Nevada Revised Statutes 604A.5041 – Requirements for collection of defaulted loan; civil action to collect debt; venue
1. If a customer defaults on a high-interest loan, the licensee who operates a high-interest loan service may collect the debt owed to the licensee only in a professional, fair and lawful manner. When collecting such a debt, the licensee must act in accordance with and must not violate sections 803 to 812, inclusive, of the federal Fair Debt Collection Practices Act, as amended, 15 U.S.C. § 1692a to 1692j, inclusive, even if the licensee is not otherwise subject to the provisions of that Act.
Terms Used In Nevada Revised Statutes 604A.5041
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- county: includes Carson City. See Nevada Revised Statutes 0.033
- Fair Debt Collection Practices Act: The Fair Debt Collection Practices Act is a set of United States statutes added as Title VIII of the Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collection of consumer debts and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Service of process: The service of writs or summonses to the appropriate party.
2. If a licensee who operates a high-interest loan service commences a civil action against a customer to collect a debt, the court may award:
(a) Court costs;
(b) Costs of service of process, except that the costs must not exceed the amount of the fees charged by the sheriff or constable for service of process in the county where the action was brought or, if the customer was not served in that county, in the county where the customer was served; and
(c) Reasonable attorney’s fees. In determining the amount of the attorney’s fees and whether they are reasonable, the court shall consider the complexity of the case, the amount of the debt and whether the licensee could have used less costly means to collect the debt.
3. Notwithstanding any provision of NRS 66.010 to the contrary, if:
(a) A licensee who operates a high-interest loan service intends to commence a civil action in a Justice Court against a customer to collect a debt; and
(b) The customer resides in the county where the high-interest loan was made, the licensee is required to commence the civil action in the Justice Court for the township where the high-interest loan was made unless, after the date of default and before the licensee commences the civil action, the customer signs an affidavit agreeing to try the action in another Justice Court having jurisdiction over the subject matter and the parties. A licensee who operates a high-interest loan service shall not, directly or indirectly, require, intimidate, threaten or coerce a customer to sign such an affidavit.