“Pay day” loan companies are common-place in today’s society, especially in the Las Vegas Valley. If you are reading this, I bet you see at least a handful of these high-interest, short-term lenders to and from your commute to work. While virtually everyone would avoid using these services if possible, desperate times call for desperate measures. Below is a brief discussion on Nevada laws pertaining to “high-interest loans” and “title loans.”
Nevada Revised Statute Chapter 604A governs entities who offer deferred deposit loans, high-interest loans, title loans and check-cashing services. Before proceeding further a few definitions are needed:
- A “’high-interest loan’ means a loan made to a customer pursuant to a loan agreement which, under its original terms, charges an annual percentage rate of more than 40 percent.” NRS 604A.0703;
- A “title loan” means a loan made to a customer which charges an annual interest rate of more than 35% AND requires the customer to secure the loan by giving possession to the title of a vehicle or by having the company noted on the title as a lienholder. NRS 604A.105.
Among other requirements, high-interest and title loan companies are required to:
- Be licensed with the Commissioner of Financial Institutions (NRS 604A.400);
- Post their license in a every location which the entity conducts business (NRS 604A.405).
Of extreme importance to the protection of Nevada consumers, high-interest and title loan companies are required to comply with certain provisions of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692a to 1692j, even if the entity is not otherwise subject to the FDCPA. NRS 604A.415.
Additionally, an entity may not make a high-interest loan which requires any monthly payment that exceeds 25 percent of the excepted gross monthly income of the customer. NRS 604A.425.
These are but a few of the many requirements and prohibitions the state of Nevada places on high-interest and title loan companies.
If you feel you have been a victim of abusive high-interest lending, contact Cogburn Law Offices for more information. We can help.