NRS676A.580. Fees or charges: Restrictions.

      1.  A provider may not impose directly or indirectly a fee or other charge on an individual or receive money from or on behalf of an individual for debt-management services except as permitted by this section.

      2.  A provider may not impose charges or receive payment for debt-management services until the provider and the individual have signed an agreement that complies with NRS 676A.540 and 676A.700.

      3.  If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services or the like, except as otherwise provided in this subsection and subsection 5 of NRS 676A.700. The Commissioner may authorize a provider to charge a fee based on the nature and extent of the educational or counseling services furnished by the provider.

      4.  Subject to adjustment of dollar amounts pursuant to subsection 6 of NRS 676A.730, the following rules apply:

      (a) If an individual assents to a plan which contemplates that creditors will reduce finance charges or fees for late payment, default or delinquency, the provider may charge, not including money provided by creditors to support educational or counseling services concerning personal finance provided by nonprofit entities:

             (1) A fee not to exceed $50 for consultation, obtaining a credit report, setting up an account and the like; and

             (2) A monthly service fee, not to exceed $10 times the number of accounts remaining in a plan at the time the fee is assessed, but not more than $50 in any month.

      (b) Except as otherwise provided in subsection 5 of NRS 676A.700, if an individual does not assent to an agreement, a provider may receive for educational or counseling services it provides to the individual a fee not to exceed $100 or, with the approval of the Commissioner, a larger fee. The Commissioner may approve a fee larger than $100 if the nature and extent of the educational or counseling services warrant the larger fee.

      5.  If, before the expiration of 90 days after the completion or termination of educational or counseling services, an individual assents to an agreement, the provider shall refund to the individual any fee paid pursuant to paragraph (b) of subsection 4.

      6.  If an individual assents to an agreement which contemplates that creditors will settle debts for less than the principal amount of the debt, a provider may not request or receive payment of any fee or consideration until and unless:

      (a) The provider has settled the terms of at least one debt pursuant to a settlement agreement or other valid contractual agreement executed by the individual;

      (b) The individual has made at least one payment pursuant to that settlement agreement or other valid contractual agreement between the individual and the creditor or debt collector; and

      (c) The fee or consideration:

             (1) Bears the same proportional relationship to the total fee for settling the terms of the entire debt balance as the individual debt amount bears to the entire debt amount, in which case the individual debt amount and the entire debt amount are those owed at the time the debt was enrolled in the service; or

             (2) Is a percentage of the amount saved as a result of the settlement. The percentage charged cannot change from one individual debt to another. The amount saved is the difference between the amount owed at the time the debt was enrolled in the plan and the amount actually paid to satisfy the debt.

      7.  Subject to adjustment of the dollar amount pursuant to subsection 6 of NRS 676A.730, if a payment to a provider by an individual under this chapter is dishonored, a provider may impose a reasonable charge on the individual, not to exceed the lesser of $25 and the amount permitted by law other than this chapter.

      (Added to NRS by 2009, 1988; A 2013, 629)