NRS 649 Collection Agency Guide

What is NRS 649?

NRS Chapter 649 is Nevada's collection agency framework. It governs licensing of collection agencies (NRS 649.135 et seq.), examination by the Nevada Financial Institutions Division (FID), trust accounting requirements, recordkeeping, disclosure to debtors, dispute handling under NRS 649.332, and special medical debt provisions added by SB 248 (NRS 649.366–649.368).

Why It Matters to Your Business

If you're placing accounts with a collection agency, you have a legal interest in confirming that the agency is properly licensed and operating in compliance. An agency operating outside NRS 649 puts your accounts at risk — your receivables could be subject to dispute, your credit reporting could be unwound, and in extreme cases your business could be drawn into litigation involving the agency's non-compliance.

Verifying Agency Licensing

• NMLS Consumer Access — Search at nmlsconsumeraccess.org by company name or NMLS ID. Vegas Valley Collection Service is NMLS ID 2364012.
• Nevada FID — The Nevada Financial Institutions Division maintains a licensee list and handles complaints against licensed agencies.
• Bond verification — Licensed agencies are required to post a surety bond. Ask the agency for proof of current bond.

Key NRS 649 Provisions for Clients

Licensing & Examination (NRS 649.135 et seq.)

Collection agencies must be licensed by the Nevada FID. Each licensed agency has a compliance manager who has passed Nevada-specific licensing requirements. The FID periodically examines licensed agencies for compliance.

Trust Accounting (NRS 649.345)

Funds collected on behalf of clients must be held in a separate trust account. Comingling of client funds with operating funds is prohibited. Trust accounts are subject to examination.

Dispute Handling (NRS 649.332)

When a debtor disputes a debt in writing, collection activity must be suspended pending verification. The agency must respond to the dispute in writing with verification. This parallels FDCPA validation requirements but adds Nevada-specific procedural elements.

Recordkeeping (NRS 649.355)

Licensed agencies must maintain detailed records of all collection activity for a defined retention period, available for examination by the FID.

Disclosure to Debtors (NRS 649.305)

Specific disclosures must accompany initial communications with debtors, including the FDCPA validation notice and Nevada-specific disclosures.

Medical Debt Provisions (NRS 649.366–649.368)

Added by SB 248. See our SB 248 Medical Debt resource for details.

Common Compliance Gaps in Out-of-State Agencies

• Missed 60-day notification — Medical accounts collected without the required notification window.
• Fee structures exceeding 5% — On medical debt, fee caps under NRS 649.368 are violated when out-of-state pricing is applied unchanged.
• Dispute responses outside Nevada timeline — NRS 649.332 has specific procedural requirements not always reflected in FDCPA-only workflows.
• Trust accounting gaps — Comingling or insufficient documentation of client funds.
• Disclosure deficiencies — Nevada-specific disclosures absent from initial communications.

What to Ask Your Agency

1. What's your Nevada FID license number and NMLS ID?
2. Who is your designated Nevada compliance manager?
3. How do you handle the SB 248 60-day notification on medical accounts?
4. How is your fee structure compliant with NRS 649.368?
5. What's your dispute response process under NRS 649.332?
6. Where are client trust funds held?
7. Have you been examined by the FID? When was your last examination?

An agency that handles these questions confidently and specifically is operating within Nevada's framework. An agency that handles them vaguely or defers to "we have other licenses" is a risk.