NRS: CHAPTER 670B - STUDENT LOAN SERVICERS; PRIVATE EDUCATION LENDERS

[Rev. 6/29/2024 4:54:54 PM--2023]

CHAPTER 670B - STUDENT LOAN SERVICERS; PRIVATE EDUCATION LENDERS

GENERAL PROVISIONS

NRS 670B.010 Definitions.

NRS 670B.020 “Control person” defined.

NRS 670B.030 “Cosigner” defined.

NRS 670B.040 “License” defined.

NRS 670B.050 “Licensee” defined.

NRS 670B.060 “Nationwide Multistate Licensing System and Registry” or “Registry” defined.

NRS 670B.070 “Private education lender” defined.

NRS 670B.080 “Private education loan” defined.

NRS 670B.090 “Private education loan borrower” defined.

NRS 670B.100 “Student education loan” defined.

NRS 670B.110 “Student loan borrower” defined.

NRS 670B.120 “Student loan servicer” defined.

NRS 670B.130 “Student loan servicing” or “servicing” defined.

STUDENT LOAN SERVICERS

Licensing

NRS 670B.200 License required; exceptions.

NRS 670B.210 Application for license: Submission; financial statement; supporting information; fees; surety bond.

NRS 670B.220 Statement concerning obligation for child support required for issuance or renewal of license; suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 670B.230 Investigation of applicant; issuance of license.

NRS 670B.240 Person conducting student loan servicing pursuant to contract with United States Department of Education: Procedures for issuance of license; exemption from certain requirements; requirements upon expiration, revocation or termination of contract; provisions do not prevent Commissioner from taking certain actions.

NRS 670B.250 Expiration and renewal of license; filing of annual report.

NRS 670B.260 Commissioner authorized to take action to participate in Nationwide Multistate Licensing System and Registry; charges for use; regulations; provisions do not replace or affect authority of Commissioner regarding licensing.

NRS 670B.270 Submission and processing of fingerprints.

NRS 670B.280 Commissioner required to report certain information or material to Nationwide Multistate Licensing System and Registry; confidentiality of information or material provided; Commissioner authorized to enter into certain agreements and arrangements.

NRS 670B.290 Additional materials required to be submitted to Nationwide Multistate Licensing System and Registry.

NRS 670B.300 Licensee required to register and maintain unique identifier with Nationwide Multistate Licensing System and Registry; Commissioner authorized to issue license through Registry; references to Commissioner deemed references to Registry.

NRS 670B.310 Surrender of license: Required upon cessation of student loan servicing; notice to Commissioner; liability for acts or omissions occurring before surrender of license.

NRS 670B.320 Change in information provided in application for issuance or renewal of license: Notice to Commissioner required.

NRS 670B.330 Abandonment of application for license.

NRS 670B.340 Prohibition against acting under name or place not listed on license; notice to Commissioner required before change in place of business; issuance of multiple licenses to same licensee; license not transferable or assignable.

Payment of Assessments and Fees

NRS 670B.350 Payment of assessments.

NRS 670B.360 Automatic suspension or refusal to issue or renew license upon dishonored payment; notice and opportunity for hearing.

NRS 670B.370 Fees paid are nonrefundable.

Regulation of Practices

NRS 670B.380 Duties of student loan servicer: Response to inquiries; application of overpayment; application of partial payment; required actions upon transfer of servicing of student education loan; adoption of certain policies and procedures; evaluation for income-driven repayment program.

NRS 670B.390 Maintenance and availability of records concerning student education loans.

NRS 670B.400 Prohibited acts.

PRIVATE EDUCATION LENDERS

NRS 670B.450 Private education lender not exempt from other licensing requirements; duty of Commissioner to determine particular license required.

NRS 670B.460 Maintenance and accessibility of records; retention of loan file.

NRS 670B.470 Private education loan involving cosigner: Delivery of information to cosigner before extension of loan; requirements and prohibitions concerning release of cosigner; access of cosigner to documents and records relating to loan.

NRS 670B.480 Restrictions on acceleration of payments on private education loan and placement of loan or account into default; prohibited acts upon death or bankruptcy of cosigner.

NRS 670B.490 Duties and prohibited acts in event of total and permanent disability of private education loan borrower or cosigner.

NRS 670B.500 Required disclosures for private education loan used to refinance existing private education loan; flexible repayment options offered must be made available to all private education loan borrowers; provision of notice and information and establishment of policies and procedures concerning repayment and flexible repayment options.

NRS 670B.510 Prohibited acts.

MISCELLANEOUS PROVISIONS

NRS 670B.550 Compliance with applicable federal laws and regulations required; violation of such federal law or regulation deemed violation of chapter.

ADMINISTRATION AND ENFORCEMENT

NRS 670B.600 Regulations.

NRS 670B.610 Administration, accounting and use of money received by Commissioner; nonreversion; interest and income; claims.

NRS 670B.620 Authorized activities of Commissioner concerning student education loans: Monitoring and assessment of market; gathering information regarding private education lenders and student loan servicers; developing and publicizing metrics; meeting and conferring with certain governmental entities.

NRS 670B.630 Complaints: Submission to Commissioner for investigation; Division of Financial Institutions required to share with Office of the Attorney General.

NRS 670B.640 Investigations and examinations: Conduct; frequency; fees.

NRS 670B.650 Powers of Commissioner related to conducting examinations and investigations, sharing resources, documents, records, information and evidence and standardizing methods and procedures.

NRS 670B.660 Authority of Commissioner unaffected by student loan servicer or other person under examination or investigation acting or claiming to act under authority of other laws.

NRS 670B.670 Knowingly withholding, abstracting, removing, mutilating, destroying or secreting information related to investigation or examination prohibited.

NRS 670B.680 Confidentiality and disclosure of certain books, records and information obtained by Division of Financial Institutions.

NRS 670B.690 Denial, suspension, revocation or refusal to renew license: Authority of Commissioner; grounds.

NRS 670B.700 Action to restrain or prevent violation or continuance of violation of chapter.

NRS 670B.710 Civil action against student loan servicer or private education lender for violation of chapter; relief; treble damages.

NRS 670B.720 Violation of chapter may be violation of Nevada Equal Credit Opportunity Law; treble damages required in civil action against provider of student education loan that filed false information; rights, remedies and penalties are cumulative.

_________

GENERAL PROVISIONS

NRS 670B.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 670B.020 to 670B.130, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2023, 2855)

NRS 670B.020 “Control person” defined.

1. “Control person” means:

(a) An executive officer, director, general partner, trustee, member, qualified employee or shareholder of a student loan servicer, licensee or applicant for a license; or

(b) A person who is authorized to participate in direct or indirect control of the management or policies of a student loan servicer, licensee or applicant for a license.

2. As used in this section, “executive officer” means an officer, manager, partner or managing member of a student loan servicer, licensee or applicant for a license. The term includes, without limitation, a chief executive officer, president, vice president, chief financial officer, chief operating officer, chief legal officer, controller or compliance officer or a natural person who holds any similar position.

(Added to NRS by 2023, 2855)

NRS 670B.030 “Cosigner” defined. “Cosigner” means:

1. Any person who is liable for the obligation of another without compensation, regardless of how the person is designated in the contract or instrument with respect to that obligation, including, without limitation, an obligation under a private education loan extended to consolidate a borrower’s pre-existing private education loans. The term includes any person whose signature is requested as a condition to grant credit or to forbear on collection.

2. As used in this section, the term does not include a spouse of a person described in subsection 1 whose signature is needed to perfect the security interest in a loan.

(Added to NRS by 2023, 2855)

NRS 670B.040 “License” defined. “License” means a license issued by the Commissioner pursuant to this chapter.

(Added to NRS by 2023, 2856)

NRS 670B.050 “Licensee” defined. “Licensee” means a student loan servicer licensed by the Commissioner pursuant to this chapter.

(Added to NRS by 2023, 2856)

NRS 670B.060 “Nationwide Multistate Licensing System and Registry” or “Registry” defined. “Nationwide Multistate Licensing System and Registry” or “Registry” has the meaning ascribed to it in NRS 604A.083.

(Added to NRS by 2023, 2856)

NRS 670B.070 “Private education lender” defined.

1. “Private education lender” means any person engaged in the business of securing, making or extending private education loans, or any holder of a private education loan.

2. To the extent that state law is not preempted by federal law, the term does not include:

(a) A bank, savings bank, savings and loan association or credit union;

(b) A wholly owned subsidiary of a bank or credit union;

(d) The Nevada System of Higher Education; or

(e) The Western Interstate Commission for Higher Education.

(Added to NRS by 2023, 2856)

NRS 670B.080 “Private education loan” defined.

1. “Private education loan” means an extension of credit that is:

(a) Extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends; and

(b) Not made, insured or guaranteed under Title IV of the Higher Education Act of 1965, 20 U.S.C. §§ 1070 et seq.

2. The term does not include an:

(a) Open-end credit or any loan that is secured by real property or a dwelling; or

(b) Extension of credit in which the covered educational institution is the creditor if:

(1) The term of the extension of credit is 90 days or less; or

(2) An interest rate is not applied to the credit balance and the term of the extension of credit is 1 year or less, even if the credit is payable in more than four installments.

(Added to NRS by 2023, 2856)

NRS 670B.090 “Private education loan borrower” defined. “Private education loan borrower” means any resident of this State who has received or agreed to pay a private education loan for the borrower’s own educational expenses.

(Added to NRS by 2023, 2856)

NRS 670B.100 “Student education loan” defined. “Student education loan” means any loan primarily for personal use to finance education or other school-related expenses. The term includes a private education loan.

(Added to NRS by 2023, 2856)

NRS 670B.110 “Student loan borrower” defined. “Student loan borrower” means a:

1. Resident of this State who receives or agrees to pay a student education loan; or

2. Person who shares responsibility with such a resident for repaying the student education loan.

(Added to NRS by 2023, 2856)

NRS 670B.120 “Student loan servicer” defined. “Student loan servicer” means any person, wherever located, responsible for the servicing of any student education loan to any student loan borrower. The term includes a licensee and a person who engages in student loan servicing without a license pursuant to subsection 2 of NRS 670B.200. The term does not include the Nevada System of Higher Education or the Western Interstate Commission for Higher Education.

(Added to NRS by 2023, 2857)

NRS 670B.130 “Student loan servicing” or “servicing” defined. “Student loan servicing” or “servicing” means:

1. Receiving any scheduled periodic payments from a student loan borrower pursuant to the terms of a student education loan or any notification that a student loan borrower made such a scheduled periodic payment and applying the payments to the account of a student loan borrower, as may be required pursuant to the terms of a student education loan or a contract governing the servicing of a student education loan;

2. During a period in which no payment is required on a student education loan, maintaining account records for a student education loan and communicating with the student loan borrower on behalf of the owner of the promissory note for the student education loan; or

3. Interacting with a student loan borrower concerning a student education loan, including activities to prevent default on the student education loan, to facilitate the activities described in subsection 1 or 2.

(Added to NRS by 2023, 2857)

STUDENT LOAN SERVICERS

Licensing

NRS 670B.200 License required; exceptions.

1. Except as otherwise provided in subsection 2, a person shall not act as a student loan servicer, directly or indirectly, without first obtaining a license from the Commissioner pursuant to this chapter.

2. The following persons may act as a student loan servicer without obtaining a license pursuant to this chapter:

(a) Any bank, savings and loan association, savings bank, thrift company or credit union, whether chartered by this State, another state or the Federal Government.

(b) Any wholly owned subsidiary of any person identified in paragraph (a).

(c) Any operating subsidiary of any person identified in paragraph (a) if each owner of the operating subsidiary is wholly owned by the same person identified in paragraph (a).

(Added to NRS by 2023, 2857)

NRS 670B.210 Application for license: Submission; financial statement; supporting information; fees; surety bond. Except as otherwise provided in NRS 670B.240, a person may apply for a license as a student loan servicer by submitting a written application to the Commissioner on a form prescribed by the Commissioner. The application must be accompanied by:

1. A financial statement prepared by a certified public accountant or a public accountant, the accuracy of which is sworn to under oath before a notary public by the proprietor, a general partner or a corporate officer or a member authorized to execute such documents;

2. Any other information requested by the Commissioner or otherwise required in connection with the evaluation and investigation of the applicant’s qualifications and suitability for licensure;

3. A nonrefundable license fee of $1,000;

4. A nonrefundable investigation fee of $800; and

5. A surety bond in an amount determined by the Commissioner.

(Added to NRS by 2023, 2857)

1. In addition to any other requirements set forth in this chapter, a natural person who applies for the issuance or renewal of a license as a student loan servicer or, if the applicant is not a natural person, each control person of the applicant, shall:

(a) Include the social security number of the applicant or control person, as applicable, in the application submitted to the Commissioner.

(b) Submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520.

2. The Commissioner shall include the statement required pursuant to subsection 1 in:

(a) The application or any other forms that must be submitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Commissioner.

3. A license as a student loan servicer may not be issued or renewed by the Commissioner if the applicant or any control person of an applicant:

(a) Fails to submit the statement required by subsection 1; or

(b) Indicates on the statement submitted pursuant to subsection 1 that he or she is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

4. If an applicant or a control person indicates on the statement submitted pursuant to subsection 1 that he or she is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant or control person, as applicable, to contact the district attorney or other public agency enforcing the order to determine the actions that he or she may take to satisfy the arrearage.

5. If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to an applicant or control person, the Commissioner shall deem that license to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the applicant or control person by the district attorney or other public agency pursuant to NRS 425.550 stating that he or she has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

6. The Commissioner shall reinstate a license as a student loan servicer that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the applicant or a control person of the applicant stating that the applicant or control person, as applicable, has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 2023, 2858)

NRS 670B.230 Investigation of applicant; issuance of license. Except as otherwise provided in NRS 670B.240, upon the filing of an application for an initial license and the payment of the license fee and the investigation fee and submission of the surety bond required by NRS 670B.210, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the applicant. The Commissioner may issue a license if the Commissioner finds that:

1. The applicant’s financial condition is sound;

2. The applicant’s business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of this chapter and in a manner commanding the confidence and trust of the community;

3. If the applicant is:

(a) A natural person, the person is in all respects properly qualified and of good character;

(b) A partnership, each partner is in all respects properly qualified and of good character;

(c) A corporation or association, the president, chairperson of the executive committee, senior officer responsible for the corporation’s business and chief financial officer or any other person who performs similar functions as determined by the Commissioner, each director, each trustee and each shareholder owning 10 percent or more of each class of the securities of such corporation is in all respects properly qualified and of good character; or

(d) A limited liability company, each member is in all respects properly qualified and of good character;

4. No person on behalf of the applicant knowingly has made any incorrect statement of a material fact in the application, or in any report or statement made pursuant to this chapter;

5. No person on behalf of the applicant knowingly has omitted to state any material fact necessary to give the Commissioner any information lawfully required by the Commissioner;

6. The applicant has paid the license fee and the investigation fee and submitted the surety bond required by NRS 670B.210; and

7. The applicant has met any other requirements set forth by the Commissioner in regulations adopted pursuant to this chapter.

(Added to NRS by 2023, 2859)

1. A person seeking to act as a student loan servicer is exempt from the application procedures described in subsections 1 and 2 of NRS 670B.210 and NRS 670B.290 upon a determination by the Commissioner that the person’s student loan servicing performed in this State is conducted pursuant to a contract awarded by the United States Secretary of Education pursuant to 20 U.S.C. § 1087f. The Commissioner shall, by regulation, prescribe the procedure for documenting a person’s eligibility for this exemption.

2. Upon payment of the license fee and investigation fee and the submission of the surety bond required by NRS 670B.210, the Commissioner shall:

(a) Issue a license to a person determined to be exempt pursuant to this section; and

(b) Deem the person to have satisfied all requirements set forth in NRS 670B.210 and 670B.290.

3. A person issued a license pursuant to this section:

(a) Is exempt from the requirements of NRS 670B.220, 670B.230 and 670B.270; and

(b) Shall, except to the extent that those requirements are inconsistent with federal law, comply with all other applicable provisions of this chapter, including, without limitation, the record retention requirements set forth in NRS 670B.390.

4. A person issued a license pursuant to this section shall provide the Commissioner with written notice within 7 days after notification of the expiration, revocation or termination of a contract awarded by the United States Secretary of Education pursuant to 20 U.S.C. § 1087f. The person must satisfy all requirements set forth in NRS 670B.210 and 670B.290 not later than 30 days after submitting such notice to the Commissioner in order to continue to act as a student loan servicer. At the expiration of the 30-day period, if the requirements have not been satisfied, the Commissioner shall immediately suspend a license granted to the person pursuant to this section.

5. With respect to student loan servicing not conducted pursuant to a contract awarded by the United States Secretary of Education pursuant to 20 U.S.C. § 1087f, nothing in this section prevents the Commissioner from issuing or filing a civil action for an order to temporarily or permanently bar a person from acting as a student loan servicer for violating applicable law.

(Added to NRS by 2023, 2859)

NRS 670B.250 Expiration and renewal of license; filing of annual report.

1. A license issued pursuant to this chapter expires on December 31 of each year following its issuance, unless renewed or earlier surrendered, suspended or revoked pursuant to this chapter.

2. A licensee may renew a license issued pursuant to NRS 670B.230 by filing with the Commissioner an application containing the documents and fees set forth in NRS 670B.210 for an initial license. Such a renewal application shall be deemed to be timely filed if filed on or before November 1 of the year in which the license expires. Any renewal application filed with the Commissioner after November 1 must be accompanied by a late fee of $100 and, if so, such a filing also shall be deemed to be timely filed. If an application for renewal of a license is timely filed with the Commissioner pursuant to this subsection on or before the date the license expires, the license sought to be renewed continues in full force and effect until the issuance by the Commissioner of the renewed license or until the Commissioner notifies the licensee in writing of the Commissioner’s refusal to issue a renewed license together with the grounds upon which such refusal is based. The Commissioner may refuse to issue a renewed license on any ground on which the Commissioner may refuse to issue an initial license.

3. A licensee may renew a license issued pursuant to NRS 670B.240 by filing with the Commissioner, before the expiration of the license, an application containing any documents and fees required pursuant to NRS 670B.240 for an initial license.

4. Annually, on or before April 15, each licensee shall file with the Commissioner and the Nationwide Multistate Licensing System and Registry a report of operations of the licensed business for the immediately preceding calendar year under oath and on a form prescribed by the Commissioner.

(Added to NRS by 2023, 2862)

1. The Commissioner may, in furtherance of his or her duties with respect to the issuance and renewal of licenses, participate in the Nationwide Multistate Licensing System and Registry. The Commissioner may take any action with respect to participation in the Registry that the Commissioner deems necessary to carry out his or her duties, including, without limitation:

(a) Facilitating and participating in the establishment and implementation of the Registry;

(b) Establishing relationships or contracts with the Registry or other entities designated by the Registry;

(d) Authorizing the Registry to, on behalf of the Commissioner, collect and process any fees associated with licensure, examinations, fines, assessments and any other similar fees;

(e) Requiring an applicant for a licensee to use the Registry to:

(1) Apply for the issuance or renewal of a license;

(2) Amend or surrender a license;

(3) Submit any reports or the results of any examination that the Commissioner may require;

(4) Pay any applicable fees; and

(5) Engage in any other activity that the Commissioner may require; and

(f) Authorizing the Registry to, on behalf of the Commissioner, collect fingerprints in order to receive or conduct a background check on the criminal history of an applicant for a license or a licensee.

2. An applicant for a license or a licensee shall, in addition to any other fees associated with the license, pay all applicable charges to use the Registry, including, without limitation, any processing charges established by the administrator of the Registry.

3. The Commissioner may adopt any regulations the Commissioner determines to be necessary or appropriate to carry out the provisions of this section. Such regulations may, without limitation, establish additional procedures and requirements for participation in the Registry.

4. The provisions of this section shall not be construed to replace or affect the authority of the Commissioner to grant, deny, suspend, terminate, revoke or refuse to renew a license.

(Added to NRS by 2023, 2860)

NRS 670B.270 Submission and processing of fingerprints.

1. The Commissioner may require an applicant for a license or a licensee to submit a complete set of fingerprints when the Commissioner determines necessary.

2. The Commissioner may use the services of the Registry to process and to submit the fingerprints to the Federal Bureau of Investigation, to the Central Repository for Nevada Records of Criminal History, to any federal or state law enforcement agency or to any other entity authorized to receive such information for the purpose of conducting a background check of the criminal history of an applicant for a license or a licensee.

(Added to NRS by 2023, 2861)

1. Subject to any limitations or restrictions contained in federal or state law governing the privacy or confidentiality of records, the Commissioner shall report regularly any violations of applicable laws committed by applicants for a license or licensees, enforcement actions and other relevant information to the Registry.

2. The requirements under any federal or state law, including, without limitation, rules of a federal or state court, regarding the privacy and confidentiality of any information or material provided to the Registry and any privilege arising under federal or state law with respect to such information or material, continue to apply to such information or material after it has been disclosed to the Registry. Such information and material may be shared with federal and state regulatory officials with oversight authority over licensees without the loss of privilege or the loss of confidentiality protections provided by federal or state law.

3. The Commissioner may enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the State Regulatory Registry, LLC, or other associations representing governmental agencies.

(Added to NRS by 2023, 2861)

NRS 670B.290 Additional materials required to be submitted to Nationwide Multistate Licensing System and Registry. Except as otherwise provided in NRS 670B.240, in addition to any other requirements set forth by specific statute, each applicant for the issuance of a license, each control person of the applicant and any other person the Commissioner may require in accordance with guidelines of the Registry or other multistate agreements shall submit to the Registry:

1. A complete set of fingerprints for submission to the Federal Bureau of Investigation and any other governmental agency or entity authorized to receive such information for a state, national and international background check on the criminal history of the person;

2. Information concerning the personal history, financial history and experience of the person in a form prescribed by the Registry, including, without limitation, an authorization of the person for the Registry and the Commissioner to obtain:

(a) An independent credit report and credit score from a consumer reporting agency described in section 603(f) of the Fair Credit Reporting Act, 15 U.S.C. § 1681a(f), for the purpose of evaluating the financial responsibility of the person at the time of the submission of the application; and

(b) Additional independent credit reports and credit scores to confirm that the applicant continues to comply with any applicable requirements concerning financial responsibility;

3. Information related to any administrative, civil or criminal findings made by any governmental jurisdiction concerning the person; and

4. Any other information concerning the person that the Registry or Commissioner may require.

(Added to NRS by 2023, 2861)

1. Each licensee shall register with and maintain a valid unique identifier with the Registry.

2. The Commissioner may issue a license through the Registry.

3. To the extent that the Commissioner has delegated to the Registry any of his or her duties with respect to the issuance and renewal of a license as authorized by this chapter, any reference to the Commissioner in this chapter shall be deemed to be a reference to the Registry.

4. As used in this section, “unique identifier” means a number or other identifier assigned by the protocols of the Registry.

(Added to NRS by 2023, 2862)

NRS 670B.310 Surrender of license: Required upon cessation of student loan servicing; notice to Commissioner; liability for acts or omissions occurring before surrender of license.

1. Not later than 15 days after a licensee ceases to engage in the business of student loan servicing in this State for any reason, including, without limitation, a business decision to terminate operations in this State, license revocation, bankruptcy or voluntary dissolution, the licensee shall provide written notice of surrender to the Commissioner and shall surrender to the Commissioner its license for each location in which the licensee has ceased to engage in such business.

2. A written notice of surrender provided pursuant to subsection 1 must identify the location where the records of the licensee will be stored and the name, address and telephone number of a natural person authorized to provide access to the records.

3. The surrender of a license does not reduce or eliminate the licensee’s civil or criminal liability arising from acts or omissions occurring before the surrender of the license, including, without limitation, any administrative actions undertaken by the Commissioner to revoke or suspend a license, assess a civil penalty, order restitution or exercise any other authority provided to the Commissioner.

(Added to NRS by 2023, 2863)

NRS 670B.320 Change in information provided in application for issuance or renewal of license: Notice to Commissioner required. A licensee or an applicant for a license shall notify the Commissioner, in writing, of any change in the information provided in the initial application for a license or the most recent application for renewal of such a license, as applicable, not later than 10 business days after the occurrence of the event that results in such information becoming inaccurate.

(Added to NRS by 2023, 2863)

NRS 670B.330 Abandonment of application for license. The Commissioner may deem an application for a license abandoned if the applicant fails to respond to any request for information required pursuant to this chapter or any regulations adopted pursuant thereto. The Commissioner shall notify the applicant, in writing, that if the applicant fails to submit such information not later than 60 days after the date on which such a request for information was made, the application shall be deemed abandoned. Any fees paid before the date an application is deemed abandoned pursuant to this section must not be refunded. Abandonment of an application pursuant to this section does not preclude the applicant from submitting a new application for a license pursuant to this chapter.

(Added to NRS by 2023, 2863)

1. A licensee shall not act as a student loan servicer or engage in student loan servicing under any other name or at any other place of business than that identified in the license.

2. The licensee must notify the Commissioner in advance of any change of location of a place of business of the licensee.

3. Only one place of business may be maintained under one license, but the Commissioner may issue more than one license to the same licensee upon the licensee’s application for a license for each place of business.

4. A license is not transferable or assignable.

(Added to NRS by 2023, 2863)

Payment of Assessments and Fees

NRS 670B.350 Payment of assessments. Each licensee shall pay, in addition to any other assessment, fee or cost required pursuant to this chapter:

1. The assessment levied pursuant to NRS 658.055 to cover all the costs related to the employment by the Commissioner of a certified public accountant and the performance by the certified public accountant of independent audits and examinations; and

2. The assessment levied pursuant to NRS 658.098 to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division of Financial Institutions.

(Added to NRS by 2023, 2872)

NRS 670B.360 Automatic suspension or refusal to issue or renew license upon dishonored payment; notice and opportunity for hearing. If the Commissioner determines that a check or other method of payment which is provided to the Commissioner to pay any fee required pursuant to this chapter has been returned to the Commissioner or otherwise dishonored because the person had insufficient money or credit with the drawee or financial institution to pay the check or other method of payment or because the person stopped payment on the check or other method of payment, the Commissioner shall automatically refuse to issue, suspend or refuse to renew the license, as applicable. The Commissioner must give the licensee reasonable advance notice of this automatic action and an opportunity for a hearing.

(Added to NRS by 2023, 2863)

NRS 670B.370 Fees paid are nonrefundable. All fees paid pursuant to this chapter are nonrefundable, including, without limitation, if a license is surrendered, revoked or suspended before the expiration of the period for which it was issued.

(Added to NRS by 2023, 2874)

Regulation of Practices

1. Except to the extent inconsistent with federal law or regulation, a student loan servicer shall:

(a) Respond to any written inquiry from a student loan borrower or the representative of a student loan borrower by:

(1) Acknowledging receipt of the inquiry within 10 business days; and

(2) Providing information relating to the inquiry, and, if applicable, the action the student loan servicer will take to correct the account or an explanation of the student loan servicer’s position that the student loan borrower’s account is correct, within 30 business days.

(b) Inquire of a student loan borrower how to apply an overpayment to a student education loan. A student loan borrower’s instruction on how to apply an overpayment to a student education loan must stay in effect for any future overpayments during the term of the student education loan unless the student loan borrower provides different instructions. For the purposes of this paragraph, “overpayment” means a payment on a student education loan that is in excess of the monthly amount due from the student loan borrower on the student education loan, commonly referred to as a prepayment.

(c) Apply a partial payment from a student loan borrower on a student education loan in a manner that minimizes late fees and negative credit reporting. If there are multiple loans on a student loan borrower’s account at an equal stage of delinquency, a student loan servicer shall satisfy the requirements of this subsection by applying the partial payment to satisfy as many individual loan payments as possible on the student loan borrower’s account. For purposes of this subsection, “partial payment” means a payment to a student education loan account that contains multiple individual loans if the payment is in an amount less than the amount necessary to satisfy the outstanding payment due on all loans in the student education loan account, commonly referred to as an underpayment.

2. If the sale, assignment or other transfer of the servicing of a student education loan results in a change in the identity of the person to whom a student loan borrower is required to send payments or direct any communication concerning the student education loan:

(a) As a condition of a sale, an assignment or any other transfer of the servicing of a student education loan, require the new student loan servicer to honor all benefits originally represented as available to the student loan borrower during the repayment of the student education loan and preserve the availability of those benefits, including, without limitation, any benefits for which the student loan borrower has not yet qualified;

(b) Transfer to the new student loan servicer for the student education loan all information regarding the student loan borrower, the account of the student loan borrower and the student education loan of the student loan borrower. The information must include, without limitation, the repayment status of the student loan borrower and any benefits associated with the student education loan of the student loan borrower; and

(c) Complete the transfer of information required by paragraph (b) within 45 calendar days after the sale, assignment or other transfer of the servicing of the student education loan.

3. A student loan servicer who obtains the right to service a student education loan shall adopt policies and procedures to verify that the student loan servicer has received all information regarding the student loan borrower, the account of the student loan borrower and the student education loan of the student loan borrower including, without limitation, the repayment status of the student loan borrower and any benefits associated with the student education loan of the student loan borrower.

4. A student loan servicer shall evaluate a student loan borrower for eligibility for an income-driven repayment program before placing the student loan borrower in forbearance or default if an income-driven repayment program is available to the student loan borrower.

(Added to NRS by 2023, 2864)

NRS 670B.390 Maintenance and availability of records concerning student education loans.

1. Except to the extent inconsistent with federal law or regulation, a student loan servicer shall maintain a record of each transaction relating to a student education loan for not less than 2 years following the final payment on the student education loan or the assignment of the student education loan, whichever occurs first, or such longer period as may be required by any other provision of law.

2. Upon the request of the Commissioner, a person required to maintain records pursuant to subsection 1 shall make such records available to the Commissioner, or send the records to the Commissioner, in the manner required by the Commissioner, not later than 5 business days after requested by the Commissioner. Upon the person’s request, the Commissioner may allow additional time to make the records available to the Commissioner or to send the records to the Commissioner.

(Added to NRS by 2023, 2865)

NRS 670B.400 Prohibited acts. A student loan servicer shall not:

1. Directly or indirectly employ any scheme, device or artifice to defraud or mislead a student loan borrower.

2. Engage in any unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a student education loan, including, without limitation, misrepresenting the amount, nature or terms of any fee or payment due or claimed to be due on a student education loan, the terms and conditions of the loan agreement or the student loan borrower’s obligations under the loan.

3. Obtain property by fraud or misrepresentation.

4. Misapply student education loan payments to the outstanding balance of a student education loan.

5. Provide inaccurate information to a credit bureau in a manner which may harm a student loan borrower’s creditworthiness.

6. Fail to report both the favorable and unfavorable payment history of the student loan borrower to a nationally recognized consumer credit bureau at least annually if the student loan servicer regularly reports information to a credit bureau.

7. Refuse to communicate with an authorized representative of the student loan borrower if the authorized representative:

(a) Provides a written authorization signed by the student loan borrower; and

(b) Complies with any reasonable procedures which may be adopted by the student loan servicer to verify that the representative is in fact authorized to act on behalf of the student loan borrower.

8. Make any false statement or omission of a material fact in connection with any information or reports filed with a governmental agency or in connection with any investigation conducted by the Commissioner or another governmental agency.

9. Fail to respond within 15 business days to communications from the Commissioner, or within a shorter, reasonable period of time as may be requested by the Commissioner.

10. Fail to respond within 15 business days to a consumer complaint submitted to the student loan servicer by the Commissioner or the Office of the Attorney General. If necessary, the student loan servicer may request additional time to respond to the complaint, up to a maximum of 45 business days, provided that the request is accompanied by an explanation of why additional time is reasonable and necessary.

11. Engage in abusive acts or practices when servicing a student education loan in this State. An act or practice is abusive in connection with the servicing of a student education loan if that act or practice:

(a) Materially interferes with the ability of a student loan borrower to understand a term or condition of a student education loan; or

(b) Takes unreasonable advantage of any of the following:

(1) A lack of understanding on the part of a student loan borrower of the material risks, costs or conditions of the student education loan;

(2) The inability of a student loan borrower to protect the interests of the student loan borrower when selecting or using a student education loan or feature, term or condition of a student education loan; or

(3) The reasonable reliance by the student loan borrower on a person engaged in servicing a student education loan to act in the interests of the student loan borrower.

(Added to NRS by 2023, 2865)

PRIVATE EDUCATION LENDERS

NRS 670B.450 Private education lender not exempt from other licensing requirements; duty of Commissioner to determine particular license required. NRS 670B.450 to 670B.510, inclusive, do not exempt a private education lender from complying with any requirement to obtain a license imposed by any other specific statute, including, without limitation, the provisions of chapter 675 of NRS. The Commissioner shall determine the particular license that a private education lender is required to obtain.

(Added to NRS by 2023, 2871)

NRS 670B.460 Maintenance and accessibility of records; retention of loan file. A private education lender shall:

1. Establish and maintain records and permit the Division of Financial Institutions to access and copy any records required to be maintained pursuant to the provisions of this chapter; and

2. Retain a loan file, including, without limitation, any record specified for retention by regulations adopted by the Commissioner, for not less than 6 years after the termination of the private education loan account.

(Added to NRS by 2023, 2871)

1. Before the extension of a private education loan that requires a cosigner, a private education lender shall deliver to the cosigner information concerning, without limitation:

(a) How the private education loan obligation will appear on the cosigner’s credit;

(b) How the cosigner will be notified if the private education loan becomes delinquent;

(c) How the cosigner can cure a delinquency in order to avoid negative credit furnishing and loss of cosigner release eligibility; and

(d) The eligibility of the cosigner to be released from his or her obligation on the private education loan, including, without limitation, the number of on-time payments and any other criteria required to approve the release of the cosigner from his or her obligation on the private education loan.

2. For any private education loan that obligates a cosigner, a private education lender shall provide the private education loan borrower and the cosigner an annual written notice containing information about the release of the cosigner from his or her obligation on the private education loan, including, without limitation:

(a) Any administrative, non-judgmental criteria the private education lender requires to approve the release of the cosigner from the private education loan obligation; and

(b) The process for applying for cosigner release.

3. If the private education loan borrower has met the applicable payment requirements to be eligible for cosigner release, the private education lender shall send the private education loan borrower and the cosigner a written notification by mail and by electronic mail, if the private education loan borrower or cosigner has elected to receive electronic communications from the private education lender, informing the private education loan borrower and cosigner that the payment requirement to be eligible for cosigner release has been met. The notification must also include information about any additional criteria to qualify for cosigner release and the procedure to apply for cosigner release.

4. A private education lender shall provide written notice to a private education loan borrower who applies for cosigner release but whose application is incomplete. The written notice must include a description of the information needed to consider the application complete and the date by which the applicant must furnish the missing information.

5. Within 30 days after a private education loan borrower submits a completed application for cosigner release, the private education lender shall send the private education loan borrower and cosigner a written notice that informs the private education loan borrower and cosigner whether the application for cosigner release has been approved or denied. If the private education lender denies a request for cosigner release, the private education loan borrower may request any documents or information used in the determination, including, without limitation, the credit score threshold used by the private education lender, the private education loan borrower’s consumer credit report, the private education loan borrower’s credit score and any other documents specific to the private education loan borrower. The private education lender shall also provide any notices of adverse action required under applicable federal law if the denial is based in whole or in part on any information contained in a consumer credit report.

6. In response to a written or oral request for cosigner release, a private education lender shall provide the information described in subsection 2.

7. A private education lender shall not impose any restriction that permanently bars a private education loan borrower from qualifying for cosigner release, including, without limitation, restricting the number of times a private education loan borrower may apply for cosigner release.

8. A private education lender shall not impose any negative consequences on any private education loan borrower or cosigner during the 60 days following the issuance of the notice provided pursuant to subsection 4 or until the private education lender makes a final determination about a private education loan borrower’s application for cosigner release. For the purposes of this subsection, “negative consequences” includes, without limitation, the imposition of additional eligibility criteria, negative credit reporting, lost eligibility for cosigner release, late fees, interest capitalization or other financial injury.

9. For any private education loan made on or after January 1, 2024, a private education lender shall not require more than 12 consecutive, on-time payments as criteria for cosigner release. Any private education loan borrower who has paid the equivalent of 12 months of principal and interest payments within any 12-month period shall be deemed to have satisfied the consecutive, on-time payment requirement, even if the private education loan borrower has not made payments monthly during the 12-month period.

10. If a private education loan borrower or cosigner requests a change in terms that restarts the count of consecutive, on-time payments required for cosigner release, the private education lender shall notify the private education loan borrower and cosigner in writing of the impact of the change and provide the private education loan borrower or cosigner the right to withdraw or reverse the request to avoid that impact.

11. A private education loan borrower has the right to request an appeal of a private education lender’s determination to deny a request for cosigner release, and the private education lender shall permit the private education loan borrower to submit additional documentation evidencing the private education loan borrower’s ability, willingness and stability to meet the payment obligations. The private education loan borrower may request review of the determination made regarding cosigner release by another employee of the private education lender.

12. A private education lender shall establish and maintain a comprehensive record management system reasonably designed to ensure the accuracy, integrity and completeness of data and other information about cosigner release applications and to ensure compliance with applicable state and federal laws, including, without limitation, the federal Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 et seq., and the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. This system must include the number of cosigner release applications received, the approval and denial rate and the primary reasons for any denial.

13. A private education lender shall provide a cosigner with access to all documents or records related to the cosigned private education loan that are available to the private education loan borrower.

14. If a private education lender provides electronic access to documents and records for a private education loan borrower, the private education lender shall provide equivalent electronic access to the cosigner.

(Added to NRS by 2023, 2866)

NRS 670B.480 Restrictions on acceleration of payments on private education loan and placement of loan or account into default; prohibited acts upon death or bankruptcy of cosigner.

1. A private education loan made on or after January 1, 2024, may not include a provision that allows the private education lender to accelerate, in whole or in part, payments on the private education loan, except in cases of payment default. A private education lender shall not place any loan or account into default or accelerate a loan for any reason, other than for payment default.

2. A private education loan made before January 1, 2024, may permit the private education lender to accelerate payments only if the promissory note or loan agreement explicitly authorizes an acceleration and only for the reasons stated in the note or agreement.

3. In the event of the death or bankruptcy of a cosigner:

(a) The private education lender shall not attempt to collect against the cosigner’s estate or bankruptcy estate, other than for payment default.

(b) Upon receiving notification of the death or bankruptcy of a cosigner, when the private education loan is not more than 60 days delinquent at the time of the notification, the private education lender shall not change any terms or benefits under the promissory note, repayment schedule, repayment terms or monthly payment amount or any other provision associated with the loan.

4. A private education lender shall not place any private education loan or account into default or accelerate a private education loan while a private education loan borrower is seeking a loan modification or enrollment in a flexible repayment plan, except that a private education lender may place a loan or account into default or accelerate a loan for payment default 90 days following the private education loan borrower’s default.

(Added to NRS by 2023, 2868)

NRS 670B.490 Duties and prohibited acts in event of total and permanent disability of private education loan borrower or cosigner.

1. A private education lender, when notified of the total and permanent disability of a private education loan borrower or cosigner, shall release any cosigner from the obligations of the cosigner under a private education loan. The private education lender shall not attempt to collect a payment from a cosigner following a notification of total and permanent disability of the private education loan borrower or cosigner.

2. A private education lender shall notify a private education loan borrower and cosigner for a private education loan if either a private education loan borrower or cosigner is released from the obligations of the private education loan under this section, within 30 days after the release.

3. A private education lender that extends a private education loan shall provide the private education loan borrower an option to designate an individual to have the legal authority to act on behalf of the private education loan borrower with respect to the loan in the event of the total and permanent disability of the private education loan borrower.

4. If a cosigner is released from the obligations of a private education loan pursuant to subsection 1, the private education lender shall not:

(a) Require the private education loan borrower to obtain another cosigner on the private education loan obligation.

(b) Declare a default or accelerate the debt against the private education loan borrower on the sole basis of the release of the cosigner from the private education loan obligation.

5. A private education lender, if notified of the total and permanent disability of a private education loan borrower:

(a) Shall discharge the liability of the private education loan borrower and cosigner on the private education loan; and

(b) Shall not:

(1) Attempt to collect on the outstanding liability of the private education loan borrower or cosigner; or

(2) Monitor the disability status of the private education loan borrower at any point after the date of discharge.

6. As used in this section, “total and permanent disability” means that a person:

(a) Has been determined by the United States Secretary of Veterans Affairs to be unemployable due to a service-connected disability; or

(b) Is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 12 months or can be expected to last for a continuous period of not less than 12 months.

(Added to NRS by 2023, 2869)

1. A private education lender shall, before offering a person a private education loan that is being used to refinance an existing private education loan, provide to the person a disclosure that informs the person that benefits and protections applicable to the existing private education loan may be lost due to the refinancing. The information must be provided on a one-page information sheet in at least 12-point font and must be written in simple, clear, understandable and easily readable language.

2. If a private education lender offers any private education loan borrower flexible repayment options in connection with a private education loan, those flexible repayment options must be made available to all private education loan borrowers of loans by the private education lender. A private education lender shall:

(a) Provide on its Internet website a description of any flexible repayment options offered by the private education lender for private education loans;

(b) Establish and consistently implement policies and procedures that facilitate the evaluation of private education loan flexible repayment option requests, including, without limitation, policies and procedures that provide accurate information regarding any private education loan flexible repayment option that:

(1) May be available to the private education loan borrower through the promissory note; or

(2) May have been marketed to the private education loan borrower through marketing materials;

(c) If the private education lender offers flexible repayment options, consistently present and offer similar options to private education loan borrowers with similar financial circumstances; and

(d) Annually issue a letter to the private education loan borrower and cosigner that sets forth, without limitation:

(1) The total cumulative principal and interest amount of all private education loans owed by the private education loan borrower or cosigner to the private education lender;

(2) The total payoff amount of the loans listed in subparagraph (1); and

(3) Estimated monthly payment amounts if the private education loan borrower or cosigner were to enroll in a flexible repayment plan offered by the private education lender.

(Added to NRS by 2023, 2870)

NRS 670B.510 Prohibited acts. A private education lender shall not:

1. Offer any private education loan that does not comply with the provisions of NRS 670B.470 to 670B.510, inclusive, or that is in violation of any other state or federal law.

2. Engage in any unfair, deceptive or abusive act or practice.

3. Make a private education loan upon the security of any assignment of or order for the payment of any salary, wages, commissions or other compensation for services earned, or to be earned. No assignment or order to secure a private education loan may be taken by a private education lender in connection with a private education loan, or for the enforcement or repayment thereof. Any assignment or order taken or given to secure any loan made by any lender pursuant to NRS 670B.470 to 670B.510, inclusive, is void.

4. Make, advertise, print, display, publish, distribute, electronically transmit, telecast or broadcast in any manner any statement or representation that is false, misleading or deceptive.

(Added to NRS by 2023, 2870)

MISCELLANEOUS PROVISIONS

NRS 670B.550 Compliance with applicable federal laws and regulations required; violation of such federal law or regulation deemed violation of chapter. A student loan servicer and private education lender shall comply with all applicable federal laws and regulations relating to student loan servicing or lending, including, without limitation, the Truth in Lending Act, 15 U.S.C. §§ 1601 et seq., and the regulations promulgated thereunder. In addition to any other remedies provided by law, a violation of any such federal law or regulation shall be deemed a violation of this chapter.

(Added to NRS by 2023, 2874)

ADMINISTRATION AND ENFORCEMENT

NRS 670B.600 Regulations. The Commissioner shall adopt any regulations necessary to carry out the provisions of this chapter.

(Added to NRS by 2023, 2875)

NRS 670B.610 Administration, accounting and use of money received by Commissioner; nonreversion; interest and income; claims.

1. The Commissioner shall:

(a) Administer and account for separately the money received pursuant to this chapter.

(b) Use the money received pursuant to this chapter for the purposes set forth in this chapter.

2. Any money that remains in the account created pursuant to subsection 1 at the end of the fiscal year does not revert to the State General Fund, and the balance of the account must be carried forward to the next fiscal year.

3. Any interest or income earned on the money in the account created pursuant to subsection 1 must be credited to the account, after deducting any applicable charges.

4. Any claims against the account must be paid as other claims against the State are paid.

(Added to NRS by 2023, 2857)

1. The Commissioner may monitor the market for the provision of student loan servicing and student education loans, including, without limitation, private education loans, to identify risks to consumers. In conducting such monitoring, the Commissioner may compile and analyze data and other information to assess:

(a) The likely risk and costs to consumers associated with using or repaying a student education loan or with the servicing of a student education loan;

(b) The understanding by consumers of the risks of a student education loan or the servicing of a student education loan;

(c) The legal protections applicable to the offering or provision of a student education loan or the servicing of a student education loan and the adequacy of those legal protections to protect consumers;

(d) The rates of growth in the offering or provision of a student education loan or the servicing of that loan;

(e) The extent, if any, to which the risks of a student education loan or the servicing of a student education loan disproportionately affect traditionally underserved consumers; and

(f) The type, number and other pertinent characteristics of private education lenders and student loan servicers in this State.

2. To the extent that state law is not preempted by federal law, in conducting monitoring or assessment pursuant to this section the Commissioner may gather information regarding the organization, business conduct, markets and activities of private education lenders and student loan servicers in this State. The Commissioner may enter into contracts to perform the activities authorized by this section, as necessary.

3. In order to gather information described in subsection 2, the Commissioner may:

(a) Gather and compile information from a variety of sources, including, without limitation, consumer complaints, voluntary surveys and voluntary interviews of consumers, surveys and interviews of private education lenders and student loan servicers and available databases; and

(b) Require persons engaged in private education lending or student loan servicing in this State to file, under oath or otherwise, in the form and within a reasonable period of time as the Commissioner may prescribe, any annual or special reports or answers in writing to specific questions that the Commissioner deems necessary to carry out the provisions of this section.

4. In addition to any other monitoring activities authorized by this section, the Commissioner may gather and compile information from private education lenders and student loan servicers to assemble data concerning the total size of the student education loan market in this State, the servicing of student education loans owed by borrowers at risk of default, the servicing of private education loans owed by borrowers experiencing financial distress and the servicing of federal student education loans for borrowers who seek to repay their loans under an income-driven repayment plan, as described in 20 U.S.C. §§ 1070 et seq.

5. The Commissioner may, on a quarterly basis, develop and publicize metrics based on data collected pursuant to this section. Such metrics may include, without limitation, relevant performance metrics concerning specifically identified private education lenders and student loan servicers.

6. In conducting the activities authorized by this section, the Commissioner may meet and confer with the Student Loan Ombudsman, designated pursuant to NRS 226.560, the Office of the Attorney General and the Nevada System of Higher Education.

(Added to NRS by 2023, 2872)

NRS 670B.630 Complaints: Submission to Commissioner for investigation; Division of Financial Institutions required to share with Office of the Attorney General.

1. The Student Loan Ombudsman designated pursuant to NRS 226.560 or a member of the public may submit a complaint concerning a student loan servicer to the Commissioner for investigation pursuant to NRS 670B.640.

2. The Division of Financial Institutions shall share a complaint submitted pursuant to this section with the Office of the Attorney General in accordance with NRS 226.575.

(Added to NRS by 2023, 2866)

NRS 670B.640 Investigations and examinations: Conduct; frequency; fees. In addition to any other authority provided under this title, the Commissioner may conduct investigations and examinations as follows:

1. For purposes of initial licensing, license renewal, license suspension, license revocation or termination or general or specific inquiry or investigation to determine compliance with this chapter, the Commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence, including, without limitation:

(a) Criminal, civil and administrative history information;

(b) Personal history and experience information, including, without limitation, independent credit reports obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681a; and

(c) Any other documents, information or evidence the Commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence.

2. For the purposes of investigating violations or complaints arising under this chapter or for the purposes of examination, the Commissioner may review, investigate or examine any student loan servicer or other person subject to this chapter as often as necessary in order to carry out the purposes of this chapter. The Commissioner may direct, subpoena or order the attendance of and examine under oath any person whose testimony may be required regarding a student education loan, the business of a student loan servicer or the subject matter of any examination or investigation, and may direct, subpoena or order such a person to produce books, accounts, records, files and any other documents the Commissioner deems relevant to the inquiry.

3. In making any examination or investigation authorized by this section, the Commissioner may control access to any documents and records of a student loan servicer or other person under examination or investigation. The Commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, a person shall not remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the Commissioner. Unless the Commissioner has reasonable grounds to believe the documents or records of the student loan servicer or other person under examination or investigation have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of this chapter, the student loan servicer, the other person under examination or investigation or the owner of the documents and records must be allowed access to the documents or records as necessary to conduct ordinary business affairs.

4. At least once each year, the Commissioner or his or her authorized representative shall conduct an investigation and examination of each licensee pursuant to this section.

5. In addition to the fees prescribed in NRS 670B.210, if it becomes necessary to examine or investigate the books and records of a licensee pursuant to this chapter, the licensee shall be liable for and shall pay to the Commissioner, within 30 days after the presentation of an itemized statement therefor, an amount determined by the Commissioner at the rate for supervision and examination of a financial institution established and, if applicable, adjusted pursuant to NRS 658.101.

(Added to NRS by 2023, 2871)

NRS 670B.650 Powers of Commissioner related to conducting examinations and investigations, sharing resources, documents, records, information and evidence and standardizing methods and procedures. To carry out the purposes of this chapter, the Commissioner may:

1. Retain attorneys, accountants or other professionals and specialists as examiners, auditors or investigators to conduct or assist in the conduct of examinations or investigations;

2. Enter into agreements or relationships with other governmental officials or regulatory associations to improve efficiency and reduce any regulatory burden by sharing resources, standardizing or making uniform any applicable methods or procedures and sharing documents, records, information or evidence obtained pursuant to this chapter;

3. Use, hire, contract or employ publicly or privately available analytical systems, methods or software to examine or investigate a student loan servicer or other person under examination or investigation;

4. Accept and rely on examination or investigation reports made by other governmental officials, within or outside this State; and

5. Accept audit reports made by an independent certified public accountant for a student loan servicer or other person under examination or investigation in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in any report of examination, report of investigation or other writing of the Commissioner.

(Added to NRS by 2023, 2873)

NRS 670B.660 Authority of Commissioner unaffected by student loan servicer or other person under examination or investigation acting or claiming to act under authority of other laws. The authority of the Commissioner pursuant to this chapter with regard to a student loan servicer or other person under examination or investigation remains in effect, without regard to whether the student loan servicer or other person acts or claims to act under any other licensing or registration law of this State, or claims to act without such authority.

(Added to NRS by 2023, 2874)

NRS 670B.670 Knowingly withholding, abstracting, removing, mutilating, destroying or secreting information related to investigation or examination prohibited. A student loan servicer or other person under examination or investigation pursuant to this chapter shall not knowingly withhold, abstract, remove, mutilate, destroy or secrete any books, records, computer records or other information related to an investigation or examination conducted pursuant to this chapter.

(Added to NRS by 2023, 2874)

NRS 670B.680 Confidentiality and disclosure of certain books, records and information obtained by Division of Financial Institutions. Except as otherwise provided in this section and NRS 239.0115, any books, records or other information obtained by the Division of Financial Institutions in connection with an application, complaint, audit, investigation or examination pursuant to this chapter, or in response to a subpoena, are confidential and may be disclosed only to:

1. The Division of Financial Institutions, any authorized employee or representative of the Division of Financial Institutions and any state or federal agency investigating the activities covered under the provisions of this chapter; and

2. Any person if the Commissioner, in his or her discretion, determines that the interests of the public that would be protected by disclosure outweigh the interest of any person in the confidential information not being disclosed.

(Added to NRS by 2023, 2875)

NRS 670B.690 Denial, suspension, revocation or refusal to renew license: Authority of Commissioner; grounds. The Commissioner may, as applicable, deny an application for a license issued pursuant to this chapter or suspend, revoke or refuse to renew a license issued pursuant to this chapter if the Commissioner finds that:

1. The applicant, licensee or a control person of the applicant or licensee has violated any provision of this chapter or any regulation adopted pursuant thereto;

2. With regard to a licensee or a control person of the licensee, any fact or condition exists which, if it had existed at the time of the original application for the license, would have resulted in a denial of the application; or

3. The licensee has failed to pay, within 30 days after receiving an itemized statement or other demand for payment from the Commissioner, any assessment, fee or cost required pursuant to this chapter.

(Added to NRS by 2023, 2874)

NRS 670B.700 Action to restrain or prevent violation or continuance of violation of chapter. The Attorney General may bring an action in the name of the State of Nevada to restrain or prevent any violation of this chapter or any continuance of any such violation.

(Added to NRS by 2023, 2875)

NRS 670B.710 Civil action against student loan servicer or private education lender for violation of chapter; relief; treble damages.

1. A person who suffers damage as a result of the failure of a student loan servicer or private education lender to comply with the provisions of this chapter may bring an action on his or her own behalf and on behalf of a similarly situated class of persons against that student loan servicer or private education lender to recover or obtain:

(a) Actual damages, but in no case may the total award be less than $500 per plaintiff, per violation;

(b) An order enjoining the methods, acts or practices;

(d) Punitive damages;

(e) Attorney’s fees; and

(f) Any other relief that the court deems proper.

2. In addition to any other remedies provided by this section or otherwise provided by law, whenever it is proven by a preponderance of the evidence that a student loan servicer or private education lender has engaged in conduct that substantially interferes with a student loan borrower’s right to a flexible payment arrangement, right to the forgiveness, cancellation or discharge of a loan or right to any other financial benefit, as established under the terms of a student loan borrower’s promissory note or under the Higher Education Act of 1965, 20 U.S.C. §§ 1071 et seq., and the regulations promulgated thereunder, the court shall award treble actual damages to the plaintiff, but in no case may the total award of damages be less than $1,500 per plaintiff, per violation.

(Added to NRS by 2023, 2874)

1. A violation of any provision of this chapter may also be a violation of chapter 598B of NRS, the Nevada Equal Credit Opportunity Law.

2. In addition to any other remedies provided by this section or otherwise provided by law, whenever it is proven by a preponderance of the evidence in a civil action that a person or entity that makes a student education loan, including, without limitation, a private education lender, has filed information required pursuant to this chapter that is false, the court shall award treble damages to the student loan borrower, including, without limitation, a private education loan borrower, but in no case may the total award of damages in the action be less than $1,500.

3. The rights, remedies and penalties provided by this chapter are cumulative and do not abrogate and are in addition to any other rights, remedies and penalties that may exist at law or in equity.

(Added to NRS by 2023, 2875)