Existing law governs the collection of debt by certain persons in this State, including, without limitation, collection agencies and private debt collectors. (See, e.g., chapters 353C and 649 of NRS) Section 1 of this bill establishes that, in any civil action to collect an unsecured consumer debt, a debtor may assert as an affirmative defense that the debt is a coerced debt. Section 1 also: (1) sets forth the requirements for asserting the affirmative defense of coerced debt; and (2) requires a court, upon finding that a debt is a coerced debt, to order the creditor to cease collection efforts and, if applicable, correct certain records. In addition, section 1 authorizes: (1) the creditor to join a third party who may be liable for the coerced debt or amend its complaint to assert a claim against any such person; and (2) the debtor to recover attorney's fees and costs from the person who coerced the debt. Existing law makes it a crime to issue a check or draft against insufficient or no funds with intent to defraud. (NRS 205.130) Under existing law, intent to defraud and knowledge of insufficient funds are presumed to exist if payment of the instrument is refused by the drawee when presented in the usual course of business, unless the drawer pays the full amount due within 5 days after receiving notice from the drawee or the holder. (NRS 205.132) Section 1.5 of this bill provides that, for the purpose of determining whether a check or draft is presented in the usual course of business, a check or draft that constitutes a credit instrument is deemed to be presented in the usual course of business if it is presented not more than 2 years after the date on which the credit instrument is issued.

Statutes affected:
Reprint 3: 205.132
As Enrolled: 205.132