NAC: CHAPTER 604A - DEFERRED DEPOSIT LOANS, SHORT-TERM LOANS, TITLE LOANS AND CHECK-CASHING SERVICES

[Rev. 5/25/2022 11:33:44 AM]

[NAC-604A Revised Date: 8-18]

CHAPTER 604A - DEFERRED DEPOSIT LOANS, SHORT-TERM LOANS, TITLE LOANS AND CHECK-CASHING SERVICES

GENERAL PROVISIONS

604A.010 Definitions.

604A.020 “Licensee” interpreted.

604A.030 Use of electronic or digital signature.

LICENSING AND FEES

604A.050 Application for license.

604A.060 Display of license: “License” and “location where he or she does business” interpreted.

604A.070 Grounds for refusal to renew license.

604A.080 Grounds for revocation or suspension of license.

604A.090 Fees and assessments.

OPERATION OF BUSINESS

604A.100 Prerequisites to conduct of business under license.

604A.110 Foreign business entities: Prerequisites to operation in State.

604A.120 Office or other place of business located outside of State.

604A.130 Notice of fees charged for services.

604A.140 Notice of toll-free telephone number for concerns and complaints.

604A.150 Display of hours of operation; termination of prescribed period for performance of act by customer.

604A.160 Translation of documents written in language other than English.

604A.170 Delivery to customer of notice of opportunity to enter into repayment plan.

604A.180 Documentation of compliance with limitations on amounts of deferred deposit loans and short-term loans.

604A.190 Required books and records: “Books and accounting records” interpreted.

604A.200 Maintenance of books and records.

604A.210 Restrictions on advertising.

604A.220 Prohibited acts: Acceptance of check as security for short-term loan or title loan.

604A.230 Prohibited acts: Miscellaneous acts.

GENERAL PROVISIONS

NAC 604A.010 Definitions. (NRS 604A.300) As used in this chapter, unless the context otherwise requires:

1. The words and terms defined in NRS 604A.015 to 604A.125, inclusive, have the meanings ascribed to them in those sections.

2. “License” means a license to operate a check-cashing service, deferred deposit loan service, short-term loan service or title loan service pursuant to the provisions of this chapter and chapter 604A of NRS.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.020 “Licensee” interpreted. (NRS 604A.300) For the purposes of this chapter and chapter 604A of NRS, the Commissioner interprets the term “licensee” to include:

1. A branch office of a licensee conducting business at any location, including a place of business located outside this State from which the licensee conducts business in this State.

2. An agent, employee, manager or officer of a licensee.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.030 Use of electronic or digital signature. (NRS 604A.300) Any document, notice, receipt or record for which a signature is required pursuant to the provisions of this chapter or chapter 604A of NRS may be signed electronically or digitally in accordance with the provisions of chapters 719 and 720 of NRS and any regulations adopted pursuant thereto.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

LICENSING AND FEES

NAC 604A.050 Application for license. (NRS 604A.300, 604A.600) An application for a license must, in addition to the requirements set forth in NRS 604A.600, include:

1. The name under which the applicant proposes to conduct his or her business.

2. A financial statement for the applicant’s most recent fiscal year or a copy of the applicant’s federal income tax return for each of the preceding 2 years, or both.

3. For each person who owns at least 25 percent of the voting stock, partnership or member interests of the business of the applicant, a record of the personal history of the person. The record must be submitted on a form provided by the Commissioner.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.060 Display of license: “License” and “location where he or she does business” interpreted. (NRS 604A.300, 604A.635) For the purposes of subsection 3 of NRS 604A.635, the Commissioner interprets:

1. “License” to mean an original license.

2. “Location where he or she does business” to include each branch location where the licensee does business.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.070 Grounds for refusal to renew license. (NRS 604A.300) The Commissioner may refuse to renew a license if the licensee violates any provision of this chapter or chapter 604A of NRS, or NRS 658.055 or 658.098, including, without limitation, a provision that imposes a fee or assessment on the licensee.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.080 Grounds for revocation or suspension of license. (NRS 604A.300) The grounds for revocation or suspension of a license, in addition to the grounds set forth in NRS 604A.820, are that the licensee:

1. Is insolvent or in such financial condition that the licensee cannot continue his or her business and ensure the financial safety of his or her customers;

2. Issues a check to a customer that is not paid upon presentment because the account of the licensee contains insufficient funds or has been closed or the licensee has stopped payment on the check;

3. Is grossly negligent or incompetent in performing any act for which the licensee is required to have a license;

4. Does not conduct the licensee’s business in accordance with law;

5. Makes a material misrepresentation of fact or fails to disclose a material fact that the licensee knows or should have known concerning a transaction governed by this chapter and chapter 604A of NRS;

6. Knowingly makes or causes to be made to the Commissioner any false representation of material fact;

7. Suppresses or withholds from the Commissioner any information that the licensee possesses concerning the existence of a fact or condition which would have justified the Commissioner in denying the licensee’s original application for a license;

8. Refuses to submit to an audit, examination, investigation or hearing ordered by the Commissioner;

9. Fails to provide the Commissioner with any information requested by the Commissioner pursuant to this chapter or chapter 604A of NRS;

10. Fails to pay any fees or assessments imposed on the licensee pursuant to this chapter or chapter 604A of NRS, or NRS 658.055 or 658.098;

11. Fails to maintain the surety bond as set forth in NRS 604A.610, or the security in lieu of a surety bond as set forth in NRS 604A.615; or

12. Engages in any other conduct that constitutes a deceitful, fraudulent or dishonest business practice, including, without limitation, a deceptive trade practice as defined in chapter 598 of NRS.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.090 Fees and assessments. (NRS 604A.300, 604A.600, 604A.640, 604A.740, 604A.760)

1. The nonrefundable application fee required pursuant to NRS 604A.600 is $400 plus $100 for each additional license for a branch location at which the applicant proposes to operate under the applicant’s license.

2. The additional application fee required pursuant to NRS 604A.600 is $375 plus $75 for each additional license for a branch location at which the applicant proposes to operate under his or her license. The Commissioner may refund the fee on a prorated basis if:

(a) An applicant withdraws his or her application before the Commissioner acts on the application;

(b) The Commissioner deems an application to be withdrawn because the applicant fails to submit all information and fees required to complete the application within the period set forth in NRS 604A.600; or

3. The fee to renew a license required pursuant to NRS 604A.640 is $375 plus $75 for each branch location at which the licensee is authorized to operate under the license.

4. The fee for reinstatement of an expired license as set forth in NRS 604A.640 is $150 plus $50 for each branch location at which the licensee is authorized to operate under the license.

5. The hourly fee authorized in NRS 604A.740 for supervision, audit, examination, investigation or hearing is $75.

6. The late fee for each day a licensee fails to submit a report required pursuant to the provisions of chapter 604A of NRS, as set forth in NRS 604A.760, is $10.

7. The Commissioner shall bill each licensee for any fee or assessment imposed pursuant to the provisions of this chapter and chapter 604A of NRS. The licensee shall pay the fee within 30 days after the date the licensee receives the bill. Except as otherwise provided in this subsection, any payment received after the date due must include a penalty of 10 percent of the fee, plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005; A by R054-16, 9-9-2016)

OPERATION OF BUSINESS

NAC 604A.100 Prerequisites to conduct of business under license. (NRS 604A.300) A licensee shall not conduct any business under his or her license unless:

1. The licensee possesses each license and permit required by this State or a local government as a condition to conducting business; and

2. The business location complies with the provisions of all applicable planning and zoning ordinances.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.110 Foreign business entities: Prerequisites to operation in State. (NRS 604A.300) A foreign corporation, association, trust or other business entity shall not operate a check-cashing service, deferred deposit loan service, short-term loan service or title loan service in this State unless the foreign business entity:

1. Qualifies to do business in this State pursuant to chapter 80 of NRS; and

2. Complies with the provisions of this chapter and chapter 604A of NRS.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.120 Office or other place of business located outside of State. (NRS 604A.300, 604A.620) If the Commissioner, pursuant to NRS 604A.620, issues a license for an office or other place of business located outside of this State from which the licensee may conduct business in this State, the place of business is:

1. Not required to be open to the public.

2. Subject to any audit, examination or investigation authorized pursuant to the provisions of this chapter or chapter 604A of NRS. The Commissioner will conduct the audit, examination or investigation in accordance with the terms of the agreement entered into with the licensee pursuant to NRS 604A.620.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.130 Notice of fees charged for services. (NRS 604A.300, 604A.405)

1. The notice required by paragraph (a) of subsection 1 of NRS 604A.405 must:

(a) Comply with the applicable provisions of Regulation Z and the Truth in Lending Act.

(b) Set forth the actual fees charged for each service.

NOTICE OF FEES CHARGED FOR SERVICES

Check-cashing fee....................... $___.__

Deferred deposit loan fee............ $___.__

Short-term loan fee...................... $___.__

Title loan fee................................ $___.__

(d) If printed, be in boldface type. Information that must be printed in all upper case letters must be printed in at least 18-point type. All other information must be printed in at least 16-point type.

(e) If handwritten or displayed digitally or by other electronic means, be in characters that are equivalent in intensity, legibility and size to the characters required for printed matter.

2. A licensee shall not include in this notice a fee for any service that he or she is not licensed to provide.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.140 Notice of toll-free telephone number for concerns and complaints. (NRS 604A.300, 604A.405) The notice required pursuant to paragraph (b) of subsection 1 of NRS 604A.405 must:

1. Be in substantially the following form:

NOTICE OF RIGHT TO CONTACT THE OFFICE OF THE COMMISSIONER OF FINANCIAL INSTITUTIONS REGARDING CONCERNS OR COMPLAINTS

You may contact the Office of the Commissioner of Financial Institutions regarding concerns or complaints about the service provider with whom you are dealing by calling the following toll-free telephone number in Nevada: 1 (866) 858-8951.

2. If printed, be in boldface type. Information that must be printed in all upper case letters, and the telephone number, must be printed in at least 18-point type. All other information must be printed in at least 16-point type.

3. If handwritten or displayed digitally or by other electronic means, be in characters that are equivalent in intensity, legibility and size to the characters required for printed matter.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.150 Display of hours of operation; termination of prescribed period for performance of act by customer. (NRS 604A.300)

1. A licensee shall prominently display at each location where he or she does business a notice that sets forth the days of the week and the hours of the day that the location is open for business.

2. A customer who is entitled or required to perform an act within a prescribed period, including a customer entitled to rescind a loan pursuant to NRS 604A.460, may perform the act at any time before the close of business on the last day within the prescribed period. If the last day is not a business day, or the location is not otherwise open for business on that day, the period during which the customer may perform the act is extended until the next business day at that location.

3. If a licensee closes a business location earlier than the time of day set forth in the licensee’s notice, the period during which the customer may perform the act is extended until the close of business on the next business day on which the location remains open for business until the time set forth in the notice.

4. For the purposes of this section, the business day of a location that is open for business after midnight shall be deemed to end at midnight.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.160 Translation of documents written in language other than English. (NRS 604A.300)

1. A licensee who uses a form or standard loan agreement written in Spanish as required by NRS 604A.410, notice of opportunity to enter into a repayment plan written in Spanish as required by NRS 604A.475, or other form or standard document written in a language other than English shall cause the document to be translated into English and maintain together a copy of the document and its English translation.

2. A document translated pursuant to this section must be:

(a) Translated by an interpreter who is:

(1) Certified by the Court Administrator in accordance with the provisions of NRS 1.510 and regulations adopted pursuant thereto; or

(2) Approved in writing by the Division.

(b) Accompanied by a certificate issued by the interpreter. The certificate must:

(1) Declare that the translated document is a true and complete translation of the document written in the language other than English;

(2) Identify the document written in a language other than English and its English translation;

(3) Include the date of translation; and

(4) Include the name, address, telephone number and electronic mail address, if any, of the interpreter.

3. The Commissioner may require a licensee to provide a translation of any nonstandard document that is written in a language other than English.

4. The Commissioner may assess a licensee for all costs incurred by the Commissioner to verify the licensee’s compliance with this section.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.170 Delivery to customer of notice of opportunity to enter into repayment plan. (NRS 604A.300, 604A.475)

1. A licensee who is required to provide a customer with written notice of the opportunity to enter into a repayment plan pursuant to NRS 604A.475 may deliver the written notice to the customer using any method of delivery that generates a record of the delivery.

2. A person who delivers a notice to a customer in person must execute an affidavit of delivery.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.180 Documentation of compliance with limitations on amounts of deferred deposit loans and short-term loans. (NRS 604A.300, 604A.425)

1. A licensee shall maintain written documentation to establish that, except as otherwise provided in NRS 604A.425 and 604A.430, the licensee has not made a:

(a) Deferred deposit loan that exceeds 25 percent of the expected gross monthly income of the customer when the loan is made; or

(b) Short-term loan that, under the terms of the loan agreement, requires any monthly payment that exceeds 25 percent of the expected gross monthly income of the customer.

2. A licensee shall maintain separate written documentation for each deferred deposit loan or short-term loan the licensee makes to a customer.

3. A licensee who fails to provide the Commissioner with the documentation required by this section is presumed to have violated NRS 604A.425.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.190 Required books and records: “Books and accounting records” interpreted. (NRS 604A.300, 604A.700) For the purposes of this chapter and chapter 604A of NRS, the Commissioner interprets the term “books and accounting records” as used in NRS 604A.700 to include, without limitation:

1. A copy of each receipt given by a licensee to a customer pursuant to NRS 604A.460 to 604A.475, inclusive, and 604A.495.

2. A record of each event that increases or decreases a customer’s indebtedness to the licensee. The record must include sufficient information to enable the Commissioner to reconcile the amount of the customer’s beginning balance with his or her ending or outstanding balance.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.200 Maintenance of books and records. (NRS 604A.300)

1. Except as otherwise provided in NRS 604A.700, a licensee shall maintain for at least 3 years the original or a copy of each account, book, paper, written or electronic record or other document that concerns each loan or other transaction involving a customer in this State.

2. Except as otherwise provided in NRS 604A.620, those records must be maintained at a place of business in this State designated by the licensee.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.210 Restrictions on advertising. (NRS 604A.300) A licensee shall not advertise in any manner that:

1. May tend to confuse the identity of the licensee with any other unrelated licensee.

2. States or implies that a loan of a prospective borrower with another licensee will be paid or increased if the loan is transferred to the advertising licensee.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.220 Prohibited acts: Acceptance of check as security for short-term loan or title loan. (NRS 604A.300, 604A.435) A licensee who accepts a check as security for a short-term loan or title loan violates NRS 604A.435 even if:

1. The check is not negotiable; or

2. The licensee does not negotiate the check.

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)

NAC 604A.230 Prohibited acts: Miscellaneous acts. (NRS 604A.300)

1. A licensee shall not:

(a) Require or accept a guarantor to a transaction entered into with a customer.

(b) Issue his or her own check to a customer unless the check is drawn on an account that is:

(1) Insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755;

(2) Identified as belonging to the licensee; and

(3) Maintained in a depository institution authorized to do business in this State.

(d) Collect or attempt to collect any interest incidental to the check other than the fees set forth in this chapter and chapter 604A of NRS.

(e) Operate his or her business from any location other than the location listed on his or her license.

(f) Harass the employer of a customer in attempting to collect on a check.

(g) Advertise for sale or threaten to advertise for sale any check as a means to enforce payment of the check, unless the licensee is acting pursuant to a court order.

(h) Except as otherwise provided in this paragraph, publish or post, or cause to be published or posted, a list of customers who have not paid on their checks. A licensee may publish or post such a list for the benefit of his or her agents, employees, officers, managers, stockholders or membership in connection with the internal affairs of the licensee. This provision does not prevent a licensee from providing information concerning a customer to a consumer reporting agency.

2. This section does not prohibit a licensee from selling his or her receivables or assigning past due receivables to a collection agent for collection.

3. As used in this section, “consumer reporting agency” has the meaning ascribed to it in section 603(f) of the Fair Credit Reporting Act, 15 U.S.C. § 1681a(f).

(Added to NAC by Comm’r of Financial Institutions by R150-05, eff. 12-29-2005)