appropriate legal action to be taken to enjoin the operation of the business or prosecute the violations of this chapter; or
    2. Bring suit in the name and on behalf of the State of Nevada against such a person and any other person concerned in or in any way participating in or about to participate in such unsafe or injurious practices or action in violation of this chapter or the regulations adopted by the Commissioner to enjoin any such person from continuing or engaging in such practices or doing any such act.
  2. If the Commissioner brings suit, the district court of any judicial district may grant injunctions to prevent and restrain such practices or transactions. The court may, during the pendency of the proceedings before it, issue such temporary restraining orders as may appear to be just and proper. The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the issue ex parte of a temporary restraining order. In any such proceedings the Commissioner may apply for and on due showing is entitled to have issued the court’s subpoena requiring forthwith the appearance of any defendant and his employees and the production of such documents, books and records as appear necessary for the hearing of the petition, to testify and give evidence concerning the acts or conduct or things complained of in the application for an injunction.
(Added to NRS by 1987, 1507)

PENALTIES

NRS 649.435 Violation of chapter; each day of unlawful operation constitutes separate offense. Any person who violates any provision of this chapter is guilty of a gross misdemeanor. Each day a person operates a collection agency in violation of the provisions of this chapter is a separate violation under this section.
[13:237:1931; 1931 NCL § 1420.12]-(NRS A 1959, 828; 1969, 841; 2001, 520)
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