Payday Loan in Nevada
Legal Status: Legal
Citation:
Nev. Rev. Stat. 604A.010 et seq.
Loan Terms:
Maximum Loan Amount: 25% of expected gross monthly income
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified (After default: interest rate must be equal to or less than the prime rate at the largest bank in the State of Nevada plus 10 %)
Finance Charge for 14-day $100 loan: No Limit
APR for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified (Lenders cannot extend payment period beyond 60 days after expiration of initial loan period)
Cooling-off Period:
Repayment Plan: Yes
Collection Limits:
Collection Fees: $25 dishonored check fee (max. two fees for insufficient funds; max. one fee for closed account) Court Costs; Reasonable Attorney’s Fees; Service of process costs
Criminal Action: Prohibited (Unless customer acted with criminal intent)
Where to Complain, Get Information:
Regulator: Nevada Financial Institutions Division
Address: 2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121
Phone: (702) 486-4120
Fax: (702) 486-4563
Applicability: To check cashers and any person engage in the business of deferring deposits of checks for a fee, service charge, or other consideration. Otherwise, no usury cap applies. See Nev. Rev. Stat. § 675.040.
Exemptions: Persons doing business pursuant to the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, development corporations, mortgage brokers, mortgage bankers, thrift companies, pawnbrokers or insurance companies; a person licensed to make installment loans; a person who is primarily engaged in the retail sale of goods or services who as an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and does not hold himself out as a check-caser; a person who holds a nonrestricted gaming license while performing any act in the course of that licensed operation; a person who is exclusively engaged in a check-cashing service relating to out-of-state checks; a corporation organized pursuant to the laws of this state that has been continuously and exclusively engaged in a check-cashing service in this state since July 1, 1973.
Registration Requirements: Deferred deposit service must be registered with the Commissioner and must pay a nonrefundable registration fee of $250. Registrants must obtain a surety bond in the amount of $50,000. In lieu of any surety bond, a registrant may deposit: interest-bearing stocks; bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state, in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof.
Disclosure Requirements: Each registrant must prominently display his certificate of registration at the location where he does business; post a notice that states the fees charged for cashing checks or entering into a deferred deposit transaction; provide written notice to each customer of the fees charged for cashing checks signed by the customer prior to loan. A registrant shall provide each borrower with a written agreement, approved by the commissioner, which the borrower may keep. This agreement must comply with the TILA.
Permitted charges: A registrant may collect a $25 fee for checks not paid because of insufficient funds. Only two such fees may be charged regardless of the number of times the check is presented for payment. The registrant may immediately pursue any available collection proceedings on the amount of the loan made in the form of a deferred deposit and all accrued charges and interest that are then due upon default. The court may award collection costs, costs of service of process and reasonable attorney’s fees.
Loan terms: Licensee shall offer written repayment plan at no additional charge; offer must be available for at least 30 days after default; not later than 15 days after default must give written notice of opportunity in language in which initial transaction conducted (English/Spanish); plan must have a term of at least 90 days after default. Licensees must defer all collection activity against customers called to active duty in the military and honor the terms of any repayment plan between the licensee and customer.
Prohibited acts: A licensee shall not make a deferred deposit loan that exceeds 25% of the expected gross monthly income of the customer when the loan is made. A licensee may not make more than one deferred deposit loan to the same customer at one time unless: the total amount loaned does not exceed the loan limit; and the licensee charges the same or a lower APR for any additional loans as he charged for the initial one. If the customer provides one or more additional checks (for the additional loans) and those checks are not paid upon presentment, the licensee may only charge an NSF fee for the first check that is not paid upon presentment. It is unlawful for a licensee to use or threaten to use the criminal process to collect on a deferred deposit or to include in the written agreement a promise by the borrower to hold the lender harmless; a confession of judgment by the borrower; an assignment or order for payment of wages or other compensation due the borrower; or a waiver of any claim or defense arising out of the agreement or a waiver of any provision of this chapter. A licensee may not accept: collateral or an assignment of wages as security for a loan; a check or written authorization for an electronic transfer of money in an amount exceeding that disclosed pursuant to TILA. When collecting any defaulted loan, a licensee shall not garnish or threaten to garnish the wages already paid to a borrower for active service or contact or threaten to contact the military chain of command.
Enforcement: License revocation; cease and desist orders; injunctions.
Penalties: Civil penalties available.
Governing Law Information
