Nevada Amends Military Lending Act Provisions
The state of Nevada has modified several provisions regarding the licensing and regulation of certain short-term loans, high-interest loans, title loans, and installment loans, including adopting some of the provisions set forth in the federal Military Lending Act. The effective dates of these provisions range from October 1, 2019 to July 1, 2020.
Required Disclosures
Prior to making a consumer credit loan to a covered service member or a dependent of a covered service member, a licensee must provide the following information, both orally and in writing: 1) a statement of the annual percentage rate of interest on the loan; 2) any disclosures required by the provisions of the Truth in Lending Act; and 3) a clear description of the payment obligations of the covered service member or the dependent of the covered service member.
Annual Percentage Rate Requirement
A licensee making a consumer credit loan to a covered service member or a dependent of a covered service member may not charge an annual percentage rate greater than the lesser of thirty-sex percent or the maximum rate provided in the federal Military Lending Act.
Loan Database
Another new provision requires the Commissioner to implement and maintain a database of all deferred deposit loans, title loans, and high-interest loans in Nevada, for purposes of ensuring compliance with existing state and federal laws. Licensees making such loans are required to report and update certain information through the database. The Commission must also establish a fee for the administration and operation of the database to be charged and collected from licensees using the database.
For the full text of Senate Bill 201, please refer to https://www.leg.state.nv.us/Session/80th2019/Bills/SB/SB201_EN.pdf
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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