Nevada Debt Collection Laws

Collection agencies and the collection agents have the hard task of trying to collect unpaid debts from borrowers who do not or oftentimes cannot afford to pay. For those who cannot pay, abusive and humiliating tactics are used as tacticts to get the money back. That is exactly the reason why federal laws like the Fair Debt Collection Practices Act and the Fair Credit Reporting Act were established. Many states have also created additional laws to protect consumers from harassment by these debt collectors and debt collecting instituations. However, financially challenged borrowers can take a step to try to take care of the debt before they get to the point of being heckled by debt collectors: they can seek debt settlement advice from debt settlement lawyers in that field with the expertise to help them avoid a lifetime of painful credit consequences.

Debt Collection in Nevada

State officials in Nevada are concerned enough about debt collection abuses to enact state laws reinforcing and in some cases expanding on the federal statutes. One key requirement in Nevada is that all collection agencies be licensed in the state to allow for better oversight and control.

Nevada Statute of Limitations

  • The statute of limitations in Nevada for filing lawsuits over oral agreements and open accounts is 4 years
  • Lawsuits over written contracts must be filed within 6 years
  • Those filed over promissory notes must be filed within 3 years

Collections Practices and Rules for Nevada

Nevada not only applies federal laws governing fair debt collection practices for collection agents and agencies, it has written its own statutes reaffirming and specifying the state's fair debt collection practices and the licensing and oversight programs put in place to ensure compliance.

Legal Collections Actions

  • Collection agents or agencies in Nevada have the right to contact borrowers within the state by phone, mail, or fax, under the oversight of the Commissioner of Financial Institutions in the state.

Illegal Collections Actions

  • Using any form of pretence, deception, subterfuge, or misrepresentation in order to collect a debt
  • Charging or collecting any additional amounts from borrowers other than what is legally permitted or specifically outlined in the original contract with the borrower and creditor
  • Transfer any claims under their oversight to another agent or agency without written consent from the creditor
  • Harass the employer of the borrower
  • Offer a borrower's claim for sale to another agent or agency, or threaten to do so, without a court order
  • Post or otherwise make known the status of a borrower's debt or include them in a list of debtor's
  • Provide a debt counselling service in conjunction with their debt collection agency in exchange for payment

Laws for Debt Harassment in Nevada

Nevada law, as well as federal laws, prohibit harassing a borrower or their employer in order to obtain payment of an outstanding debt.

Nevada Debt Negotiation and Settlement Rules

There are a number of companies today offering to help debtors consolidate or settle outstanding loans for a portion of the original amount. These businesses can often provide a valuable service in these difficult times. However, others attempt to take advantage of people in financial trouble in several ways:

  • Charging high fees for minimal service
  • Failing to complete debt repayment plans on a regular basis, but terminating those relationships after their fee is paid and before the creditors are satisfied
  • Failing to provide complete and appropriate notification of the borrower's status in a timely manner to credit reporting agencies

For those who have been taken advantage of in this way, or for those seeking reliable debt counseling or advice about contracts with these companies, there are many trustworthy debt settlement attorneys who can provide the counsel or advice borrowers seek.

Help from a Nevada Debt Collection Attorney

The challenges of financial crises can be daunting. There are many options to choose from, but determining the correct path and understanding the protections that are available is difficult for the nonprofessional. That is why it can be vital to have a debt settlement attorney on hand to provide advice and representation that can preserve a borrower's financial future.

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