Nevada authorized licensed collection agency operations to resume in June, but guidance is needed on remote work options. Editor’s note: This article is available for members only.
9/2/2020 12:30
ACA International and the Nevada Collectors Association (NCA) are requesting for the Nevada Financial Institutions Division (NFID) to consider reinstating a work-from-home exemption to protect workers in the accounts receivable management (ARM) industry and their families during the ongoing COVID-19 pandemic.
Work-from-home provisions have been safely implemented by the ARM industry in states across the country, with collectors remaining compliant with all federal and state consumer protection laws. In June, the NFID allowed licensed collection agencies to resume business as long as they remain in compliance with other emergency directives issued by Gov. Steve Sisolak.
ACA and the NCA filed the request for Nevada to reinstate the work-from-home exemption in a Sept. 1 letter to NFID Deputy Commissioner Mary Young after learning that the NFID informed several member companies that Nevada no longer considers the debt collector work-from-home exemption to be effective.
ACA members need clarity on the work-from-home exemption, which was not addressed in the NFID’s June notice reversing the restrictions on debt collection from Nevada residents.
In March, Nevada was one of the first states to disrupt the work of collection agencies in response to the COVID-19 crisis by including them in the “non-essential” business category. As a result, the NCA, led by Tim Myers, president of the NCA, along with Patrick Reilly, Nevada attorney state chair, worked to reverse the decision on behalf of Nevada’s members and other members throughout the country who collect in the state.
The resulting June guidance from the NFID allowed agencies to reopen in compliance with the governor’s guidelines and resume sending letters and making calls to Nevada consumers.
Other states, including Connecticut and Idaho, have extended their work-from-home guidance for the ARM industry due to the ongoing COVID-19 pandemic.
“Many debt collection companies have found that the only way to protect their employees from COVID-19 and continue working is to use work-from-home solutions,” Myers said in the letter to the NFID. “Not only has the work-from-home process protected debt collector representatives and their families and loved ones from contracting COVID-19, but many thousands of employees have kept their jobs. We are all too aware of the economic struggles and personal hardships that the pandemic has brought to this country.”
Nevada’s current collection statutes and regulations do not prohibit a work-from-home exemption during these extraordinary times. Specifically, Nev. Rev. Stat. Ann. Section 649.375(4) prohibits a licensed collection agency from operating “its business or solicit[ing] claims for collection from any location, address, or post office box other than that listed on its license or as may be prescribed by the Commissioner.” (Emphasis added.)
Based on the above statute, the commissioner has the authority to permit a work-from-home process.
“While the current public health threat continues, the ACA requests that the NFID reinstate its work-from-home waiver and allow licensed collection agencies and licensed foreign collection agencies to allow collectors to work from home provided that the work-from-home representatives are affiliated with a licensed office and working under the guidance and oversight of a licensed manager,” Myers said in the letter. (Emphasis added.)
ACA and the NCA are awaiting a response from the NFID and will provide ongoing updates for members.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.