2005 Nevada Revised Statutes - Chapter 676 — Debt Adjusting

CHAPTER 676 - DEBT ADJUSTING

GENERAL PROVISIONS

NRS 676.010 Definitions.

NRS 676.015 Commissionerdefined.

NRS 676.020 Contractdefined.

NRS 676.030 Creditordefined.

NRS 676.040 Debtadjustment defined.

NRS 676.050 Debtordefined.

NRS 676.060 Licensedefined.

NRS 676.070 Licenseedefined.

NRS 676.080 Officedefined.

NRS 676.100 Applicability.

LICENSES

NRS 676.110 Engagingin business of debt adjusting without license or in violation of chapterprohibited.

NRS 676.120 Application;withdrawal of application.

NRS 676.125 Applicationfor license: Additional requirements; fingerprints; grounds for refusal oflicense.

NRS 676.130 Submissionof fees, bond and copy of contract with application; regulations; periodicdetermination of amount of bond.

NRS 676.135 Depositas substitute for surety bond.

NRS 676.140 Investigationof applicants.

NRS 676.150 Issuanceof license subsequent to findings by Commissioner.

NRS 676.160 Expiration,renewal and reinstatement of license; fees; regulations.

NRS 676.170 Dispositionof fees and charges.

NRS 676.180 Displayof license required.

NRS 676.190 Transferof license prohibited.

NRS 676.200 Additionallicenses for other offices.

NRS 676.205 Notificationof change in ownership of stock; application for license after certain acquisitions;investigation; costs; waiver.

NRS 676.207 Useor change of business name; prohibitions.

NRS 676.210 Surrender.

CONDUCT OF BUSINESS

NRS 676.220 Maintenanceof separate trust accounts; maintenance and preservation of records.

NRS 676.230 Reportsrequired.

NRS 676.235 Independentaudit and examination: Payment of assessment; cooperation.

NRS 676.240 Contracts:Form; contents.

NRS 676.250 Fees.

NRS 676.260 Remittancesto creditors; written statements of account and information on account todebtor.

DISCIPLINARY ACTION

NRS 676.270 Authorizationof Commissioner to investigate business; free access required; compellingattendance of witnesses; fee.

NRS 676.280 Authorityof Commissioner to require attendance of witnesses and production of documents.

NRS 676.290 Groundsfor denial, suspension or revocation of license; administrative fine forviolation.

NRS 676.295 Suspensionor revocation of license: Additional grounds.

NRS 676.300 Temporarysuspension of license: Conditions; notice; hearing; term of suspension.

NRS 676.310 Orderdenying or revoking license; contracts unaffected by disciplinary action orexpiration of license.

UNLAWFUL ACTS; PENALTIES

NRS 676.320 Engagingin business without license.

NRS 676.330 Prohibitedpractices.

NRS 676.335 Administrativefines.

NRS 676.340 Violationof chapter.

_________

GENERAL PROVISIONS

NRS 676.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS676.015 to 676.080, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1973, 1490; A 1983, 1812)

NRS 676.015 Commissionerdefined. Commissioner means the Commissionerof Financial Institutions.

(Added to NRS by 1983, 1812; A 1987, 1992)

NRS 676.020 Contractdefined. Contract means any agreemententered into under this chapter by a licensee and a debtor for the statedpurpose of debt adjusting.

(Added to NRS by 1973, 1490)

NRS 676.030 Creditordefined. Creditor means a person for whosebenefit moneys are being collected and disbursed by the licensee.

(Added to NRS by 1973, 1490)

NRS 676.040 Debtadjustment defined. Debt adjustment meansthe making of a contract or the performance thereunder, under whatever name,whereby a person, firm, company or corporation undertakes, for a consideration,the scheduled receipt of a debtors moneys or evidences thereof for the purposeof distribution among certain specified creditors in payment or partial paymentof the debtors obligations.

(Added to NRS by 1973, 1490)

NRS 676.050 Debtordefined. Debtor means a person from whommoneys are being accepted for disbursement to creditors.

(Added to NRS by 1973, 1490)

NRS 676.060 Licensedefined. License means a license issuedunder the provisions of this chapter.

(Added to NRS by 1973, 1490)

NRS 676.070 Licenseedefined. Licensee means any person, firm,company or corporation who is licensed under this chapter.

(Added to NRS by 1973, 1490)

NRS 676.080 Officedefined. Office means each location by streetnumber, building number, city and state where the business of debt adjusting isconducted.

(Added to NRS by 1973, 1490)

NRS 676.100 Applicability. This chapter does not apply to any of the following whilethey are engaged in the regular course of their properly licensed business orprofession:

1. Attorneys at law.

2. Banks, fiduciaries or financing and lendinginstitutions.

3. Title insurance companies.

4. Employees of licensees under this chapter.

5. Judicial officers or others acting under courtorders.

6. Nonprofit religious, fraternal or cooperativeorganizations offering debt adjustment service for their members exclusively.

7. Nonprofit corporations organized to renderfinancial planning service to the public.

(Added to NRS by 1973, 1491)

LICENSES

NRS 676.110 Engagingin business of debt adjusting without license or in violation of chapterprohibited. No person, firm, company orcorporation may engage in the business of debt adjusting except as provided inand authorized by this chapter, and without first having obtained a licensefrom the Commissioner.

(Added to NRS by 1973, 1491; A 1983, 1812; 1987,1992)

NRS 676.120 Application;withdrawal of application.

1. An application for a license must be in writing,under oath and in the form prescribed by the Commissioner.

2. The application must:

(a) Give the business name, location of the office,names and addresses of all officers and directors, if a corporation orassociation, and names and addresses of partners, if a copartnership.

(b) Be accompanied by a copy of the fictitious namecertificate or the articles of incorporation, where applicable.

(c) Contain such further relevant information as theCommissioner may require.

3. 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.

(Added to NRS by 1973, 1491; A 1983, 1812; 1987,1993; 2005, 1885)

NRS 676.125 Applicationfor license: Additional requirements; fingerprints; grounds for refusal oflicense.

1. In addition to any other requirements set forth inthis chapter, each applicant must submit:

(a) Proof satisfactory to the Commissioner that theapplicant:

(1) Has a good reputation for honesty,trustworthiness and integrity and is competent to transact the business forwhich the applicant seeks to be licensed in a manner which protects theinterests of the general public.

(2) Has not made a false statement of materialfact on the application for the license.

(3) Has not committed any of the acts specifiedin subsection 2.

(4) Has not had a license issued pursuant tothis chapter suspended or revoked within the 10 years immediately preceding thedate of the application.

(5) Has not been convicted of, or entered a pleaof nolo contendere to, a felony or any crime involving fraud, misrepresentationor moral turpitude.

(6) If the applicant is a natural person:

(I) Is at least 21 years of age; and

(II) Is a citizen of the United States orlawfully entitled to remain and work in the United States.

(b) 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.

2. In addition to any other lawful reasons, theCommissioner may refuse to issue a license to an applicant if the applicant:

(a) Has committed or participated in any act which, ifcommitted or done by a holder of a license, would be grounds for the suspensionor revocation of the license.

(b) Has previously been refused a license pursuant tothis chapter or has had such a license suspended or revoked.

(c) Has participated in any act which was a basis forthe refusal or revocation of a license pursuant to this chapter.

(d) Has falsified any of the information submitted tothe Commissioner in support of the application for the license.

(Added to NRS by 2005, 1883)

NRS 676.130 Submissionof fees, bond and copy of contract with application; regulations; periodicdetermination of amount of bond.

1. At the time of making the application, theapplicant shall:

(a) Pay to the Commissioner a nonrefundable fee of notmore than $500 for the application and survey. The applicant shall also paysuch additional expenses incurred in the process of investigation as theCommissioner deems necessary. In addition, a fee of not less than $200 or morethan $400, prorated on the basis of the licensing year as provided by theCommissioner, must be paid at the time of making the application. TheCommissioner shall adopt regulations establishing the amount of the feesrequired pursuant to this paragraph. All money received by the Commissionerpursuant to this subsection must be placed in the Investigative Account createdby NRS 232.545.

(b) Furnish a satisfactory bond to the State of Nevada,executed by an admitted surety company approved by the Commissioner, in theamount of $10,000, or an appropriate substitute pursuant to NRS 676.135, conditioned upon the faithfulaccounting of all money collected upon accounts and entrusted to the licensee,or its employees or agents.

(c) Provide a blank copy of the debt-adjustmentcontract which will be used by the licensee in its business.

2. Not later than 3 months after the issuance of thelicense and thereafter semiannually 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 NRS676.220:

 

AMOUNTOF

AVERAGE MONTHLY BALANCE BONDREQUIRED

Less than $50,000.............................................................................................. $10,000

$50,000 or more but less than$100,000............................................................ 25,000

$100,000 or more but less than$150,000.......................................................... 30,000

$150,000 or more but less than$200,000.......................................................... 40,000

$200,000 or more.................................................................................................. 50,000

 

(Added to NRS by 1973, 1491; A 1981, 1433; 1983, 1326,1812; 1987, 1993; 1989, 936; 1991, 1815; 2005, 1885)

NRS 676.135 Depositas substitute for surety 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 676.130:

(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, township, school district or other instrumentality of this state orguaranteed by this state, in an aggregate amount, based upon principal amountor market value, 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.

(Added to NRS by 1981, 1432; A 1983, 1812; 1987,1993)

NRS 676.140 Investigationof applicants. Upon the filing of theapplication and the payment of fees, the Commissioner shall investigate thefacts concerning the application and the requirements provided for in NRS 676.150.

(Added to NRS by 1973, 1491; A 1983, 1813; 1987,1994)

NRS 676.150 Issuanceof license subsequent to findings by Commissioner. Ifthe Commissioner finds that:

1. The financial responsibility, experience, characterand general fitness of the applicant and of the associates, directors orofficers thereof are such as to command the confidence of the public and towarrant belief that the business will be operated lawfully, honestly, fairlyand efficiently, within the purposes of this chapter; and

2. Allowing the applicant to engage in business willpromote the convenience and advantage of the community in which the licensedoffice is to be located,

he shallissue and deliver a license to the applicant.

(Added to NRS by 1973, 1491; A 1983, 1813; 1987,1994)

NRS 676.160 Expiration,renewal and reinstatement of license; fees; regulations.

1. A license expires on December 31 of each year. Onor before that date, each licensee may apply to the Commissioner for a renewalof his license.

2. The application must be on the form prescribed bythe Commissioner and must be accompanied by a fee of not less than $400 and abond, as in the case of the original application.

3. If the application, fee for renewal or bond isfiled after December 31, the Commissioner may renew the expired license uponreceipt of the application, fee for renewal and bond, and a fee of not morethan $400 for reinstatement.

4. Each license, as renewed, remains in force untilsurrendered, suspended or revoked as provided in this chapter.

5. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.

(Added to NRS by 1973, 1492; A 1983, 1813; 1987,1994; 1989, 922; 2005,1886)

NRS 676.170 Dispositionof fees and charges. Except as otherwise providedin NRS 676.130, all fees and chargescollected under the provisions of this chapter must be deposited in the StateTreasury pursuant to the provisions of NRS658.091.

(Added to NRS by 1973, 1492; A 1983, 1327; 2003, 3234)

NRS 676.180 Displayof license required. Each license shall bekept conspicuously posted in the licensed place of business.

(Added to NRS by 1973, 1492)

NRS 676.190 Transferof license prohibited. Licenses may not betransferred or assigned.

(Added to NRS by 1973, 1492)

NRS 676.200 Additionallicenses for other offices. Not more than oneoffice may be maintained under the same license. The Commissioner may issue additionallicenses to the same licensee for other offices upon compliance with the provisionsof this chapter governing issuance of a single license.

(Added to NRS by 1973, 1492; A 1983, 1813; 1987,1994)

NRS 676.205 Notificationof change in ownership of stock; application for license after certainacquisitions; investigation; costs; waiver.

1. A licensee shall immediately notify theCommissioner of any change in the ownership of 5 percent or more of theoutstanding voting stock of the licensee.

2. An application must be submitted to theCommissioner, pursuant to NRS 676.120,by a person who acquires:

(a) At least 25 percent of a licensees outstandingvoting stock; or

(b) Any outstanding voting stock of a licensee if thechange will result in a change in the control of the licensee.

Except asotherwise provided in subsection 4, the Commissioner shall conduct aninvestigation to determine whether the financial responsibility, experience,character and general fitness of the applicant are such as to command theconfidence of the public and to warrant belief that the business will beoperated lawfully, honestly, fairly and efficiently, within the purposes ofthis chapter. If the Commissioner denies the application, he may forbid theapplicant from participating in the business of the licensee.

3. The licensee with which the applicant is affiliatedshall pay such a portion of the cost of the investigation as the Commissionerrequires. All money received by the Commissioner pursuant to this subsectionmust be placed in the Investigative Account created by NRS 232.545.

4. A licensee may submit a written request to theCommissioner 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, 1347; A 1987, 1994; 1991,1815)

NRS 676.207 Useor change of business name; prohibitions.

1. A licensee must obtain the approval of theCommissioner before using or changing a business name.

2. A licensee shall not:

(a) Use any business name which is identical or similarto a business name used by another licensee under this chapter or which maymislead or confuse the public.

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

(Added to NRS by 2005, 1884)

NRS 676.210 Surrender. Any licensee may surrender any license by delivering it tothe Commissioner with written notice of its surrender, but a surrender does notaffect any civil or criminal liability for acts committed prior thereto.

(Added to NRS by 1973, 1492; A 1983, 1814; 1987,1995)

CONDUCT OF BUSINESS

NRS 676.220 Maintenanceof separate trust accounts; maintenance and preservation of records. Each licensee shall:

1. Open and maintain a separate trust account in astate or national bank or credit union doing business in this state. All moneyreceived from debtors for the benefit of creditors must be deposited in, andall payments to creditors must be disbursed from, this account.

2. Keep and use such books and accounting records asare in accord with sound and accepted accounting practices.

3. Maintain a separate record or ledger card for theaccount of each debtor, showing the amount of money received from and disbursedon behalf of each debtor.

4. Maintain a separate record, in a form approved bythe Commissioner, or ledger card for each creditor, identifying the particulardebtor-source of money and showing the amount of money disbursed in accordancewith the appropriate debt-adjustment contract.

5. Preserve all books and accounting records for atleast 7 years after making the final entry therein.

(Added to NRS by 1973, 1493; A 1983, 1814; 1987,1995; 1999, 1451)

NRS 676.230 Reportsrequired.

1. Annually, on or before April 15, each licenseeshall file with the Commissioner a report of operations of the licensedbusiness for the preceding calendar year.

2. A report must give information with respect to thefinancial operations of the licensee.

3. A report must be made under oath and must be in theform prescribed by the Commissioner.

(Added to NRS by 1973, 1493; A 1983, 1814; 1987,1995)

NRS 676.235 Independentaudit and examination: Payment of assessment; cooperation. Each licensee shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with theaudits and examinations performed pursuant thereto.

(Added to NRS by 1987, 827)

NRS 676.240 Contracts:Form; contents.

1. Every debt-adjustment transaction shall be basedupon a debt-adjustment contract entered into by the licensee and debtor underthe provisions of this chapter. A blank form of such contract shall accompanyeach application for a license or renewal thereof.

2. The contract, an executed copy of which shall bedelivered to the debtor, shall:

(a) List all the debtors obligations to be adjusted.

(b) Enumerate by name and address all the creditorsholding such obligations.

(c) State the total charges agreed upon as the fee forthe services of the licensee.

(d) Provide that upon the written consent of thedebtor, additional obligations to be adjusted may be added subsequent to thedate of the contract upon the same terms and conditions and at the same rate ofcharge as in such contract.

(e) Indicate the beginning and expiration dates of thecontract, which, in no case, may encompass a period longer than 36 months.

(f) Provide that the debtor may terminate hisobligations thereunder without penalty upon the payment of the charges allowedunder NRS 676.250 and agreed upon by theterms of this contract.

(Added to NRS by 1973, 1493)

NRS 676.250 Fees.

1. Licensees are allowed such fees as are clearlystated in the contract.

2. Such fees may include:

(a) An initial retainer fee of $50, which need not beamortized.

(b) A service fee, which must be amortized equally,each month, over the length of the contract, but no more than one monthlyamortization may be applied to the debtors account as charges for anyparticular month, unless prepayment is being made.

(c) A fee of $3 per check issued in payment of allnonterminal indebtedness.

3. The total amount of fees received by a licenseeunder any particular contract, exclusive of the retainer fee, may not exceed 15percent of the listed terminal indebtedness. Terminal indebtedness does notmean indebtedness on a residence or other expenses normally incurred inmaintaining a residence.

4. If the debtor chooses at any time to satisfy thetotal indebtedness listed in the contract before the expiration of thecontract, the licensee may charge and is limited to a fee of not more than 7percent of the then remaining balance of indebtedness listed in the contract.

5. No fee other than the initial retainer fee may becharged until the licensee has secured the consent of creditors:

(a) Constituting more than 50 percent of the totalnumber of creditors enumerated in the contract; and

(b) Holding more than 50 percent of the total amount ofindebtedness listed in the contract.

Theacceptance by a creditor of three consecutive payments made by the licensee inaccordance with the terms of the contract constitutes the consent of thatcreditor, if notice is included with each such payment that acceptance of threeconsecutive payments constitutes consent for the purposes of this subsection.

(Added to NRS by 1973, 1494; A 1985, 378; 1989, 1208)

NRS 676.260 Remittancesto creditors; written statements of account and information on account todebtor. Each licensee shall:

1. Make remittances to creditors within 10 days afterreceipt of the monthly remittance from the debtor.

2. Furnish a written statement of account to thedebtor at least once every 90 days. If the licensee has been doing business formore than 1 year, the Commissioner may waive the requirement of this subsectionas he shall determine.

3. Provide account information to the debtor verballywhen requested during normal business hours.

(Added to NRS by 1973, 1494; A 1983, 1814; 1987,1996)

DISCIPLINARY ACTION

NRS 676.270 Authorizationof Commissioner to investigate business; free access required; compellingattendance of witnesses; fee.

1. For the purpose of discovering violations of thischapter or of securing information lawfully required under this chapter, theCommissioner or his authorized representative may at any time and shall, atleast once each year, investigate the business and examine the books, accounts,papers and records of any licensee.

2. For the purpose of discovering violations of thischapter or of securing information lawfully required under this chapter, theCommissioner or his duly authorized representatives may at any time investigatethe business and examine the books, accounts, papers and records used thereinof:

(a) Any other person engaged in an activity for which alicense is required pursuant to the provisions of this chapter; and

(b) Any person whom the Commissioner has reasonablecause to believe is violating or is about to violate any provision of thischapter, whether or not the person claims to be within the authority or beyondthe scope of this chapter.

3. For the purpose of examination, the Commissioner orhis authorized representatives shall have and be given free access to theoffices and places of business, files, safes and vaults of such personsdescribed in this section.

4. The Commissioner may require the attendance of anyperson and examine him under oath regarding:

(a) Any transaction or business regulated pursuant tothe provisions of this chapter; or

(b) The subject matter of any audit, examination,investigation or hearing.

5. For each examination of a licensee, theCommissioner shall charge and collect from the licensee a fee for conductingthe examination and in preparing and typing the report of the examination atthe rate established pursuant to NRS 658.101.

(Added to NRS by 1973, 1492; A 1979, 956; 1983, 1327,1814; 1987, 1996, 2227; 2005, 1884)

NRS 676.280 Authorityof Commissioner to require attendance of witnesses and production of documents.

1. The Commissioner may require the attendance of anyperson and examine him under oath with regard to the debt adjustment businessregulated by this chapter or the subject matter of any examination,investigation or hearing.

2. The Commissioner may require the production of books,accounts, papers and records in aid of any examination, investigation orhearing.

(Added to NRS by 1973, 1492; A 1983, 1815; 1987,1996)

NRS 676.290 Groundsfor denial, suspension or revocation of license; administrative fine forviolation.

1. The Commissioner may, pursuant to the procedureprovided in this chapter, deny, suspend or revoke any license for whichapplication has been made or which has been issued under the provisions of thischapter if he finds, as to the licensee, its associates, directors or officers,grounds for action.

2. Any one of the following grounds may provide therequisite grounds for denial, suspension or revocation:

(a) Conviction of a felony relating to the practice ofdebt adjusters or of a misdemeanor involving moral turpitude.

(b) Violation of any of the provisions of this chapteror regulations of the Commissioner.

(c) Fraud or deceit in procuring the issuance of thelicense.

(d) Continuous course of unfair conduct.

(e) Insolvency, filing in bankruptcy, receivership orassigning for the benefit of creditors by any licensee or applicant for alicense under this chapter.

(f) Failure to pay a tax as required pursuant to theprovisions of chapter 363A of NRS.

(g) Failure to pay the fee for renewal or reinstatementof a license.

3. The Commissioner shall, after notice and hearing,impose upon the licensee an administrative fine of not more than $10,000 foreach violation by the licensee of any of the provisions of this chapter orregulations of the Commissioner. If a fine is imposed pursuant to this section,the costs of the proceeding, including investigative costs and attorneys fees,may be recovered by the Commissioner.

(Added to NRS by 1973, 1492; A 1983, 1815; 1987,1996; 1989, 923; 1993, 902; 2003, 2732; 2003, 20thSpecial Session, 227; 2005, 1886)

NRS 676.295 Suspensionor revocation of license: Additional grounds. Inaddition to any other lawful reasons, the Commissioner may suspend or revoke alicense if the licensee has engaged in any act that would be grounds fordenying a license pursuant this chapter.

(Added to NRS by 2005, 1884)

NRS 676.300 Temporarysuspension of license: Conditions; notice; hearing; term of suspension. If the Commissioner finds that any one of the requisitegrounds for denial, suspension or revocation of the license exists and that theenforcement of this chapter requires the immediate suspension of a license, hemay, upon 5 days written notice and a hearing, enter an order suspending alicense for a period not exceeding 20 days, pending the holding of a hearing asprescribed in NRS 676.310.

(Added to NRS by 1973, 1493; A 1983, 1815; 1987,1997)

NRS 676.310 Orderdenying or revoking license; contracts unaffected by disciplinary action orexpiration of license.

1. The Commissioner may, after notice and hearing,enter an order:

(a) Denying a license to any applicant who fails toestablish, at the hearing, its financial responsibility, experience, characterand general fitness to engage in debt adjusting; or

(b) Revoking the license of a licensee who fails toovercome, at the hearing, the probable cause for the revocation found by theCommissioner.

2. The denial, expiration, suspension or revocation ofa license, as provided in this chapter, does not impair nor affect theobligation under any lawful contract for debt adjustment.

(Added to NRS by 1973, 1493; A 1977, 96; 1983, 1816;1987, 1997; 1989, 923)

UNLAWFUL ACTS; PENALTIES

NRS 676.320 Engagingin business without license. Any person andthe several members, officers, directors, agents and employees of any firm,company or corporation who engage in the business of debt adjusting without thelicense required by this chapter are guilty of a misdemeanor.

(Added to NRS by 1973, 1495)

NRS 676.330 Prohibitedpractices. It is unlawful for a licensee to:

1. Purchase from a creditor any obligation of adebtor.

2. Operate as a collection agent and as a licensee asto any one debtor who has incurred a debt primarily for personal, family orhousehold purposes.

3. Execute any contract or agreement to be signed bythe debtor unless the contract or agreement is fully and completely filled inand finished.

4. Receive or charge any fee in the form of apromissory note or other promise to pay, or receive or accept any mortgage orother security for any fee, either as to real or personal property.

5. Pay any bonus or other consideration to any personfor the referral of a debtor to its business, nor shall it accept or receiveany bonus, commission or other consideration for referring any debtor to anyperson for any reason.

6. Advertise its services, display, distribute,broadcast or televise or permit to be displayed, advertised, distributed,broadcast or televised its services in any manner whatsoever whereby any false,misleading or deceptive statement or representation with regard to the servicesto be performed by the licensee or the charges to be made therefor is made.

(Added to NRS by 1973, 1495; A 1989, 1449)

NRS 676.335 Administrativefines. In addition to any other remedy or penalty,the Commissioner may impose an administrative fine of not more than $10,000upon a person who, without a license, conducts any business or activity forwhich a license is required pursuant to the provisions of this chapter.

(Added to NRS by 2005, 1884)

NRS 676.340 Violationof chapter. Any person and the severalmembers, officers, directors and employees of any firm, company or corporationwho violate any provision of this chapter are guilty of a misdemeanor.

(Added to NRS by 1973, 1495)

 

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