6 Key Changes To Nevada’s New Collection Agency Licensing Act

June 22, 2023
By Cornerstone Staff

Nevada Senate Bill No. 276 Changes

The Nevada Senate has modernized Nevada’s Collection Agency Licensing Act. The change has been signed by Governor Joe Lombardo (June 16, 2023) and will go into effect October 1, 2023. The legislation was developed and introduced at the request of the Receivables Management Association International (RMAI).

 

Notable changes include:

Debt buyers are now required to have a Collection Agency License. The definition of “Collection Agency” was updated to include Debt Buyers, thus requiring their licensure (Section 14 & 18). A debt buyer and an affiliate of a debt buyer may share a license (Section 18 & 39).

Per the RMAI, “Existing debt buyers need only apply for the Collection Agency License on or before January 1, 2024, and may continue operating without a collection agency license until their new license is approved or denied.”

Branch office licenses are no longer required. Instead, the collection agency should notify the Commissioner of the location of the branch office for any new offices. Branches should be listed on new applications (See Section 25).

Remote work is now authorized. Collection Agencies may allow employees to work from remote locations provided they comply with a variety of new requirements regarding record maintenance, data protection, physical and IT security, and certain collection agent training and signed agreements. (See Section 7-10 for full details.) 

The Qualified Manager requirement has been renamed as Compliance Manager. Each collection agency must have a single Compliance Manager (CM). CM is required to equally share responsibility only for the collection operation of the collection agency, including branches. Per the RMAI, “Individuals currently holding a Qualified Manager certificate will be deemed qualified to be a Compliance Manager.” (See Section 16 and 26-30 for full details.)

License numbers required to be displayed on websites. The Collection Agency License Number and Compliance Manager certificate identification number must be displayed on any internet website maintained by the Collection Agency. Collection Agencies are no longer required to display a physical license on the wall of the place of business of the agency (See Section 6).

Foreign Collection Agencies are now treated the same as Domestic Foreign Collection Agencies. Both agencies will be licensed in the same manner (See Section 52).

To view all changes to Nevada’s revised “Collection Agency Licensing Act,” see the full text of Senate Bill No. 276.

Author

Cornerstone Staff

Staff
| Cornerstone
Free yourself from the burden of licensing