Nevada Collection Law Changes
We want to make sure that everyone is aware of the latest changes in Nevada's Licensing Laws that became effective on June 13, 2007. Please take the time to read the text of A.B.127, but we are providing highlights of the new regulations which may have an immediate impact on your operation (information gathered from ACA and ARM Insider materials)
- FDCPA violations become a violation of Chapter 649 of the Revised Statutes governing debt collectors.
- Any consumer has the right to record any telephone call from a debt collector, provided that they announce it to the debt collector.
- In order to verify a debt, the collector must obtain or attempt to obtain documentation that is "reasonably responsive" to the dispute of the consumer and mail it to the consumer.
- When collecting hospital accounts, the collector must provide in writing within five days (unless contained in the initial communication) that any payment may be construed as an acknowledgement of the debt in addition to a statute of limitations waiver by the consumer. It must also state that if the consumer has any questions or does not understand his legal rights relating to the debt, he or she should seek legal counsel.
Effective January 1, 2008
- The licensing exemption for out of state collection agencies will no longer be available. Prior to passage of this legislation, agencies that did not have an in-state client and only collected by interstate means, did not need a license to collect in Nevada. As of next year, all agencies will need a license or a certificate of registration to collect in the state.
- The new law also changes the need to maintain an office in Nevada in order to receive a license to collect. In 2008, agencies will be able to have one or more offices out of state and still obtain a license to collect in the state.