Nevada Administrative Code Chapter 649 - Collection Agencies
Here’s a detailed overview of Nevada Administrative Code Chapter 649 (NAC 649 – Collection Agencies), governing the licensing, operations, and oversight of collection agencies in Nevada:
📘 1. Scope & Definitions
Specifies who counts as a “collection agency,” “collection agent,” “debt buyer,” “customer,” etc. (leg.state.nv.us, law.justia.com).
⚖️ 2. Licensing & Registration
Requires collection agencies and agents to hold valid licenses.
Includes rules on application, required financial statements, bonds, and renewal. (us.vlex.com, law.justia.com).
Foreign collection agencies (outside NV) must register, pay fees, and adhere to disciplinary standards. .
🏢 3. Branches & Remote Locations
Agencies must notify and obtain approval for branch offices or remote work locations.
Remote agents must meet security standards, record interactions, and keep records within the agency’s oversight. .
👩💼 4. Compliance Managers
Each agency needs a designated compliance manager with certification.
Exams, renewals, and qualifications are detailed. Enforcement for misconduct. (law.justia.com).
💵 5. Fees & Financial Requirements
Fees cover licensing, renewals, late reports, and assessments.
Agencies are also mandated to maintain bonds or other security. (law.justia.com).
📋 6. Business Operations & Prohibited Conduct
Must display license, identify the manager, use a registered name, and verify debts before collection. (leg.state.nv.us).
Requires clear written agreements, trust accounting, limits on crediting payments, and maintenance of records. .
Special protections for medical debt: notification, voluntary payments, and consumer protections. (law.justia.com).
👥 7. Debt Buyer Licensing (NEW § 6.1 effective June 5, 2024)
Debt buyers can share a collection license with affiliates who only purchase debt (not collect it).
The agency remains fully liable for affiliate’s actions. Must report affiliates annually. (law.cornell.edu).
🚨 8. Enforcement & Discipline
The Commissioner of Financial Institutions can investigate, audit, suspend, or revoke licenses, and impose fines.
Agencies face both administrative and criminal penalties for violations. (fid.nv.gov).
🔍 Why It Matters
NAC 649 forms the operational backbone for consumer debt collection in Nevada, adding regulatory detail beyond the Revised Statutes (NRS 649).
The June 2024 regulation for debt buyers (NAC 649 Sec. 6.1) clarifies multi-entity licensing and liability.
🧭 For Practitioners or Companies:
Ensure your collection agency and staff each hold proper licenses.
Secure bonds and pay required fees.
Appoint and support a certified compliance manager.
Stay compliant with trust accounting, record-keeping, and communication standards—especially around medical debt.
Stay updated with Commissioner-issued regulations, and prepare for audits or examinations.
RELATED Blog
0 comments