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) Existing law also governs: (1) the reporting of certain information concerning consumer credit; and (2) the recording of any such information in the consumer report of a consumer. (Chapter 598C of NRS) In general, sections 1 and 2 of this bill prescribe certain requirements relating to the: (1) collection of a debt that is the result of economic abuse or coerced debt; and (2) inclusion of certain information concerning any such debt on the consumer report of a consumer. Sections 1 and 2 define the term “economic abuse” for the purpose of these requirements to mean any act taken by a person to: (1) obtain control, through coercion, deception, manipulation, undue influence, threats of harm, force or fraud, over another person's money, assets or property; (2) restrain, sabotage or unreasonably control the ability of another person to acquire, use or maintain economic resources to which the person is entitled; (3) exploit the relationship between the person and another person for financial gain; or (4) exert undue influence over another person's financial decisions. Sections 1 and 2 also define “coerced debt” for the purpose of these requirements to mean a debt or any part thereof which is the proximate result of a person having been a victim of identity theft, domestic violence, abuse, coercion, fraud, duress, threats, intimidation, manipulation or other unlawful conduct intended to induce the person to incur debt against his or her own will.
Specifically, section 1 requires a creditor to cease any collection efforts related to a debt and provide certain notice concerning the debt to certain reporting agencies if a debtor: (1) asserts that all or any portion of the debt is the result of economic abuse or coerced debt; and (2) provides certain notice and documentation to the creditor concerning the debt. Section 1 also authorizes a creditor to seek a court order declaring that a debt or any portion thereof is not the result of economic abuse or coerced debt and prescribes certain requirements relating to any such order. Finally, section 1 provides that a creditor who violates section 1 is liable in a civil action for the violation.
Section 2 requires a reporting agency that receives certain notice that a debt or any portion of a debt is the result of economic abuse or coerced debt to: (1) conduct an investigation concerning the debt; and (2) remove from its files any reference to the debt or any portion of the debt determined by the reporting agency to be the result of economic abuse or coerced debt under certain circumstances.