State, Department of Business & Industry v. TitleMax of Nevada, Inc.

The Supreme Court affirmed in part and reversed in part the judgment of the district court granting summary judgment in favor of TitleMax of Nevada, Inc. and declaring that TitleMax's practice of "refinancing" did not violate either Nev. Rev. Stat. 604A.5074 or Nev. Rev. Stat. 604A.065, holding that the court erred in part.

In 2018, the Nevada Department of Business and Industry, Financial Institutions Division (FID) issued several Records of Examination stating that TitleMax's "refinances" were actually "extensions" that violated the extension provision in section 604A.5074(3)(c) and that TitleMax had underwritten loans that exceeded the fair market value of the securing vehicle. TitleMax sued, asking the district court to declare that refinancing a title loan does not amount to a prohibited extension. The district court granted summary judgment for TitleMax. The Supreme Court reversed in part, holding (1) the extension prohibition on 210-day title loans includes refinances as a species of extension based on the plain language of section 604A.065; and (2) section 604A.5076(1) refers only to the principal amount of the loan.