Debt buyers are included in the definition of collection agency in the law and will be required to apply for a collection agency license, among other changes.
06/28/2023 2:20 P.M.
2.5 minute read
A new law will take effect in Nevada Oct. 1 with changes to licensing requirements for collection agencies and branch office locations.
S.B. 276 was signed by Nevada Gov. Joe Lombardo on June 16.
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.
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 continuing to operate in Nevada must apply for a licensing by Jan. 1, 2024, and can continue to do so until the license is issued, or the application is denied.
Other requirements 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, rather just 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.
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.
For more state updates, members are invited to register and join the weekly ACA Huddle at 11 a.m. CDT on Wednesdays.