The Consumer Relations Consortium (CRC) has continued its efforts to provide Nevada insight into the untended consequences of its newly enacted Medical Debt Collection law (SB248) which went into effect July 1, 2021.
On June 24, 2021, the CRC sent an email to Nevada asking questions about SB248, outlining the gaps in the law, and highlighting the law's unintended harmful consequences to consumers. On July 1, 2021, Nevada responded to the CRC's questions but did not address unintended harms to consumers.
On August 31, 2021, Nevada issued proposed regulations regarding SB 248 and simultaneously asked for comments from small businesses. The CRC regulatory steering committee discussed the draft proposed regulations and on September 9, 2021, submitted this comment to the Nevada Financial Institutions Division.
In its comment, the CRC explained that the proposed regulations do not resolve the unintended harms SB248 will inflict upon consumers including the following:
- The proposed regulations do not provide a safe means for a debt collector to respond to a consumer's inquiry regarding a balance within the 60-day notice window. Debt collectors can only terminate calls instead of responding to ensure compliance.
- The proposed regulations will continue to deprive consumers of their rights under the FDCPA.
- The certified mail requirement in SB248 will harm consumers in that fewer consumers will actually receive the notice required by SB248.
- SB248 will continue to harm consumers who try to pay by mail since the proposed regulations did not provide guidance regarding how to respond to this subset of consumers.
- The proposed regulations did not resolve the undue stress consumers will suffer by requiring debt collectors to provide a credit reporting disclosure, even where the debt collector might not credit report.
On September 16, 2021, the Nevada Financial Institutions Division confirmed receipt of the CRC's comment and confirmed it will be included in the record.
About the Consumer Relations Consortium
The Consumer Relations Consortium (CRC) is a membership group for forward-thinking organizations that wish to influence the direction of collections compliance, legal strategy, and regulatory policy. The CRC is comprised of more than 60 national companies representing the diverse ecosystem of debt collection including creditors, data/technology providers, and compliance-oriented debt collectors that are larger market participants. Established in 2013, CRC is evolving the debt collection paradigm by engaging stakeholders—including consumer advocates, Federal and State regulators, academic and industry thought leaders, creditors, and debt collectors—and challenging them to move beyond talking points and focus on fashioning real-world solutions that actually improve the consumer experience. CRC is managed by The iA Institute.
Learn more at www.crconsortium.org.
About the iA institute
The iA Institute is a media company that provides news, education, events and connection for professionals in consumer finance. The iA team believes the value of your time and investment in our content should be undeniable, so we thoughtfully design everything we do with a focus on the details that make a difference. Our initiatives include the flagship website and newsletter insideARM; the Consumer Relations Consortium (CRC) and iA Innovation Council membership groups; the iA Research Assistant and Case Law Tracker premium subscriptions; the iA Strategy & Tech digital conference; and the uniquely engaging annual Women in Consumer Finance event. iA is a certified Woman-Owned business.
Learn more at www.theiainstitute.com.