Existing law requires certain persons who operate a collection agency or otherwise engage in the collection of claims for others in this State to obtain a license from the Commissioner of Financial Institutions and adhere to certain other requirements. (Chapter 649 of NRS) Section 1 of this bill requires a collection agency to provide, without charge, a debtor with a: (1) payoff letter concerning a claim which is owed or asserted to be owed by the debtor not later than 10 business days after the debtor requests the payoff letter; and (2) satisfaction letter concerning a claim which is owed or asserted to be owed by the debtor not later than 5 business days after a claim has been satisfied. Section 1 defines the term: (1) “payoff letter” to mean a written communication from a collection agency containing the amount outstanding and required to be paid to satisfy a claim and certain other information relating to the claim; and (2) “satisfaction letter” to mean a written communication from a collection agency stating that a claim has been satisfied. Section 1 sets forth various requirements for the content and provision of a payoff letter or satisfaction letter and authorizes a debtor aggrieved by a violation of the requirement to provide a payoff letter or a satisfaction letter to bring a civil action against the collection agency that committed the violation. Section 2 of this bill makes a conforming change to indicate the proper placement of section 1 in the Nevada Revised Statutes. Existing law requires a collection agency, not less than 60 days before taking any action to collect a medical debt, to send by registered or certified mail to the medical debtor written notification setting forth certain information. (NRS 649.366) Section 3 of this bill removes the requirement that the written notification be sent by mail that is registered or certified.

Statutes affected:
As Introduced: 649.171
Reprint 1: 649.171, 649.366
As Enrolled: 649.171, 649.366
BDR: 649.171