Nevada Administrative Code Chapter 675 - Installment Loans
🏦 Overview of NAC Chapter 675 – Installment Loans
NAC Chapter 675 regulates the licensing, operation, and supervision of businesses engaged in making installment loans in Nevada. These loans are typically characterized by fixed repayment schedules and are not subject to the regulations governing payday loans or other short-term credit products.
📘 Key Provisions
1. Licensing Requirements
Mandatory Licensing: Any person or entity wishing to engage in the business of making installment loans in Nevada must obtain a license from the Commissioner of Financial Institutions.
Application Process: Applicants must submit a completed application form, pay the required fees, and provide necessary documentation, including financial statements and background information.
2. Operational Standards
Interest Rates and Fees: Licensees are permitted to charge interest rates and fees as specified in their loan agreements, provided they comply with applicable state laws and regulations.
Loan Terms: Loan agreements must clearly outline the terms of the loan, including the amount borrowed, interest rate, repayment schedule, and any associated fees.
Disclosure Requirements: Before executing a loan agreement, licensees must provide borrowers with a written statement detailing the terms and conditions of the loan, including the total cost of credit and any other pertinent information.
3. Consumer Protections
Prohibited Practices: The regulations prohibit certain practices, such as misleading advertising, unfair collection tactics, and the imposition of unauthorized fees.
Borrower Rights: Borrowers have the right to receive clear and accurate information about their loan terms and to be treated fairly throughout the loan process.
4. Supervision and Enforcement
Annual Examinations: The Commissioner conducts annual examinations of licensees to ensure compliance with applicable laws and regulations.
Investigative Authority: The Commissioner has the authority to investigate complaints, conduct hearings, and take enforcement actions, including the suspension or revocation of licenses, against licensees found to be in violation of the law.
⚖️ Relevant Case Law
While specific case law directly interpreting NAC Chapter 675 is limited, the following general principles apply:
Enforcement Authority: Courts have upheld the authority of the Nevada Division of Financial Institutions to regulate and enforce provisions related to installment loans, including the determination and payment of fees.
Operational Compliance: Institutions must adhere to licensing requirements, operational standards, and fee obligations as stipulated in the regulations.
Consumer Protections: The regulations aim to protect consumers by ensuring transparency and fairness in the lending process.
✅ Compliance Tips
Timely Payment of Fees: Ensure that all required fees, including annual assessments and supervision/examination fees, are paid promptly to avoid penalties.
Maintain Proper Licenses: Verify that all necessary licenses, certificates, and permits are obtained and maintained in compliance with state and local regulations.
Respond to Complaints Promptly: Address any complaints or notices from the Commissioner within the specified timeframe to avoid adverse presumptions.
Document Management: Keep accurate and up-to-date records of all documents filed with the Division, as they may be subject to public inspection.
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