NRS676A.540. Agreement: Contents; required provisions; prohibited provisions; provisions void if contrary to certain requirements.

      1.  An agreement must:

      (a) Be in a record;

      (b) Be dated and signed by the provider and the individual;

      (c) Include the name of the individual and the address where the individual resides;

      (d) Include the name, business address and telephone number of the provider;

      (e) Be provided to the individual before the individual assents to the agreement; and

      (f) Disclose:

             (1) The services to be provided, including, without limitation, whether the provider will provide credit counseling, develop and implement a debt-management plan, provide debt settlement services or provide any combination of these services;

             (2) The amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual;

             (3) If the agreement contemplates that the provider will develop and implement a debt-management plan or provide debt settlement services, the schedule of payments to be made by or on behalf of the individual, including the amount of each payment, the date on which each payment is due and an estimate of the date of the final payment;

             (4) If the agreement contemplates that the provider will develop and implement a debt-management plan and a plan provides for regular periodic payments to creditors:

                   (I) Each creditor of the individual to which payment will be made, the amount owed to each creditor and any concessions the provider reasonably believes each creditor will offer;

                   (II) The schedule of expected payments to each creditor, including the amount of each payment and the date on which it will be made; and

                   (III) Each creditor that the provider believes will not participate in the plan and to which the provider will not direct payment;

             (5) If the agreement contemplates that the provider will develop and implement a debt-management plan or provide debt settlement services, how the provider will comply with its obligations under subsection 1 of NRS 676A.630;

             (6) That the provider may terminate the agreement for good cause, upon return of unexpended money of the individual;

             (7) That the individual may cancel the agreement as provided in NRS 676A.550;

             (8) That the individual may terminate a plan at any time without incurring any liability as provided in subparagraph (4) of paragraph (a) of subsection 4;

             (9) That the individual may contact the Commissioner with any questions or complaints regarding the provider; and

             (10) The address, telephone number and Internet address of the website of the Commissioner.

      2.  For purposes of paragraph (e) of subsection 1, delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save and print it and the individual is notified that it is available.

      3.  If the Commissioner supplies the provider with any information required under subparagraph 10 of paragraph (f) of subsection 1, the provider may comply with that requirement only by disclosing the information supplied by the Commissioner.

      4.  An agreement must provide that:

      (a) The individual has a right to terminate the agreement at any time, without penalty or obligation or the payment of any termination fee, by giving the provider written or electronic notice, in which event:

             (1) The provider will refund all unexpended money that the provider or its agent has received from or on behalf of the individual for the reduction or satisfaction of the individual’s debt;

             (2) With respect to an agreement which contemplates that creditors will settle debts for less than the principal amount of the debt, the provider will refund 65 percent of any portion of the set-up fee that has not been credited against the settlement fee;

             (3) All powers of attorney granted by the individual to the provider are revoked and ineffective; and

             (4) The provider will cease charging a monthly service fee, other than a monthly service fee which became due before the termination of the agreement;

      (b) The individual authorizes any bank in which the provider or its agent has established a trust account to disclose to the Commissioner any financial records relating to the trust account;

      (c) The provider will notify the individual within 5 days after learning of a creditor’s final decision to reject or withdraw from a plan and that this notice will include:

             (1) The identity of the creditor; and

             (2) The right of the individual to modify or terminate the agreement; and

      (d) The individual may terminate a plan at any time without incurring any liability.

      5.  If an agreement contemplates that the provider will provide debt settlement services, the agreement may confer on a provider a power of attorney to settle the individual’s debt for not more than 50 percent of the outstanding amount of the debt. The agreement may not confer a power of attorney to settle a debt for more than 50 percent of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. The agreement must provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50 percent of the outstanding amount of the debt.

      6.  An agreement may not:

      (a) Provide for application of the law of any jurisdiction other than the United States and this State;

      (b) Except as permitted by section 2 of the Federal Arbitration Act, 9 U.S.C. § 2, or NRS 38.206 to 38.248, inclusive, contain a provision that modifies or limits otherwise available forums or procedural rights, including, without limitation, the right to trial by jury, that are generally available to the individual under law other than this chapter;

      (c) Contain a provision that restricts the individual’s remedies under this chapter or law other than this chapter; or

      (d) Contain a provision that:

             (1) Limits or releases the liability of any person for not performing the agreement or for violating this chapter; or

             (2) Indemnifies any person for liability arising under the agreement or this chapter.

      7.  All rights and obligations specified in subsection 4 and NRS 676A.550 exist even if not provided in the agreement. A provision in an agreement which violates subsection 4, 5 or 6 is void.

      (Added to NRS by 2009, 1984)