On September 18, 2020, the State of Nevada Department of Business and Industry Financial Institutions Division (DBID) informed RMAI the state of Nevada’s temporary work from home licensing exemption had been extended through December 31, 2020.
Members will recall, in response to the State of Emergency declared by the Governor of Nevada on March 12, 2020, due to COVID-19, the Nevada Financial Institutions Division (NFID) issued a memorandum of temporary guidance to address licensing requirements for remote office locations of collection agencies effective through May 31, 2020. The memorandum essentially granted an exemption to collection agencies from the state’s licensing of branch office locations such that companies could implement a work from home policy for their employees.
When the temporary guidance expired on May 31, 2020, both in-state and out-of-state collection agencies questioned whether members collecting debt could continue to permit their remote work force to work from home. In response, the DBID announced the temporary guidance had expired and began to informally notify in-state and out-of-state collection agencies to cease collecting debt in their state unless the collection activity was performed by an agent working from a licensed, brick and mortar location (i.e. headquarters, physical business location, etc.).
So, what does this mean? Effective immediately, the state’s collection agency licensing requirements are suspended until December 31, 2020, for work from home employees. This means both in-state and out-of-state members, licensed to collect in Nevada, may assign agents who are working from home to collect debt from Nevada residents until the end of the year. However, members must be aware, the NFID may not extend this guidance past December. As such, it is imperative collection agencies begin making plans to ensure they can both comply with Nevada law and the laws of the other jurisdictions as of January 1, 2021. Questions regarding this Temporary Guidance may be directed to fidmaster@fid.state.nv.us.
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This alert is intended for members of the Receivables Management Association International and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.