Nevada Debt Settlement Laws

Debt Settlement License Registration Required:

Statute: Nev. Rev. Stat. §676A.010 et seq.

Definition: “Debt-management services” means services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions and includes credit counseling, the development and implementation of debt-management plans and debt settlement services. The term does not include:

      1.  Legal services provided in an attorney-client relationship by an attorney licensed or otherwise authorized to practice law in this State;

      2.  Accounting services provided in an accountant-client relationship by a certified public accountant licensed to provide accounting services in this State; or

      3.  Financial-planning services provided in a financial planner-client relationship by a member of a financial-planning profession whose members the Commissioner, by regulation, determines are:

      (a) Licensed by this State;

      (b) Subject to a disciplinary mechanism;

      (c) Subject to a code of professional responsibility; and

      (d) Subject to a continuing education requirement.

“Debt settlement services” means debt-management services which contemplate that:

      1.  Regular, periodic payments will be made by or on behalf of the individual to whom the services are being provided;

      2.  The individual will accumulate such payments in a bank account which is insured by the Federal Deposit Insurance Corporation, owned by the individual and not controlled by the provider; and

      3.  The individual will use the accumulated amount of the payments made pursuant to subsection 1 to make payments to:

      (a) The provider for any fees charged by the provider pursuant to NRS 676A.580; and

      (b) Creditors in order to settle the debts of the individual for less than the principal amount of the debt.