2005 Nevada Revised Statutes - Chapter 649 — Collection Agencies

CHAPTER 649 - COLLECTION AGENCIES

GENERAL PROVISIONS

NRS 649.005 Definitions.

NRS 649.010 Claimdefined.

NRS 649.020 Collectionagency defined.

NRS 649.025 Collectionagent defined.

NRS 649.026 Commissionerdefined.

NRS 649.030 Customerdefined.

NRS 649.035 Managerdefined.

NRS 649.045 Legislativefinding and declaration.

COLLECTION AGENCY ADVISORY BOARD

NRS 649.047 Creation;members; terms and compensation of members; Chairman; quorum; meetings.

NRS 649.049 Powersof Board.

ADMINISTRATION

NRS 649.051 Administrationand enforcement of chapter.

NRS 649.053 Regulations.

NRS 649.054 Regulationsauthorizing collection from location outside of Nevada; standards for trustaccounts.

NRS 649.056 Regulationsprescribing methods of conducting business; investigations and examinations.

NRS 649.057 Investigationsand hearings.

NRS 649.059 Approvalof printed forms.

NRS 649.061 Notificationof results of examination; retention and destruction of papers.

NRS 649.065 Records:Maintenance by Commissioner; contents; general provisions governingconfidentiality and public inspection.

NRS 649.067 Records:Certain records relating to investigation deemed confidential; certain recordsrelating to disciplinary action deemed public records.

LICENSING OF COLLECTION AGENCIES AND COLLECTION AGENTS

NRS 649.075 Licenserequired; exceptions.

NRS 649.085 Qualificationsof applicant for license.

NRS 649.095 Applicationfor license: Contents; submission of fingerprints and financial statement;examination of applicant; withdrawal of application.

NRS 649.105 Bondor substitute security required; amount and conditions; adjustments in amount.

NRS 649.115 Formof bond; matters covered by bond; statute of limitations for bringing action onbond.

NRS 649.119 Depositas substitute for bond.

NRS 649.125 Investigationby Commissioner.

NRS 649.135 Orderapproving application; findings.

NRS 649.145 Conditionsfor issuance of license; contents of license.

NRS 649.155 Orderdenying application; notice of denial.

NRS 649.165 Rightsof licensee.

NRS 649.167 Permitfor branch office; examination of principal office; manager required onpremises.

FOREIGN COLLECTION AGENCIES

NRS 649.171 Certificateof registration; limitations on business practices; fees; disciplinary action;regulations.

MANAGERS

NRS 649.175 Managerscertificate required.

NRS 649.185 Applicationto Commissioner.

NRS 649.196 Applicantfor certificate: Qualifications; requirements; notice of refusal to issuecertificate; request for hearing; withdrawal of application.

NRS 649.205 Examination.

NRS 649.215 Groundsfor refusing examination or suspending or revoking certificate.

NRS 649.225 Issuanceof certificate; notice of managers change of residence address.

MISCELLANEOUS PROVISIONS

NRS 649.233 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license or managers certificate; duty of Commissioner. [Effectiveuntil the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

NRS 649.233 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license or managers certificate; duty of Commissioner. [Effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings and expires by limitation 2 years after that date.]

NRS 649.235 Expiration;licenses and certificates not transferable.

NRS 649.245 Renewal.

FEES

NRS 649.295 Amounts;deposit.

NRS 649.297 Feefor failure to submit reports.

NRS 649.300 Paymentof assessment; cooperation with audits and examinations.

CONDUCT OF BUSINESS; PROHIBITED PRACTICES

NRS 649.305 Collectionagency not to operate without manager.

NRS 649.315 Displayof license or certificate.

NRS 649.325 Changeof location of business.

NRS 649.330 Notificationof change in management or ownership of voting stock; application for licensureof replacement; investigation; costs; waiver.

NRS 649.334 Writtenagreement to be specific, intelligible and unambiguous; money collected to becredited first to principal; partial collection of claim prohibited; accountingof money collected on behalf of customer.

NRS 649.3345 Withdrawalof claim by customer.

NRS 649.335 Retentionand examinations of records and accounts.

NRS 649.345 Annualreports to Commissioner.

NRS 649.355 Businessethics and practices; trust accounts.

NRS 649.365 Approvalof business name required; prohibition against use of certain names, terms andforms.

NRS 649.375 Prohibitedpractices.

DISCIPLINARY ACTION

NRS 649.385 Investigationof verified complaint; verified answer; action by Commissioner after informalhearing.

NRS 649.390 Investigationof verified complaint concerning unlicensed person; order to cease and desist;administrative fines; suit to recover fine; cumulative penalties.

NRS 649.395 Authorizeddisciplinary action; grounds for disciplinary action; effect of revocation oflicense; orders imposing discipline deemed public records.

NRS 649.398 Suspensionof license or managers certificate for failure to pay child support or complywith certain subpoenas or warrants; reinstatement of license or managerscertificate. [Expires by limitation 2 years after the date of the repeal of thefederal law requiring each state to establish procedures for withholding, suspendingand restricting the professional, occupational and recreational licenses forchild support arrearages and for noncompliance with certain processes relatingto paternity or child support proceedings.]

NRS 649.400 Injunctiverelief.

PENALTIES

NRS 649.435 Criminalpenalty for violations; each day of unlawful operation constitutes separateoffense.

NRS 649.440 Administrativefine for violations.

_________

 

GENERAL PROVISIONS

NRS 649.005 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS649.010 to 649.035, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1969, 829; A 1983, 1710; 1985, 536)

NRS 649.010 Claimdefined. Claim means any obligation for thepayment of money or its equivalent that is past due.

[Part 2:237:1931; 1931 NCL 1420.01](NRS A 1969,835; 1995, 999)

NRS 649.020 Collectionagency defined.

1. Collection agency means all persons engaging,directly or indirectly, and as a primary or a secondary object, business orpursuit, in the collection of or in soliciting or obtaining in any manner thepayment of a claim owed or due or asserted to be owed or due to another.

2. Collection agency does not include any of thefollowing unless they are conducting collection agencies:

(a) Individuals regularly employed on a regular wage orsalary, in the capacity of credit men or in other similar capacity upon thestaff of employees of any person not engaged in the business of a collectionagency or making or attempting to make collections as an incident to the usualpractices of their primary business or profession.

(b) Banks.

(c) Nonprofit cooperative associations.

(d) Unit-owners associations and the board members,officers, employees and units owners of those associations when acting underthe authority of and in accordance with chapter116 of NRS and the governing documents of the association, except for thosecommunity managers included within the term collection agency pursuant tosubsection 3.

(e) Abstract companies doing an escrow business.

(f) Duly licensed real estate brokers, except for thosereal estate brokers who are community managers included within the termcollection agency pursuant to subsection 3.

(g) Attorneys and counselors at law licensed topractice in this State, so long as they are retained by their clients tocollect or to solicit or obtain payment of such clients claims in the usualcourse of the practice of their profession and the collection, solicitation orobtainment is incidental to the usual course of the practice of theirprofession.

3. Collection agency:

(a) Includes a community manager while engaged in themanagement of a common-interest community if the community manager, or anyemployee, agent or affiliate of the community manager, performs or offers toperform any act associated with the foreclosure of a lien pursuant to NRS 116.31162 to 116.31168, inclusive; and

(b) Does not include any other community manager whileengaged in the management of a common-interest community.

4. As used in this section:

(a) Community manager has the meaning ascribed to itin NRS 116.023.

(b) Unit-owners association has the meaning ascribedto it in NRS 116.011.

[Part 2:237:1931; 1931 NCL 1420.01] + [14:237:1931;1931 NCL 1420.13](NRS A 1969, 835; 2005, 1716, 1867)

NRS 649.025 Collectionagent defined. Collection agent means anyperson, whether or not regularly employed at a regular wage or salary, who inthe capacity of a credit man or in any other similar capacity makes acollection, solicitation or investigation of a claim at a place or locationother than the business premises of the collection agency, but does notinclude:

1. Employees of a collection agency whose activitiesand duties are restricted to the business premises of the collection agency.

2. The individuals, corporations and associationsenumerated in subsection 2 of NRS 649.020.

(Added to NRS by 1963, 1141; A 1969, 835)

NRS 649.026 Commissionerdefined. Commissioner means the Commissionerof Financial Institutions.

(Added to NRS by 1983, 1710; A 1987,1887)(Substituted in revision for NRS 649.007)

NRS 649.030 Customerdefined. Customer means any person authorizingor employing a collection agency for any of the purposes permitted orauthorized by this chapter.

[Part 2:237:1931; 1931 NCL 1420.01](NRS A 1969,835)

NRS 649.035 Managerdefined. Manager means a person who:

1. Holds a managers certificate;

2. Is designated as the manager of a collection agency;

3. Shares equally with the holder of a license toconduct a collection agency the responsibility for the operation of thecollection agency; and

4. Devotes a majority of the hours he works as anemployee of the agency to the actual management, operation and administrationof that collection agency.

(Added to NRS by 1969, 829; A 1989, 2035)

NRS 649.045 Legislativefinding and declaration. The Legislature findsand declares that:

1. There exists in this State a need for morestringent regulatory control over collection agencies to ensure that they arecomposed only of responsible and well qualified personnel.

2. It is the purpose of this chapter to:

(a) Bring licensed collection agencies and theirpersonnel under more stringent public supervision;

(b) Establish a system of regulation to ensure thatpersons using the services of a collection agency are properly represented; and

(c) Discourage improper and abusive collection methods.

(Added to NRS by 1969, 830; A 1995, 999)

COLLECTION AGENCY ADVISORY BOARD

NRS 649.047 Creation;members; terms and compensation of members; Chairman; quorum; meetings.

1. The Collection Agency Advisory Board, consisting offive members appointed by the Governor, is hereby created. The membersappointed must be residents of this State and represent collection agencies.

2. After the initial terms, each member of the Boardserves a term of 4 years. No member may serve more than two consecutive terms.

3. The Governor shall designate the Chairman of theBoard from its members.

4. Three members of the Board constitute a quorum, anda quorum may exercise all the powers conferred on the Board.

5. The Board shall meet regularly at leastsemiannually and may meet at other times upon the call of the Chairman. Whilehe is engaged in the business of the board, each member is entitled to the perdiem allowance and travel expenses provided for state officers and employeesgenerally.

(Added to NRS by 1989, 2034; A 1991, 2211)

NRS 649.049 Powersof Board. The Collection Agency Advisory Boardmay make recommendations to the Legislature concerning the enactment of any legislationit deems necessary or appropriate relating to collection agencies.

(Added to NRS by 1989, 2034; A 1997, 1622)

ADMINISTRATION

NRS 649.051 Administrationand enforcement of chapter. The Commissionershall administer and enforce the provisions of this chapter, subject to the administrativesupervision of the Director of the Department of Business and Industry.

(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887;1993, 1894)

NRS 649.053 Regulations. The Commissioner shall adopt such regulations as may benecessary to carry out the provisions of this chapter.

(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887;1995, 999)

NRS 649.054 Regulationsauthorizing collection from location outside of Nevada; standards for trustaccounts. The Commissioner may adoptregulations authorizing collection agencies licensed in this State to collectfrom a location outside of this State debts due or asserted to be due anotherperson in this State. The Commissioner may, by regulation, establish standardsfor the establishment and maintenance of trust accounts to be used bycollection agencies collecting debts pursuant to this section.

(Added to NRS by 1991, 2211; A 1993, 2415)

NRS 649.056 Regulationsprescribing methods of conducting business; investigations and examinations. The Commissioner may:

1. By regulation prescribe for collection agencies themethod and manner of:

(a) Keeping records.

(b) Preparing and filing financial and other reports.

(c) Handling trust funds and accounts.

(d) The transfer or assignment of accounts and otheragreements.

(e) Using fair practices for the solicitation ofbusiness and collection of accounts.

(f) The operation of such other phases of the businessas may be necessary to promote the best interests of the industry and thepublic.

2. Conduct such investigations or examinations ofcollection agencies, their personnel, activities, books, records and othermatters as may be necessary to ensure compliance with the purposes andprovisions of this chapter.

(Added to NRS by 1969, 830; A 1983, 1710; 1987, 1887)

NRS 649.057 Investigationsand hearings. In the conduct of any investigationor hearing, the Commissioner may:

1. Compel the attendance of any person by subpoena.

2. Administer oaths.

3. Examine any person under oath concerning thebusiness and conduct of affairs of any person subject to the provisions of thischapter and in connection therewith require the production of any books,records or papers relevant to the inquiry.

(Added to NRS by 1987, 1507)

NRS 649.059 Approvalof printed forms. The Commissioner may requirecollection agencies to submit any printed form of agreements, listing sheets, acknowledgments,communications or other documents used in its business for his approval ordisapproval.

(Added to NRS by 1969, 830; A 1983, 1711; 1987, 1888)

NRS 649.061 Notificationof results of examination; retention and destruction of papers.

1. The Commissioner shall notify all applicants forlicensure or certification of the results of any examination taken under thischapter, by certified mail, as soon as the results are available.

2. All examination papers must be kept on file in theOffice of the Commissioner for at least 1 year, after which they may bedestroyed.

(Added to NRS by 1969, 833; A 1983, 1711; 1985, 314;1987, 1888)

NRS 649.065 Records:Maintenance by Commissioner; contents; general provisions governingconfidentiality and public inspection.

1. The Commissioner shall keep in his office, in asuitable record provided for the purpose, all applications for certificates,licenses and all bonds required to be filed under this chapter. The record muststate the date of issuance or denial of the license or certificate and the dateand nature of any action taken against any of them.

2. All licenses and certificates issued must besufficiently identified in the record.

3. All renewals must be recorded in the same manner asoriginals, except that, in addition, the number of the preceding license orcertificate issued must be recorded.

4. Except for confidential information containedtherein, the record must be open for inspection as a public record in theOffice of the Commissioner.

[12:237:1931; 1931 NCL 1420.11](NRS A 1959, 828;1969, 841; 1983, 1711; 1985, 314, 376; 1987, 1888)

NRS 649.067 Records:Certain records relating to investigation deemed confidential; certain recordsrelating to disciplinary action deemed public records.

1. Except as otherwise provided in this section, acomplaint filed with the Commissioner, all documents and other informationfiled with the complaint and all documents and other information compiled as aresult of an investigation conducted to determine whether to initiatedisciplinary action are confidential.

2. The complaint or other document filed by theCommissioner to initiate disciplinary action and all documents and informationconsidered by the Commissioner when determining whether to impose disciplineare public records.

(Added to NRS by 2003, 3475)

LICENSING OF COLLECTION AGENCIES AND COLLECTION AGENTS

NRS 649.075 Licenserequired; exceptions.

1. Except as otherwise provided in this section, aperson shall not conduct within this State a collection agency or engage withinthis State in the business of collecting claims for others, or of solicitingthe right to collect or receive payment for another of any claim, or advertise,or solicit, either in print, by letter, in person or otherwise, the right tocollect or receive payment for another of any claim, or seek to make collectionor obtain payment of any claim on behalf of another without having firstapplied for and obtained a license from the Commissioner.

2. A person is not required to obtain a license if:

(a) The collection agency he works for is locatedoutside of this State;

(b) His activities in this State are limited to thecollection of claims from residents of this State on behalf of residents of anotherstate; and

(c) His contact with persons in this State is limitedto interstate communications by telephone, mail or facsimile.

3. A person is not required to obtain a license if theperson holds a certificate of registration as a foreign collection agencyissued by the Commissioner pursuant to NRS649.171.

[1:237:1931; 1931 NCL 1420](NRS A 1969, 836; 1983,1711; 1987, 1888; 1993, 2415; 2005, 1867)

NRS 649.085 Qualificationsof applicant for license. Every individual applicant,every officer and director of a corporate applicant, and every member of a firmor partnership applicant for a license as a collection agency or collectionagent must submit proof satisfactory to the Commissioner that he:

1. Is a citizen of the United States or lawfullyentitled to remain and work in the United States.

2. Has a good reputation for honesty, trustworthinessand integrity and is competent to transact the business of a collection agencyin a manner which protects the interests of the general public.

3. Has not had a collection agency license suspendedor revoked within the 10 years immediately preceding the date of theapplication.

4. Has not been convicted of, or entered a plea ofnolo contendere to:

(a) A felony relating to the practice of collectionagencies or collection agents; or

(b) Any crime involving fraud, misrepresentation ormoral turpitude.

5. Has not made a false statement of material fact onhis application.

6. Will maintain one or more offices in this State forthe transaction of the business of his collection agency.

7. Has established a plan to ensure that hiscollection agency will provide the services of a collection agency adequatelyand efficiently.

(Added to NRS by 1963, 1141; A 1969, 836; 1975, 1297;1995, 999; 2003, 2731)

NRS 649.095 Applicationfor license: Contents; submission of fingerprints and financial statement;examination of applicant; withdrawal of application.

1. An application for a license must be in writing andfiled with the Commissioner on a form provided for that purpose.

2. The application must state:

(a) The name of the applicant and the name under whichthe applicant does business or expects to do business.

(b) The address of the applicants business andresidence, including street and number.

(c) The character of the business sought to be carriedon.

(d) The locations by street and number where thebusiness will be transacted.

(e) In the case of a firm or partnership, the fullnames and residential addresses of all members or partners and the name andresidential address of the manager.

(f) In the case of a corporation or voluntaryassociation, the name and residential address of each of the directors andofficers and the name and residential address of the manager.

(g) Any other information reasonably related to theapplicants qualifications for the license which the Commissioner determines tobe necessary.

(h) All information required to complete theapplication.

3. In addition to any other requirements, eachapplicant or member, partner, director, officer or manager of an applicantshall submit to the Commissioner a complete set of his fingerprints and writtenpermission authorizing the Division of Financial Institutions of the Departmentof Business and Industry to forward the fingerprints to the Central Repositoryfor Nevada Records of Criminal History for submission to the Federal Bureau ofInvestigation for its report.

4. The application must be subscribed by the applicantand acknowledged.

5. Every applicant may be examined concerning hiscompetency, experience, character and qualifications by the Commissioner or hisauthorized agent, and if the examination reveals that the applicant lacks anyof the required qualifications, issuance of the license must be denied. Everyapplication must have attached to it a financial statement showing the assets,liabilities and net worth of the applicant.

6. The Commissioner shall consider an application tobe withdrawn if the Commissioner has not received all information and feesrequired to complete the application within 6 months after the date theapplication is first submitted to the Commissioner or within such later periodas the Commissioner determines in accordance with any existing policies ofjoint regulatory partners. If an application is deemed to be withdrawn pursuantto this subsection or if an applicant otherwise withdraws an application, theCommissioner may not issue a license to the applicant unless the applicantsubmits a new application and pays any required fees.

[3:237:1931; 1931 NCL 1420.02](NRS A 1959, 826;1963, 1142; 1967, 955; 1969, 836; 1983, 679, 1712; 1987, 1888; 1997, 2178; 2005, 1868, 2794, 2807)

NRS 649.105 Bondor substitute security required; amount and conditions; adjustments in amount.

1. An applicant for a license must file with theCommissioner, concurrently with the application, a bond in the sum of $35,000,or an appropriate substitute pursuant to NRS649.119, which must run to the State of Nevada. The bond must be made andexecuted by the principal and a surety company authorized to write bonds in theState of Nevada.

2. The bonds must be conditioned:

(a) That the principal, who must be the applicant,must, upon demand in writing, pay any customer from whom any claim forcollection is received, the proceeds of the collection, in accordance with theterms of the agreement made between the principal and the customer; and

(b) That the principal must comply with allrequirements of this or any other statute with respect to the duties,obligations and liabilities of collection agencies.

3. Not later than 3 months after the issuance of thelicense and semiannually thereafter, the Commissioner shall determine theappropriate amount of bond or appropriate substitute which must be maintainedby the licensee in accordance with the licensees average monthly balance inthe trust account maintained pursuant to NRS649.355:

 

AMOUNTOF

AVERAGE MONTHLY BALANCE BONDREQUIRED

Less than $100,000............................................................................................ $35,000

$100,000 or more but less than$150,000.......................................................... 40,000

$150,000 or more but less than$200,000.......................................................... 50,000

$200,000 or more.................................................................................................. 60,000

 

[Part 4:237:1931; A 1935, 227; 1931 NCL 1420.03](NRS A 1959, 826; 1981, 1432; 1983, 679, 1712; 1987, 1889; 1989, 518;1995, 1000; 2005,1869)

NRS 649.115 Formof bond; matters covered by bond; statute of limitations for bringing action onbond.

1. The bond must be in a form approved by the Divisionof Financial Institutions of the Department of Business and Industry andconditioned that the applicant conduct his business in accordance with therequirements of this chapter.

2. The bond must cover all matters placed with thelicensee during the term of the license so applied for, or a renewal thereof.

3. No action may be brought upon any bond after theexpiration of 2 years from the revocation or expiration of the license.

4. After the expiration of the period of 2 years, allliability of the surety or sureties upon the bond ceases if no action iscommenced upon the bond before the expiration of the period.

[Part 4:237:1931; A 1935, 227; 1931 NCL 1420.03] +[10:237:1931; 1931 NCL 1420.09](NRS A 1967, 955; 1983, 1713; 1993, 1894)

NRS 649.119 Depositas substitute for bond.

1. An applicant for a license may deposit with anybank or trust company authorized to do business in this State, with thepermission of the Commissioner, as a substitute for the surety bond required byNRS 649.105:

(a) An obligation of a bank, savings and loanassociation, thrift company or credit union licensed to do business in thisState;

(b) Bills, bonds, notes, debentures or otherobligations of the United States or any agency or instrumentality thereof, orguaranteed by the United States; or

(c) Any obligation of this State or any city, county,town, school district or other instrumentality of this State or guaranteed bythis State, in an aggregate amount, based upon principal amount or marketvalue, whichever is lower.

The depositmust be in a form approved by the Commissioner.

2. The obligations of a bank, savings and loanassociation, thrift company or credit union must be held to secure the sameobligation as would the surety bond. With the approval of the Commissioner, thedepositor may substitute other suitable obligations for those deposited whichmust be assigned to the State of Nevada and are negotiable only upon approvalby the Commissioner.

3. Any interest or dividends earned on the depositaccrue to the account of the depositor.

4. The deposit must be an amount at least equal to therequired surety bond and must state that the amount may not be withdrawn exceptby direct and sole order of the Commissioner.

5. An applicant is not relieved of the obligation tofile the required surety bond until the Commissioner has had a reasonableamount of time to verify whether a deposit made pursuant to this sectionqualifies as a substitute for the required surety bond.

(Added to NRS by 1981, 1431; A 1983, 1713; 1987,1889; 2005, 1870)

NRS 649.125 Investigationby Commissioner. Upon receiving an applicationfor a license and bond in proper form along with payment of the required fee,the Commissioner shall investigate all the facts stated in the application andthe requirements of NRS 649.135.

(Added to NRS by 1969, 830; A 1983, 1320, 1714; 1987,1890)

NRS 649.135 Orderapproving application; findings. TheCommissioner shall enter an order approving the application for a license, keepon file his findings of fact pertaining thereto, and permit the applicant totake the required examination, if he finds that the applicant has met all theother requirements of this chapter pertaining to his qualifications andapplication.

(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1890;1995, 1000)

NRS 649.145 Conditionsfor issuance of license; contents of license.

1. If the Commissioner enters an order approving theapplication in accordance with NRS 649.135and the applicant passes the required examination, pays the required licensefee and submits all information required to complete the application, theCommissioner shall grant and issue a license to the applicant.

2. The license, when issued, must state:

(a) The name of the licensee.

(b) The locations by street and number where thelicensee is authorized to carry on business.

(c) The number and the date of the license.

(d) That it is issued pursuant to this chapter, andthat the licensee is authorized under this chapter.

[Part 5:237:1931; 1931 NCL 1420.04](NRS A 1959,826; 1963, 1142; 1969, 837; 1983, 1714; 1987, 1890; 1997, 2179; 2005, 2794, 2807)

NRS 649.155 Orderdenying application; notice of denial.

1. If the Commissioner finds that any application orapplicant for a collection agency license does not meet the requirements of NRS 649.135 or the applicant fails to passthe required examination, he shall enter an order denying the application.

2. Within 10 days after the entry of such an order,the Commissioner shall mail or deliver to the applicant written notice of thedenial in which all the reasons for such denial are stated.

(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1891)

NRS 649.165 Rightsof licensee. Upon receipt of the license, thelicensee shall have the right to conduct the business of a collection agencywith all the powers and privileges contained in, but subject to, the provisionsof this chapter.

[Part 5:237:1931; 1931 NCL 1420.04](Substituted inrevision for NRS 649.100)

NRS 649.167 Permitfor branch office; examination of principal office; manager required onpremises.

1. A collection agency licensed in this State mayapply to the Commissioner for a permit to operate a branch office in this Statein a location not previously approved by its license.

2. The Commissioner shall not issue a permit for abranch office until the principal office of the collection agency has beenexamined by the Commissioner and found to be satisfactory.

3. A branch office must have a manager on the premisesduring regular business hours.

4. The Commissioner shall adopt regulations concerningan application for a permit to operate a branch office.

(Added to NRS by 1987, 1508; A 1991, 2211)

FOREIGN COLLECTION AGENCIES

NRS 649.171 Certificateof registration; limitations on business practices; fees; disciplinary action;regulations.

1. A person who is not licensed in this State as acollection agency may apply to the Commissioner for a certificate ofregistration as a foreign collection agency.

2. To be issued and to hold a certificate ofregistration as a foreign collection agency, a person:

(a) Must hold a license or permit to do business as acollection agency in another state;

(b) Must meet the qualifications to do business as acollection agency in this State;

(c) Must not have any employees or agents present inthis State who engage in the collection of claims and must not maintain anybusiness locations in this State as a collection agency;

(d) Must submit proof to the Commissioner, uponapplication and upon each annual renewal of the certification of registration,that the person and his employees and agents will not, in this State:

(1) Engage in the business of soliciting theright to collect or receive payment for another of any claim; or

(2) Advertise or solicit, either in print, byletter, in person or otherwise, the right to collect or receive payment foranother of any claim;

(e) When collecting claims against debtors who arepresent in this State, must:

(1) Limit his activities and those of hisemployees and agents to interstate communications by telephone, mail orfacsimile; and

(2) Comply with the requirements of NRS 649.305 to 649.375, inclusive, with regard to hisactivities and those of his employees and agents;

(f) Must pay:

(1) A fee to apply for a certificate ofregistration of not less than $200 and not more than $600, prorated on thebasis of the registration year as determined by the Commissioner; and

(2) An annual renewal fee of not more than $200;

(g) Must deposit and maintain a bond or an appropriatesubstitute for the bond in the same manner as an applicant or licensee pursuantto NRS 649.105, 649.115 and 649.119;

(h) Must maintain his accounts, books and records inaccordance with generally accepted accounting principles and in accordance withthe requirements of subsection 1 of NRS649.335; and

(i) Must pay any fees related to any examination of hisaccounts, books and records conducted by the Commissioner pursuant tosubsection 3.

3. The Commissioner may conduct an annual examinationand any additional examinations pursuant to NRS649.335 of the accounts, books and records of each person who holds acertificate of registration as a foreign collection agency.

4. The Commissioner may take disciplinary actionpursuant to NRS 649.385, 649.390 and 649.395 against a person who holds acertificate of registration as a foreign collection agency for any act oromission that would be grounds for taking such disciplinary action under thosesections.

5. The Commissioner shall adopt:

(a) Regulations establishing the amount of the feesrequired pursuant to this section; and

(b) Any other regulations as may be necessary to carryout the provisions of this section.

(Added to NRS by 2005, 1865)

MANAGERS

NRS 649.175 Managerscertificate required. No person may be the managerof a collection agency unless he holds a valid managers certificate issued pursuantto the provisions of this chapter.

(Added to NRS by 1969, 831; A 1983, 1714)

NRS 649.185 Applicationto Commissioner. Each person who is, ordesires to become, the manager of a collection agency shall submit anapplication for a managers certificate to the Commissioner in accordance withthe provisions of this chapter. The application must include all informationrequired to complete the application.

(Added to NRS by 1969, 831; A 1983, 1714; 1987, 1891;1997, 2179; 2005,2794, 2807)

NRS 649.196 Applicantfor certificate: Qualifications; requirements; notice of refusal to issuecertificate; request for hearing; withdrawal of application.

1. Each applicant for a managers certificate mustsubmit proof satisfactory to the Commissioner that he:

(a) Is a citizen of the United States or lawfullyentitled to remain and work in the United States.

(b) Is at least 21 years of age.

(c) Has a good reputation for honesty, trustworthinessand integrity and is competent to transact the business of a collection agencyin a manner which protects the interests of the general public.

(d) Has not committed any of the acts specified in NRS 649.215.

(e) Has not had a collection agency license ormanagers certificate suspended or revoked within the 10 years immediatelypreceding the date of filing the application.

(f) Has not been convicted of, or entered a plea ofnolo contendere to, a felony or any crime involving fraud, misrepresentation ormoral turpitude.

(g) Has had not less than 2 years full-time experiencewith a collection agency in the collection of accounts assigned by creditorswho were not affiliated with the collection agency except as assignors ofaccounts. At least 1 year of the 2 years of experience must have been withinthe 18-month period preceding the date of filing the application.

2. Each applicant must:

(a) Pass the examination or reexamination provided forin NRS 649.205.

(b) Pay the required fees.

(c) Submit, in such form as the Commissionerprescribes:

(1) Three recent photographs; and

(2) Three complete sets of his fingerprintswhich the Commissioner may forward to the Central Repository for Nevada Recordsof Criminal History for submission to the Federal Bureau of Investigation forits report.

(d) Submit such other information reasonably related tohis qualifications for the managers certificate as the Commissioner determinesto be necessary.

3. The Commissioner may refuse to issue a managerscertificate if the applicant does not meet the requirements of subsections 1and 2.

4. If the Commissioner refuses to issue a managerscertificate pursuant to this section, he shall notify the applicant in writingby certified mail stating the reasons for the refusal. The applicant may submita written request for a hearing within 20 days after he receives the notice. Ifthe applicant fails to submit a written request within the prescribed period,the Commissioner shall enter a final order.

5. The Commissioner shall consider an application tobe withdrawn if the Commissioner has not received all information and feesrequired to complete the application within 6 months after the date theapplication is first submitted to the Commissioner or within such later periodas the Commissioner determines in accordance with any existing policies ofjoint regulatory partners. If an application is deemed to be withdrawn pursuantto this subsection or if an applicant otherwise withdraws an application, the Commissionermay not issue a license to the applicant unless the applicant submits a newapplication and pays any required fees.

(Added to NRS by 1969, 831; A 1977, 1568; 1983, 680,1715; 1987, 1891; 1995, 1000; 2003, 2865; 2005, 1870)

NRS 649.205 Examination.

1. The Commissioner shall provide for managersexaminations at such times and places as he may direct, at least twice eachyear.

2. The examinations must be of a length, scope andcharacter which the Commissioner deems reasonably necessary to determine thefitness of the applicants to act as managers of collection agencies.

3. If an applicant does not pass the examination, theapplicant must reapply to take the examination and pay a reexamination fee ofnot more than $100 for each subsequent examination. The Commissioner shalladopt regulations establishing the amount of the reexamination fee requiredpursuant to this subsection.

4. The Commissioner may make such rules andregulations as may be necessary to carry out the purposes of this section.

(Added to NRS by 1969, 831; A 1983, 1715; 1987, 1891;2005, 1871)

NRS 649.215 Groundsfor refusing examination or suspending or revoking certificate. The Commissioner may refuse to permit an applicant for amanagers certificate to take the examination, or, after a hearing, may suspendor revoke a managers certificate if the applicant or manager has:

1. Committed or participated in any act which, ifcommitted or done by a licensee, would be grounds for the suspension orrevocation of a license.

2. Been refused a license or certificate pursuant tothis chapter or had such a license or certificate suspended or revoked.

3. Participated in any act, which act was a basis forthe refusal or revocation of a collection agency license.

4. Falsified any of the information submitted to theCommissioner in support of an application pursuant to this chapter.

5. Impersonated, or permitted or aided and abettedanother to impersonate, a law enforcement officer or employee of the UnitedStates, a state or any political subdivision thereof.

6. Made any statement in connection with hisemployment with a collection agency with the intent to give an impression thathe was a law enforcement officer of the United States, a state or politicalsubdivision thereof.

(Added to NRS by 1969, 832; A 1983, 1715; 1985, 314;1987, 1892; 1995, 1001)

NRS 649.225 Issuanceof certificate; notice of managers change of residence address.

1. The Commissioner shall issue a managerscertificate to any applicant who meets the requirements of this chapter for thecertificate.

2. Each manager holding a managers certificate issuedpursuant to this chapter shall notify the Commissioner in writing of any changein his residence address within 10 days after the change.

(Added to NRS by 1969, 832; A 1983, 1716; 1987, 1892)

MISCELLANEOUS PROVISIONS

NRS 649.233 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license or managers certificate; duty of Commissioner. [Effectiveuntil the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

1. In addition to any other requirements set forth inthis chapter:

(a) A natural person who applies for the issuance of alicense as a collection agent or agency or a managers certificate shallinclude the social security number of the applicant in the applicationsubmitted to the Commissioner.

(b) A natural person who applies for the issuance orrenewal of a license as a collection agent or agency or a managers certificateshall submit to the Commissioner the statement prescribed by the Division ofWelfare and Supportive Services of the Department of Health and Human Servicespursuant to NRS 425.520. The statementmust be completed and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license or certificate; or

(b) A separate form prescribed by the Commissioner.

3. A license as a collection agent or agency or amanagers certificate may not be issued or renewed by the Commissioner if theapplicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 1997, 2177; A 2005, 2795, 2807)

NRS 649.233 Payment of child support: Submissionof certain information by applicant; grounds for denial of license or managerscertificate; duty of Commissioner. [Effective on the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings and expires bylimitation 2 years after that date.]

1. In addition to any other requirements set forth inthis chapter, a natural person who applies for the issuance or renewal of alicense as a collection agent or agency or a managers certificate shall submitto the Commissioner the statement prescribed by the Division of Welfare andSupportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completedand signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license or certificate; or

(b) A separate form prescribed by the Commissioner.

3. A license as a collection agent or agency or amanagers certificate may not be issued or renewed by the Commissioner if theapplicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agency enforcingthe order to determine the actions that the applicant may take to satisfy thearrearage.

(Added to NRS by 1997, 2177; A 2005, 2795, 2807, effective on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings)

NRS 649.235 Expiration;licenses and certificates not transferable. Eachcollection agency license and managers certificate issued pursuant to thischapter shall expire on June 30 of the year following its issuance andthereafter shall expire on June 30 of each year. A license or certificate shallnot be transferable.

[Part 8:237:1931; 1931 NCL 1420.07](NRS A 1969,838)(Substituted in revision for NRS 649.130)

NRS 649.245 Renewal.

1. A collection agency or manager desiring a renewalof a license or certificate which will expire shall file in the Office of theCommissioner, on or before June 1 in each year following the year of originalissuance, a renewal application, stating in addition to the matters required inthe original application the date and number of the license or certificatewhich will expire. The renewal application must be accompanied by the renewalfee and all information required to complete the renewal application.

2. The Commissioner shall issue a renewal license orcertificate to the applicant, which must be dated July 1 next ensuing the dateof the application, in form and text like the original except that, inaddition, the renewal must include the date and number of the earliest licenseor certificate issued.

3. All requirements of this chapter with respect tooriginal certificates, licenses and bonds apply with like force to all renewalcertificates, licenses and bonds except as otherwise specified in this section.

4. The Commissioner shall refuse to renew acertificate or license if at the time of application a proceeding to revoke orsuspend the certificate or license is pending.

[9:237:1931; 1931 NCL 1420.08](NRS A 1959, 827;1963, 1143; 1969, 838; 1983, 1716; 1985, 376; 1987, 1892; 1997, 2179; 2005, 2796, 2807)

FEES

NRS 649.295 Amounts;deposit.

1. A nonrefundable fee of not more than $500 for theapplication and survey must accompany each new application for a license as acollection agency. Each applicant shall also pay any additional expensesincurred in the process of investigation. All money received by theCommissioner pursuant to this subsection must be placed in the InvestigativeAccount created by NRS 232.545.

2. A fee of not less than $200 or more than $600,prorated on the basis of the licensing year as provided by the Commissioner,must be charged for each original license issued. A fee of not more than $500must be charged for each annual renewal of a license.

3. A fee of not more than $20 must be charged for eachduplicate license or license for a transfer of location issued.

4. A nonrefundable application fee of not more than$500 and a nonrefundable investigation fee of not more than $150 must accompanyeach application for a managers certificate.

5. A fee of not more than $40 must be charged for eachmanagers certificate issued and for each annual renewal of such a certificate.

6. A fee of not more than $60 must be charged for thereinstatement of a managers certificate.

7. A fee of not more than $10 must be charged for eachday an application for the renewal of a license or certificate, or a requiredreport, is filed late, unless the fee or portion thereof is excused by theCommissioner for good cause shown.

8. A nonrefundable fee of not more than $250 for theapplication and an examination must accompany each application for a permit tooperate a branch office of a licensed collection agency. A fee of not more than$500 must be charged for each annual renewal of such a permit.

9. For each examination the Commissioner shall chargeand collect from the licensee a fee for conducting the examination andpreparing and typing the report of the examination at the rate establishedpursuant to NRS 658.101. Failure to paythe fee within 30 days after receipt of the bill is a ground for revoking thecollection agencys license.

10. The Commissioner shall adopt regulations establishingthe amount of the fees required pursuant to this section.

11. Except as otherwise provided in subsection 1, allmoney received by the Commissioner pursuant to this chapter must be depositedin 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; 2005, 1871)

NRS 649.297 Feefor failure to submit reports.

1. If a holder of a license or managers certificatefails to submit any report required pursuant to this chapter or any regulationadopted pursuant thereto within the prescribed period, the Commissioner mayimpose and collect a fee of not more than $10 for each day the report isoverdue.

2. The Commissioner shall adopt regulationsestablishing the amount of the fee that may be imposed pursuant to thissection.

(Added to NRS by 2005, 1866)

NRS 649.300 Paymentof assessment; cooperation with audits and examinations. Each collection agency shall pay the assessment leviedpursuant to NRS 658.055 and cooperatefully with the audits and examinations performed pursuant thereto.

(Added to NRS by 1987, 827)

CONDUCT OF BUSINESS; PROHIBITED PRACTICES

NRS 649.305 Collectionagency not to operate without manager. No collectionagency may operate its business without a manager who holds a valid managerscertificate issued under the provisions of this chapter.

(Added to NRS by 1969, 830; A 1983, 1717)

NRS 649.315 Displayof license or certificate. Each license andcertificate issued under this chapter must be framed in a suitable frame underglass and hung in a conspicuous place upon the walls of the place of businessdesignated 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 Changeof location of business.

1. A collection agency shall not remove its businesslocation from the place of business as stated in the license except upon priorapproval by the Commissioner in writing.

2. If the removal is approved, the Commissioner shallnote the change upon the face of the license and enter in his records anotation 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 Notificationof change in management or ownership of voting stock; application for licensureof replacement; investigation; costs; waiver.

1. A collection agency shall immediately notify theCommissioner of any change:

(a) Of the manager of the agency; or

(b) If the agency is a corporation, in the ownership of5 percent or more of its outstanding voting stock.

2. An application must be submitted to theCommissioner, pursuant to NRS 649.095,by:

(a) The person who replaces the manager; and

(b) A person who acquires:

(1) At least 25 percent of the outstandingvoting stock of an agency; or

(2) Any outstanding voting stock of an agency ifthe change will result in a change in the control of the agency.

Except asotherwise provided in subsection 4, the Commissioner shall conduct aninvestigation to determine whether the applicant has the competence,experience, character and qualifications necessary for the licensing of acollection agency. If the Commissioner denies the application, he may in hisorder forbid the applicant from participating in the business of the collectionagency.

3. The collection agency with which the applicant isaffiliated shall pay such expenses incurred in the investigation as theCommissioner deems necessary. All money received by the Commissioner pursuantto this subsection must be placed in the Investigative Account created by NRS 232.545.

4. A collection agency may submit a written request tothe Commissioner to waive an investigation pursuant to subsection 2. TheCommissioner may grant a waiver if the applicant has undergone a similarinvestigation by a state or federal agency in connection with the licensing ofor his employment with a financial institution.

(Added to NRS by 1985, 1344; A 1987, 1894; 1991,1805)

NRS 649.334 Writtenagreement to be specific, intelligible and unambiguous; money collected to becredited first to principal; partial collection of claim prohibited; accountingof money collected on behalf of customer.

1. The terms and conditions of any written agreementbetween a collection agency and a customer must be specific, intelligible andunambiguous. In the absence of a written agreement, unless the conduct of theparties indicates a different mutual understanding, the understanding of thecustomer concerning the terms of the agreement must govern in any disputebetween the customer and the collection agency.

2. Unless a written agreement between the partiesotherwise provides, any money collected on a claim, after court costs have beenrecovered, must first be credited to the principal amount of the claim. Anyinterest charged and collected on the claim must be allocated pursuant to theagreement between the customer and the collection agency.

3. Except with the consent of its customer, acollection agency shall not accept less than the full amount of a claim insettlement of an assigned claim.

4. A collection agency shall, at the time it remits tothe customer the money it collected on behalf of the customer, give eachcustomer an accounting in writing of the money it collected on behalf of thecustomer in connection with a claim.

(Added to NRS by 1989, 2034)

NRS 649.3345 Withdrawalof claim by customer.

1. Unless a written agreement between the partiesotherwise provides, a customer may withdraw, without obligation, any claimassigned to a collection agency at any time 6 months after the date of theassignment if:

(a) The customer gives written notice of the withdrawalto the collection agency not less than 60 days before the effective date of thewithdrawal; and

(b) The claim is not in the process of being collected.

2. As used in this section, in the process of beingcollected, means that:

(a) A payment on the claim has been received after thedate of the assignment;

(b) An action on the claim has been filed by or onbehalf of the collection agency;

(c) The claim has been forwarded to another collectionagency for collection;

(d) A lawful and sufficient claim or notice of lien hasbeen filed by the collection agency on behalf of the customer to ensure paymentfrom money distributed in connection with the probate of an estate, proceedingin bankruptcy, assignment for the benefit of creditors or any similarproceeding; or

(e) The collection agency has obtained from the debtoran enforceable written promise to make payment.

3. Upon the withdrawal of any claim, the collectionagency shall return to the customer any documents, records or other itemsrelating to the claim that have been supplied by him.

(Added to NRS by 1989, 2034)

NRS 649.335 Retentionand examinations of records and accounts.

1. Every collection agency shall keep all recordsconcerning each of its accounts for at least 6 years following the completionof the last transaction concerning the account.

2. The Commissioner shall conduct an examination ofthe trust accounts and the records relating to debtors and customers of eachcollection agency licensed pursuant to this chapter at least once each year.

3. If there is evidence that a collection agency isnot complying with the provisions of this chapter, the Commissioner may conductan 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 toensure compliance with the provisions of this chapter.

(Added to NRS by 1969, 834; A 1983, 1718; 1987, 1894;1989, 2035)

NRS 649.345 Annualreports to Commissioner.

1. Each licensed collection agency shall file with theCommissioner a written report, signed and sworn to by its manager, no laterthan January 31 of each year, unless the Commissioner determines that there isgood cause for later filing of the report. The report must include:

(a) The total sum of money due to all creditors as ofthe close of the last business day of the preceding month.

(b) The total sum on deposit in customer trust fundaccounts and available for immediate distribution as of the close of the lastbusiness day of the preceding month, the title of the trust account oraccounts, and the name of the banks or credit unions where the money isdeposited.

(c) The total amount of creditors or forwarders shareof money collected more than 60 days before the last business day of thepreceding month and not remitted by that date.

(d) When the total sum under paragraph (c) exceeds $10,the name of each creditor or forwarder and the respective share of each in thatsum.

(e) Such other information, audit or reports as theCommissioner may require.

2. The filing of any report required by this sectionwhich is known by the collection agency to contain false information orstatements constitutes grounds for the suspension of the agencys license orthe managers certificate, or both.

(Added to NRS by 1969, 834; A 1981, 756; 1983, 1718;1987, 1894; 1989, 921; 1999,1540)

NRS 649.355 Businessethics and practices; trust accounts.

1. Every collection agency and collection agent shallopenly, fairly and honestly conduct the collection agency business and shall atall times conform to the accepted business ethics and practices of thecollection agency business.

2. Every licensee shall at all times maintain aseparate account in a bank or credit union in which must be deposited all moneycollected. Except as otherwise provided in regulations adopted by theCommissioner pursuant to NRS 649.054,the account must be maintained in a bank or credit union located in this Stateand bear some title sufficient to distinguish it from the licensees personalor general checking account and to designate it as a trust account, such ascustomers trust fund account. The trust account must at all times containsufficient money to pay all money due or owing to all customers, and nodisbursement may be made from the account except to customers or to pay costsadvanced for those customers, except that a licensee may periodically withdrawfrom the account such money as may accrue to the licensee from collectionsdeposited or from adjustments resulting from costs advanced and payments madedirectly to customers.

3. Every licensee maintaining a separate custodial ortrust account shall keep a record of all money deposited in the account, whichmust indicate clearly the date and from whom the money was received, the datedeposited, the dates of withdrawals and other pertinent information concerningthe transaction, and must show clearly for whose account the money is depositedand to whom the money belongs. The money must be remitted to the creditorsrespectively entitled thereto within 30 days following the end of the month inwhich payment is received. The records and money are subject to inspection bythe Commissioner or his authorized representative. The records must bemaintained at the premises in this State at which the licensee is authorized toconduct business.

4. If the Commissioner finds that a licensees recordsare not maintained pursuant to subsections 2 and 3, he may require the licenseeto deliver an audited financial statement prepared from his records by acertified public accountant who holds a certificate to engage in the practiceof public accounting in this State. The statement must be submitted within 60days after the Commissioner requests it. The Commissioner may grant areasonable extension for the submission of the financial statement if anextension 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 Approvalof business name required; prohibition against use of certain names, terms andforms.

1. A collection agency licensed under this chaptermust obtain the approval of the Commissioner before using or changing abusiness name.

2. A collection agency licensed under this chaptershall not:

(a) Use any business name which is identical or similarto a business name used by another collection agency licensed under thischapter or which may mislead or confuse the public.

(b) Use any printed forms which may mislead or confusethe public.

(c) Use the term credit bureau in its name unless itoperates a bona fide credit bureau in conjunction with its collection agencybusiness. For purposes of this paragraph, credit bureau means any personengaged in gathering, recording and disseminating information relative to thecreditworthiness, financial responsibility, paying habits or character ofpersons being considered for credit extension for prospective creditors.

(Added to NRS by 1969, 833; A 2005, 1872)

NRS 649.375 Prohibitedpractices. A collection agency, or itsmanager, agents or employees, shall not:

1. Use any device, subterfuge, pretense or deceptivemeans or representations to collect any debt, nor use any collection letter,demand or notice which simulates a legal process or purports to be from anylocal, 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:

(a) Any such interest, charge, fee or expense asauthorized by law or as agreed to by the parties has been added to theprincipal of the debt by the creditor before receipt of the item of collection;

(b) Any such interest, charge, fee or expense asauthorized by law or as agreed to by the parties has been added to theprincipal of the debt by the collection agency and described as such in thefirst written communication with the debtor; or

(c) The interest, charge, fee or expense has beenjudicially determined as proper and legally due from and chargeable against thedebtor.

3. Assign or transfer any claim or account upontermination or abandonment of its collection business unless prior writtenconsent by the customer is given for the assignment or transfer. The writtenconsent must contain an agreement with the customer as to all terms andconditions of the assignment or transfer, including the name and address of theintended assignee. Prior written consent of the Commissioner must also beobtained for any bulk assignment or transfer of claims or accounts, and anyassignment or transfer may be regulated and made subject to such limitations orconditions as the Commissioner by regulation may reasonably prescribe.

4. Operate its business or solicit claims forcollection from any location, address or post office box other than that listedon its license or as may be prescribed by the Commissioner.

5. Harass a debtors employer in collecting orattempting to collect a claim, nor engage in any conduct that constitutesharassment as defined by regulations adopted by the Commissioner.

6. Advertise for sale or threaten to advertise forsale any claim as a means to enforce payment of the claim, unless acting undercourt order.

7. Publish or post, or cause to be published orposted, any list of debtors except for the benefit of its stockholders ormembership in relation to its internal affairs.

8. Conduct or operate, in conjunction with itscollection agency business, a debt counseling or prorater service for a debtorwho has incurred a debt primarily for personal, family or household purposeswhereby the debtor assigns or turns over to the counselor or prorater any ofhis earnings or other money for apportionment and payment of his debts orobligations. This section does not prohibit the conjunctive operation of abusiness of commercial debt adjustment with a collection agency if the businessdeals 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 Investigationof verified complaint; verified answer; action by Commissioner after informalhearing.

1. Upon the filing with the Commissioner of a verifiedcomplaint against any collection agency or manager, the Commissioner shallinvestigate the alleged violation of the provisions of this chapter.

2. If the Commissioner determines that the complaintwarrants further action, he shall send a copy of the complaint and notice ofthe date set for an informal hearing to the accused and the Attorney General.

3. The Commissioner may require the accused collectionagency or manager to file a verified answer to the complaint within 10 daysafter service unless, for good cause shown, the Commissioner extends the timefor a period not to exceed 60 days.

4. If at the hearing the complaint is not explained tothe satisfaction of the Commissioner, he may take such action against theaccused 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 Investigationof 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 ifhe receives a verified complaint from any person that sets forth reason tobelieve that an unlicensed person is engaging in an activity for which alicense is required pursuant to this chapter.

2. If the Commissioner determines that an unlicensedperson is engaging in an activity for which a license is required pursuant tothis chapter, the Commissioner shall issue and serve on the person an order tocease and desist from engaging in the activity until such time as the personobtains a license from the Commissioner.

3. If a person upon whom an order to cease and desistis served does not comply with the order within 30 days after service, theCommissioner shall, after notice and opportunity for a hearing:

(a) Impose upon the person an administrative fine of$10,000; or

(b) Enter into a written consent agreement with theperson pursuant to which the person agrees to cease and desist from allunlicensed activity in this State relating to the collection of debts, andimpose upon the person an administrative fine of not less than $5,000 and notmore than $10,000.

Theimposition of an administrative fine pursuant to this subsection is a final decisionfor the purposes of judicial review.

4. The Commissioner shall bring suit in the name andon behalf of the State of Nevada against a person upon whom an administrativefine is imposed pursuant to subsection 3 to recover the amount of theadministrative fine:

(a) If no petition for judicial review is filedpursuant to NRS 233B.130 and the fineremains unpaid for more than 90 days after notice of the imposition of the fine;or

(b) If a petition for judicial review is filed pursuantto NRS 233B.130 and the fine remainsunpaid for more than 90 days after exhaustion of any right of appeal in thecourts of this State resulting in a final determination that upholds theimposition of the fine.

5. A persons liability for an administrative fine isin addition to any other penalty provided in this chapter.

(Added to NRS by 2001, 519)

NRS 649.395 Authorizeddisciplinary action; grounds for disciplinary action; effect of revocation oflicense; 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 acollection agency, or both impose a fine and suspend or revoke the license, byan order made in writing and filed in his office and served on the licensee byregistered or certified mail at the address shown in the records of theCommissioner, if:

(a) The licensee is adjudged liable in any court of lawfor breach of any bond given under the provisions of this chapter; or

(b) After notice and hearing, the licensee is foundguilty of:

(1) Fraud or misrepresentation;

(2) An act or omission inconsistent with thefaithful discharge of his duties and obligations; or

(3) A violation of any provision of thischapter.

2. The Commissioner may suspend or revoke the licenseof a collection agency without notice and hearing if:

(a) The suspension or revocation is necessary for theimmediate protection of the public; and

(b) The licensee is afforded a hearing to contest thesuspension or revocation within 20 days after the written order of suspensionor revocation is served upon the licensee.

3. Upon revocation of his license, all rights of thelicensee under this chapter terminate, and no application may be received fromany person whose license has once been revoked.

4. An order that imposes discipline and the findingsof 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, 20thSpecial Session, 224; 2005, 1784)

NRS 649.398 Suspensionof license or managers certificate for failure to pay child support or complywith certain subpoenas or warrants; reinstatement of license or managerscertificate. [Expires by limitation 2 years after the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a courtorder issued pursuant to NRS 425.540that provides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who is the holder of a licenseas a collection agent or agency or a managers certificate, the Commissionershall deem the license or certificate issued to that person to be suspended atthe end of the 30th day after the date on which the court order was issuedunless the Commissioner receives a letter issued to the holder of the licenseor certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of thelicense or certificate has complied with the subpoena or warrant or has satisfiedthe arrearage pursuant to NRS 425.560.

2. The Commissioner shall reinstate a license as acollection agent or agency or a managers certificate that has been suspendedby a district court pursuant to NRS 425.540if the Commissioner receives a letter issued by the district attorney or otherpublic agency pursuant to NRS 425.550 tothe person whose license or certificate was suspended stating that the personwhose license or certificate was suspended has complied with the subpoena orwarrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2178; A 2005, 2807)

NRS 649.400 Injunctiverelief.

1. If upon investigation it appears that a collectionagency is conducting its business in violation of this chapter or theregulations adopted by the Commissioner, or when it appears that any person isengaging in the business of a collection agency without being licensed underthe provisions of this chapter, the Commissioner may:

(a) Advise the district attorney of the county in whichthe business is conducted, and the district attorney shall cause theappropriate legal action to be taken to enjoin the operation of the business orprosecute the violations of this chapter; or

(b) Bring suit in the name and on behalf of the Stateof Nevada against such a person and any other person concerned in or in any wayparticipating in or about to participate in such unsafe or injurious practicesor action in violation of this chapter or the regulations adopted by theCommissioner to enjoin any such person from continuing or engaging in suchpractices or doing any such act.

2. If the Commissioner brings suit, the district courtof any judicial district may grant injunctions to prevent and restrain suchpractices or transactions. The court may, during the pendency of theproceedings before it, issue such temporary restraining orders as may appear tobe just and proper. The findings of the Commissioner shall be deemed to beprima facie evidence and sufficient grounds, in the discretion of the court,for the issue ex parte of a temporary restraining order. In any such proceedingsthe Commissioner may apply for and on due showing is entitled to have issuedthe courts subpoena requiring forthwith the appearance of any defendant andhis employees and the production of such documents, books and records as appearnecessary for the hearing of the petition, to testify and give evidenceconcerning the acts or conduct or things complained of in the application foran injunction.

(Added to NRS by 1987, 1507)

PENALTIES

NRS 649.435 Criminalpenalty for violations; each day of unlawful operation constitutes separateoffense. Any person who violates any provisionof this chapter is guilty of a gross misdemeanor. Each day a person operates acollection agency in violation of the provisions of this chapter is a separateviolation under this section.

[13:237:1931; 1931 NCL 1420.12](NRS A 1959, 828;1969, 841; 2001, 520)

NRS 649.440 Administrativefine for violations. In addition to any otherremedy or penalty, the Commissioner may impose an administrative fine of notmore than $10,000 upon a person who:

1. Without a license or certificate, conducts anybusiness or activity for which a license or certificate is required pursuant tothe provisions of this chapter; or

2. Violates any provision of this chapter or anyregulation adopted pursuant thereto.

(Added to NRS by 2005, 1867)

 

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