A.B. 250
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ASSEMBLY BILL NO. 250–ASSEMBLYMEMBERS GOULDING;
ANDERSON, FLANAGAN, HUNT, LA RUE HATCH AND
NGUYEN
FEBRUARY 18, 2025
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to certain debt.
(BDR 52-599)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to debt; prescribing certain requirements relating
to the collection of a debt that is the result of economic
abuse or coerced debt; requiring a reporting agency that
receives certain notice that a debt or any portion of a debt
is the result of economic abuse or coerced debt to take
certain actions; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law governs the collection of debt by certain persons in this State, 1
including, without limitation, collection agencies and private debt collectors. (See, 2
e.g., chapters 353C and 649 of NRS) Existing law also governs: (1) the reporting of 3
certain information concerning consumer credit; and (2) the recording of any such 4
information in the consumer report of a consumer. (Chapter 598C of NRS) In 5
general, sections 1 and 2 of this bill prescribe certain requirements relating to the: 6
(1) collection of a debt that is the result of economic abuse or coerced debt; and (2) 7
inclusion of certain information concerning any such debt on the consumer report 8
of a consumer. Sections 1 and 2 define the term “economic abuse” for the purpose 9
of these requirements to mean any act taken by a person to: (1) obtain control, 10
through coercion, deception, manipulation, undue influence, threats of harm, force 11
or fraud, over another person’s money, assets or property; (2) restrain, sabotage or 12
unreasonably control the ability of another person to acquire, use or maintain 13
economic resources to which the person is entitled; (3) exploit the relationship 14
between the person and another person for financial gain; or (4) exert undue 15
influence over another person’s financial decisions. Sections 1 and 2 also define 16
“coerced debt” for the purpose of these requirements to mean a debt or any part 17
thereof which is the proximate result of a person having been a victim of identity 18
theft, domestic violence, abuse, coercion, fraud, duress, threats, intimidation, 19
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manipulation or other unlawful conduct intended to induce the person to incur debt 20
against his or her own will. 21
Specifically, section 1 requires a creditor to cease any collection efforts related 22
to a debt and provide certain notice concerning the debt to certain reporting 23
agencies if a debtor: (1) asserts that all or any portion of the debt is the result of 24
economic abuse or coerced debt; and (2) provides certain notice and documentation 25
to the creditor concerning the debt. Section 1 also authorizes a creditor to seek a 26
court order declaring that a debt or any portion thereof is not the result of economic 27
abuse or coerced debt and prescribes certain requirements relating to any such 28
order. Finally, section 1 provides that a creditor who violates section 1 is liable in a 29
civil action for the violation. 30
Section 2 requires a reporting agency that receives certain notice that a debt or 31
any portion of a debt is the result of economic abuse or coerced debt to: (1) conduct 32
an investigation concerning the debt; and (2) remove from its files any reference to 33
the debt or any portion of the debt determined by the reporting agency to be the 34
result of economic abuse or coerced debt under certain circumstances. 35
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 597 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. Except as otherwise provided in subsections 4 and 5, if a 3
debtor asserts that all or any portion of a debt is the result of 4
economic abuse or coerced debt and provides notice and adequate 5
documentation to a creditor, the creditor: 6
(a) Shall: 7
(1) Immediately cease any collection efforts related to the 8
debt, including, without limitation, any effort to collect the debt 9
by: 10
(I) Garnishing the wages, bank account or personal 11
property of the debtor; or 12
(II) Bringing an action to collect the debt; 13
(2) Dismiss any action to collect the debt; and 14
(3) Return any payment made by the debtor on the debt, 15
including, without limitation, any payment executed through a 16
writ of garnishment; and 17
(b) Shall not assign or transfer any claim or account 18
associated with the debt. 19
2. In addition to the requirements prescribed by subsection 1 20
and except as otherwise provided in subsection 4, if a debtor 21
asserts that all or any part of a debt is the result of economic abuse 22
or coerced debt and provides notice and adequate documentation 23
to a creditor, the creditor shall: 24
(a) Using the contact information provided by the debtor 25
pursuant to subparagraph (4) of paragraph (b) of subsection 3, 26
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notify the debtor or person designated by the debtor to receive 1
information concerning the debt, that: 2
(1) The creditor is ceasing any collection efforts related to 3
the debt; and 4
(2) The debtor may request that the creditor provide the 5
notice required by this paragraph in writing; 6
(b) If the creditor does not own the debt, notify the owner of 7
the debt that the creditor is ceasing any collection efforts related to 8
the debt; and 9
(c) Notify any reporting agency to whom the creditor reported 10
information concerning the debt that the debt is the result of 11
economic abuse or coerced debt and request that the reporting 12
agency remove from its files any reference to the debt or any 13
portion of the debt determined by the reporting agency to be the 14
result of economic abuse or coerced debt in accordance with 15
subsection 3 of section 2 of this act. 16
3. The notice provided by a debtor to a creditor described in 17
subsection 1: 18
(a) May be provided orally or in writing; and 19
(b) Must include: 20
(1) Sufficient information for the creditor to identify any 21
claim or account associated with the debt; 22
(2) A statement that the debt is the result of economic abuse 23
or coerced debt; 24
(3) Information concerning the circumstances under which 25
the debt was incurred, if known; and 26
(4) Contact information that the creditor may use to reach 27
the debtor or a person designated by the debtor to receive 28
information concerning the debt. 29
4. If a creditor finds that the notice provided by a debtor is 30
incomplete or is not accompanied by adequate documentation, the 31
creditor shall, not later than 5 business days after receiving the 32
notice, provide to the debtor a specific description of the additional 33
information or documentation required by the creditor. A creditor 34
is not required to comply with subsection 1 until the creditor 35
receives the additional information or documentation requested. 36
5. The requirements prescribed by paragraphs (a) and (b) of 37
subsection 1 do not apply to a creditor who challenges that the 38
debt is not the result of economic abuse or coerced debt in 39
accordance with subsection 6. 40
6. If a creditor has a good faith basis to believe that all or any 41
portion of a debt is not the result of economic abuse or coerced 42
debt, the creditor may seek a court order declaring that the debt or 43
any portion of the debt is not the result of economic abuse or 44
coerced debt. In any such suit: 45
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(a) The fact that the debtor provided to the creditor the notice 1
and documentation described in subsection 1 is prima facie 2
evidence that the debt is the result of economic abuse or coerced 3
debt, which must be rebutted by the creditor. 4
(b) The court shall take appropriate steps to protect the debtor 5
and any immediate family member of the debtor from an alleged 6
perpetrator of economic abuse or coerced debt. 7
7. Nothing in this section shall be construed to prohibit a 8
creditor from taking any action to collect a debt from a perpetrator 9
of economic abuse or coerced debt. 10
8. A creditor who violates this section is liable in a civil action 11
brought pursuant to this section for actual damages, reasonable 12
attorney’s fees and any punitive damages that the facts may 13
warrant. 14
9. The provisions of this section apply to an action upon a 15
contract filed in any court in this State, regardless of whether 16
the contract contains a choice of law provision which provides that 17
the contract is to be governed or interpreted pursuant to the laws 18
of another state. 19
10. As used in this section: 20
(a) “Adequate documentation” includes, without limitation: 21
(1) A police report that identifies the debt as a result of 22
economic abuse or coerced debt and describes the circumstances 23
under which the debt was incurred. 24
(2) A report filed with the Federal Trade Commission 25
which states that the debtor is a victim of identity theft. 26
(3) An order from a court of competent jurisdiction finding 27
that the debt is the result of economic abuse or coerced debt. 28
(4) An affidavit or declaration signed under penalty of 29
perjury by a qualified third party to whom the debtor reported the 30
economic abuse or coerced debt which: 31
(I) Identifies the debt; and 32
(II) Describes the circumstances under which the debt 33
was incurred. 34
(b) “Coerced debt” means a debt or any part thereof which is 35
the proximate result of a person having been a victim of identity 36
theft, domestic violence, abuse, coercion, fraud, duress, threats, 37
intimidation, manipulation or other unlawful conduct intended to 38
induce the person to incur debt against his or her own will. 39
(c) “Collection agent” has the meaning ascribed to it in 40
NRS 649.025. 41
(d) “Creditor” means any person to whom money is owed, 42
including, without limitation, a collection agent or debt buyer. 43
(e) “Debt buyer” has the meaning ascribed to it in 44
NRS 649.031. 45
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(f) “Economic abuse” means any act taken by a person to: 1
(1) Obtain control, through coercion, deception, 2
manipulation, undue influence, threats of harm, force or fraud, 3
over another person’s money, assets or property, including, 4
without limitation by: 5
(I) Restricting the access of the person to his or her 6
money, assets, property or consumer report; 7
(II) Using the personal identifying information of the 8
person to obtain credit, a good, a service or anything of value in 9
the name of that person without his or her consent; or 10
(III) Using the money, assets or property of the person 11
without his or her consent; 12
(2) Restrain, sabotage or unreasonably control the ability of 13
another person to acquire, use or maintain economic resources to 14
which the person is entitled, including, without limitation, by: 15
(I) Depriving the person of food, shelter, clothing or 16
services which are necessary to maintain the physical or mental 17
health of the person; or 18
(II) Causing or attempting to cause another person to be 19
financially dependent on the person; 20
(3) Exploit the relationship between the person and another 21
person for financial or other personal gain; or 22
(4) Exert undue influence over another person’s financial 23
decisions, including, without limitation, by: 24
(I) Forcing the person into default on shared financial 25
obligations; 26
(II) Misusing a power of attorney, guardianship or 27
conservatorship of the person; or 28
(III) Failing to act in the person’s best financial 29
interest. 30
(g) “Immediate family member” means a parent, sibling, child 31
by blood, adoption or marriage, spouse, grandparent or 32
grandchild. 33
(h) “Qualified third party” includes a: 34
(1) Law enforcement officer; 35
(2) Provider of health care; 36
(3) Person who provides services to victims of crimes; or 37
(4) Member of the clergy of a church or religious society or 38
denomination. 39
(i) “Reporting agency” has the meaning ascribed to it in 40
NRS 598C.100. 41
Sec. 2. Chapter 598C of NRS is hereby amended by adding 42
thereto a new section to read as follows: 43
1. If a consumer asserts that all or any portion of a debt is the 44
result of economic abuse or coerced debt and provides notice and 45
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adequate documentation to a reporting agency or if the reporting 1
agency receives notice from a creditor pursuant to paragraph (c) 2
of subsection 2 of section 1 of this act, the reporting agency shall, 3
as soon as reasonably practicable after receiving the notice and 4
documentation, conduct an investigation concerning the debt. 5
2. The notice provided by a consumer to a reporting agency 6
described in subsection 1: 7
(a) May be provided orally or in writing; and 8
(b) Must include: 9
(1) Sufficient information for the reporting agency to 10
identify any account associated with the debt; 11
(2) A statement that the debt is the result of economic abuse 12
or coerced debt; 13
(3) Information concerning the circumstances under which 14
the debt was incurred, if known; and 15
(4) Contact information that the reporting agency may use 16
to reach the consumer or a person designated by the consumer to 17
receive information concerning the debt. 18
3. If the reporting agency determines, after investigation, that 19
the debt or any portion of the debt: 20
(a) Is not the result of economic abuse or coerced debt, the 21
reporting agency shall so notify the consumer. 22
(b) Is the result of economic abuse or coerced debt, the 23
reporting agency shall remove from its files any reference to the 24
debt or any portion of the debt determined by the reporting agency 25
to be the result of economic abuse or coerced debt. 26
4. As used in this section: 27
(a) “Adequate documentation” includes, without limitation: 28
(1) A police report that identifies the debt as a result of 29
economic abuse or coerced debt and describes the circumstances 30
under which the debt was incurred. 31
(2) A report filed with the Federal Trade Commission 32
which states that the consumer is a victim of identity theft. 33
(3) An order from a court of competent jurisdiction finding 34
that the debt is the result of economic abuse or coerced debt. 35
(4) An affidavit or declaration signed under penalty of 36
perjury by a qualified third party to whom the consumer reported 37
the economic abuse or coerced debt which: 38
(I) Identifies the debt as being the result of economic 39
abuse or coerced debt; and 40
(II) Describes the circumstances under which the debt 41
was incurred. 42
(b) “Coerced debt” means a debt or any part thereof which is 43
the proximate result of a person having been a victim of identity 44
theft, domestic violence, abuse, coercion, fraud, duress, threats, 45
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intimidation, manipulation or other unlawful conduct intended to 1
induce the person to incur debt against his or her own will. 2
(c) “Economic abuse” means any act taken by a person to: 3
(1) Obtain control, through coercion, deception, 4
manipulation, undue influence, threats of harm, force or fraud, 5
over another person’s money, assets or property, including, 6
without limitation by: 7
(I) Restricting the access of the person to his or her 8
money, assets, property or consumer report; 9
(II) Using the personal identifying information of the 10
person to obtain credit, a good, a service or anything of value in 11
the name of that person without his or her consent; or 12
(III) Using the money, assets or property of the person 13
without his or her consent; 14
(2) Restrain, sabotage or unreasonably control the ability of 15
another person to acquire, use or maintain economic resources to 16
which the person is entitled, including, without limitation, by: 17
(I) Depriving the person of food, shelter, clothing or 18
services which are necessary to maintain the physical or mental 19
health of the person; or 20
(II) Causing or attempting to cause another person to be 21
financially dependent on the person; 22
(3) Exploit the relationship between the person and another 23
person for financial or other personal gain; or 24
(4) Exert undue influence over another person’s financial 25
decisions, including, without limitation, by: 26
(I) Forcing the person into default on shared financial 27
obligations; 28
(II) Misusing a power of attorney, guardianship or 29
conservatorship; or 30
(III) Failing to act in the person’s best financial 31
interest. 32
(d) “Qualified third party” includes a: 33
(1) Law enforcement officer; 34
(2) Provider of health care; 35
(3) Person who provides services to victims of crimes; or 36
(4) Member of the clergy of a church or religious society or 37
denomination. 38
Sec. 3. The amendatory provisions of section 1 of this act do 39
not apply to any contract entered into before October 1, 2025, but do 40
apply to any renewal or extension of such a contract. 41
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