The regulations stem from a revised licensing law for collection agencies and branch office locations. Feedback is due Sept. 2.
08/24/2023 11:05 A.M.
3.5 minute read
The Nevada Financial Institutions Division (NFID) is planning to implement proposed regulations (PDF) under the state’s revised licensing law, which takes effect Oct. 1, 2023. Licensees are invited to provide feedback on the potential impacts of the regulations by Sept. 2.
The law, S.B. 276 (PDF), includes changes to licensing requirements for collection agencies and branch office locations.
Debt buyers are now included within the definition of a collection agency under the new law and will be required to obtain a license as a collection agency as well as comply with existing laws that apply to collection agencies, ACA International previously reported.
Under sections 18 and 39 of the law, debt buyers and an affiliate of the debt buyer are permitted to share a license.
The law takes effect Oct. 1, 2023. Debt buyers that operate in Nevada must apply for a license by Jan. 1, 2024, and can continue to operate until the license is issued.
Feedback Requested
As part of implementing the law, the NFID is collecting input from small businesses regarding the potential adverse and beneficial impacts the proposed regulations may have on those small businesses, according to a notice from the department (PDF).
The NFID will then hold at least one workshop to continue the rulemaking process.
The proposed regulatory language includes updates to licensing fees and clarifies the applicability of certain statutory provisions.
Requirements in S.B. 276 taking effect Oct. 1 include:
- A collection agent is authorized to work from a remote location under certain circumstances.
- Applicants for a license to operate a collection agency are also required to file a bond or an appropriate substitute with the state. The state currently determines the amount of the bond three months after submission and semiannually going forward. This law changes the bond review to be done annually.
- Branch offices will no longer have to obtain a permit to operate, but must notify the state of the branch office location.
- Existing law requires a collection agency to employ a manager who is certified as a manager and jointly responsible for the operation of the collection agency. This law revises the term “manager” to “compliance manager” and provides that a compliance manager is required to equally share responsibility only for the collection operation of the collection agency. A compliance manager is also prohibited from being employed as a compliance manager by more than one collection agency at a time, or by a collection agency and an exempt entity at the same time.
The NFID seeks feedback, especially from businesses with less than 150 employees, on whether any of the proposed regulations will have a positive or negative impact and any other indirect effects of the law. Businesses can add explanations to their responses to help the NFID understand the impact of the law.
If the NFID finds that the proposed regulatory language is likely to impose a direct and significant economic burden upon a small business, or directly restrict the formation, operation or expansion of a small business, it can consult with owners and officers of affected small businesses; consider methods to reduce the impact of the proposed regulations; and prepare a small impact statement and make copies of the statement available to the public at the workshop and public hearing.
Completed forms (PDF) should sent by Sept. 2 to:
Mary Young
Deputy Commissioner
Financial Institutions Division
3300 W. Sahara Ave., Suite 250
Las Vegas, NV 89102
Submissions may also be emailed to [email protected] with the subject line SBI-SB276.
For more updates on state laws, a quarterly series from ACA, “State Specifics for Collectors,” will eliminate confusion and help trainers, compliance officers and collectors in the accounts receivable management industry gain a better understanding of the most important state “can and cannots” to remain compliant on every call, no matter the consumer location. Stefanie Jackman, partner at Troutman Pepper, Abigail Pressler, general counsel at NCB Management Services Inc., and Nicholas Prola, general counsel at Professional Finance Company Inc., lead this session.
The next webinar is from 2 to 3 p.m. CDT, Sept. 15. Visit the registration page here.
For more state updates, members are invited to register and join the weekly ACA Huddle at 11 a.m. CDT on Wednesdays.
For more information on how the ACA licensing staff can assist with your licensing application completion needs, please contact us at [email protected] or call (952) 926-6547.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.