Nevada Administrative Code Chapter 676A - Debt-Management Services
Nevada Administrative Code (NAC) Chapter 676A – Debt-Management Services governs the regulation, licensing, and conduct of providers offering debt-management services in the State of Nevada. This chapter implements provisions from NRS Chapter 676A, which was based on the Uniform Debt-Management Services Act.
Here's a summary of key provisions under NAC Chapter 676A:
1. Definitions
Provides detailed definitions to clarify terms used in the chapter, such as debt-management services, provider, certified counselor, and plan.
2. Licensing Requirements (NAC 676A.100 – 676A.160)
Application Procedures: Outlines the application process to become a licensed provider, including submitting background checks and financial statements.
Surety Bond: Providers must maintain a surety bond (minimum amounts prescribed) to protect consumers.
Renewal: Licenses must be renewed annually, and renewal procedures are described.
3. Provider Responsibilities (NAC 676A.170 – 676A.220)
Counselor Certification: Counselors must meet specific educational and ethical standards to be certified.
Financial Statements & Recordkeeping: Providers must maintain detailed records and submit audited financial statements annually.
Annual Reports: Required to submit data about consumer plans and operations.
4. Debt Management Plans (NAC 676A.230 – 676A.270)
Written Agreement: Providers must use a written agreement detailing services, fees, and consumer rights.
Plan Requirements: All plans must be in the best interest of the consumer, with proper disclosures.
Payment Handling: Rules for handling client funds, including fiduciary responsibilities and segregation of accounts.
5. Fees and Charges (NAC 676A.280 – 676A.300)
Limits on Fees: Establishes maximum allowable setup and monthly service fees.
Refund Policies: Requirements for refunds if services are canceled or not delivered.
6. Prohibited Acts and Enforcement (NAC 676A.310 – 676A.340)
Prohibited Practices: Bans misrepresentations, deceptive practices, and conflicts of interest.
Administrative Penalties: The Commissioner of Financial Institutions may impose fines, suspend, or revoke licenses for violations.
7. Miscellaneous Provisions
Complaints Handling: Providers must have procedures in place for responding to consumer complaints.
Advertising Regulations: Any advertisements must be truthful and not misleading.
Governing Authority:
Administered by the Nevada Financial Institutions Division under the Department of Business and Industry.
Enforces both the NAC and underlying Nevada Revised Statutes (NRS 676A).
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