Nevada 2019 Regular Session Status: Enacted

AB 477 — Enacts provisions governing certain consumer form contracts and consumer debts. (BDR 8-935)

Last action — Chapter 368.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 25, 2019. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

AN ACT relating to consumer contracts; enacting the Consumer Protection from the Accrual of Predatory Interest After Default Act; prohibiting the use of certain form contracts; limiting prejudgment and postjudgment interest and attorney's fees under certain circumstances; prohibiting choice of law, forum selection and other provisions in certain form contracts; and providing other matters properly relating thereto.

Bill Text

What changed in the latest version

219 added · 230 removed

219 line(s) added, 230 removed.

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(Reprinted with amendments adopted on May 24, 2019) THIRD REPRINT A.B.
Assembly Bill No.
477 A SSEMBLY B ILLN O.
477–Committee on Commerce and Labor CHAPTER..........
477–COMMITTEE ON C OMMERCE AND LABOR M ARCH 25, 2019 ____________ Referred to Committee on Commerce and Labor SUMMARY—Enacts provisions governing certain consumer form contracts and consumer debts.
(BDR 8-935) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Legislative Counsel’s Digest:
LegiExisting law contains various provisions governing retail installment sales.
Sections 5-8 of this bill define “business,” “consumer,” “consumer debt” and “consumer form contract.” Section 9 of this bill prohibits the use of a consumer form contract by a business that is not in compliance with the provisions of this bill.
Sections 5-8 of this bill define “business,” “consumer,” “consumer debt” and “consumer form contract.” Section 9 of this bill prohibits the use of a consumer form contract by a bill exempts certain business organizations and other persons from the provisions ofhis this bill.
Section 10 of this this bill.
Section 13 of this bill prohibits the inclusion of certain provisions in a consumer that any provision in a consumer form contract that violates the provisions of thiss bill is void and unenforceable.
form contract that would limit a consumer’s rights.
Section 14 of this bill declares that any provision in a consumer form contract that violates the provisions of this bill is void and unenforceable.
Section 17 of this bill provides certain - *AB477_R3* – 2 – limits on the amount of prejudgment interest and the rate of postjudgment interest under certain circumstances.
Section 17 of this bill provides certain limits on the amount of prejudgment interest and the rate of postjudgment interest under certain circumstances.
Sections 18 and 19 of this bill provide certain methods for calculating attorney’s fees for the prevailing party in any action to collect a consumer debt.
Sections 18 and 19 of this bill provide certain collect a consumer debt.attorney’s fees for the prevailing party in any action to EXPLANATION – Matter in bolded italics is new;
THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.
matter between brackets [omitted material] is material to be omitted.
- 80th Session (2019) – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1.
Protection from the Accrual of Predatory Interest After Default Act.
2.
This chapter may be cited as the Consumer Protection from the Accrual of Predatory Interest After Default Act.
Sec.
“Consumer debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily personal, family or household purposes, whether or not such obligation has been reduced to judgment.
“Consumer debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily personal, family or reduced to judgment.whether or not such obligation has been Sec.
Sec.
- *AB477_R3* – 3 – (b) “Goods” has the meaning ascribed to it in NRS 97.035.
(b) “Goods” has the meaning ascribed to it in NRS 97.035.
(d) “Retail installment contract” has the meaning ascribed to it in NRS 97.105.
- 80th Session (2019) – 3 – (d) “Retail installment contract” has the meaning ascribed to it in NRS 97.105.
A business, including, without limitation, any officer, agent, employee or representative, shall not individually or in cooperation with another, solicit the execution of, receive or rely upon a consumer form contract, including, without limitation, reliance upon the consumer form contract as a basis of a suit or claim, unless the business has complied with the provisions of this chapter.
A business, including, without limitation, any officer, agent, employee or representative, shall not individually or rely upon a consumer form contract, including, without limitation, reliance upon the consumer form contract as a basis of a suit or claim, unless the business has complied with the provisions of this chapter.
A person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national loan associations, credit unions, mortgage brokers, mortgages and bankers, thrift companies or insurance companies, including, regardless of whether the affiliate or subsidiary is a bank.rson 2.
A person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage brokers, mortgage bankers, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.
2.
(b) Approved by the Federal National Mortgage Association as a seller or servicer;
(b) Approved by the Federal National Mortgage Association as a s(c) Approved by the United States Department of Housing and Urban Development and the Department of Veterans Affairs.
and (c) Approved by the United States Department of Housing and Urban Development and the Department of Veterans Affairs.
- *AB477_R3* – 4 – 7.
- 80th Session (2019) – 4 – 7.
Enforcement and interpretation of such a contract must be governed by the laws of this State if enforcement of the consumer form contract is sought in a court of this State.
governed by the laws of this State if enforcement of the consumer form contract is sought in a court of this State.
Any change of terms to a consumer form contract must be agreed to by the consumer by affirmative consent, signed in the Electronic Signatures in Global and National Commerce Act,c) of 15 U.S.C.
Any change of terms to a consumer form contract must be agreed to by the consumer by affirmative consent, signed in writing or electronically in full compliance with Section 101(c) of the Electronic Signatures in Global and National Commerce Act, U.S.C.
1.c.
Sec.
A provision that the consumer will hold the other party harmless, or that otherwise relieves the other party of liability, for any harm or damage caused to the consumer arising from the consumer form contract.
13.
2.
A consumer form contract must not contain:
1.
Show all 58 changed rows (18 more)
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A provision that the consumer will hold the other party harmless, or that otherwise relieves the other party of liability, for consumer form contract.ed to the consumer arising from the 2.
7.
- 80th Session (2019) – 5 – 7.
A provision requiring or having the practical effect of requiring that any aspect of a resolution of a dispute between the - *AB477_R3* – 5 – parties to the agreement be kept confidential.
A provision requiring or having the practical effect of requiring that any aspect of a resolution of a dispute between the parties to the agreement be kept confidential.
A court may refuse to enforce other provisions of the consumer form contract as equity may require.
A court may refuse to enforce other provisions of the consumer form contract as Sec.
Sec.
Interest under the consumer form contract, prejudgment interest and postjudgment interest awarded by the court must not be 3.mpoAny prejudgment interest the court awards the plaintiff must be limited to the lesser of:
Interest under the consumer form contract, prejudgment interest and postjudgment interest awarded by the court must not be compounded.
form contract to the day the action to collect the debt is filed;
3.
or (b) One hundred eighty days of interest at the rate stated in the consumer form contract.
Any prejudgment interest the court awards the plaintiff must be limited to the lesser of:
(a) The accrued interest at the rate stated in the consumer for(b) One hundred eighty days of interest at the rate stated in the consumer form contract.
If the plaintiff is the prevailing party in any action to collect a consumer debt, the plaintiff is entitled to collect attorney’s fees only if the consumer form contract or other document evidencing the indebtedness sets forth an obligation of the consumer to pay such attorney’s fee and subject to the following conditions:
If the plaintiff is the prevailing party in any action to collect a consumer debt, the plaintiff is entitled to collect attorney’s fees only if the consumer form contract or other - 80th Session (2019) – 6 – document evidencing the indebtedness sets forth an obligation of the consumer to pay such attorney’s fee and subject to the following conditions:
- *AB477_R3* – 6 – (a) If a consumer form contract or other document evidencing indebtedness provides for attorney’s fees in some specific percentage, such provision and obligation is valid and enforceable for an amount not to exceed 15 percent of the amount of the debt, excluding attorney’s fees and collection costs.
(a) If a consumer form contract or other document evidencing indebtedness provides for attorney’s fees in some specific percentage, such provision and obligation is valid and enforceable for an amount not to exceed 15 percent of the amount of the debt, excluding attorney’s fees and collection costs.
collect a consumer debt, the debtor is entitled to an award ofn to reasonable attorney’s fees.
The amount of the debt that the creditor sought may not be a factor in determining the reasonableness of the award.
19.
If the debtor is the prevailing party in any action to collect a consumer debt, the debtor is entitled to an award of reasonable attorney’s fees.
The amount of the debt that the reasonableness of the award.
factor in determining the Sec.
H - *AB477_R3*
~~~~~ 19 - 80th Session (2019)
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Amendments

3 amendments

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Action History

  1. Chapter 368.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. Senate Amendment Nos. 736 and 960 concurred in. To enrollment.

  5. In Assembly.

  6. From printer. To re-engrossment. Re-engrossed. Third reprint. To Assembly.

  7. From printer. To re-engrossment. Re-engrossed. Second reprint. Read third time. Amended. (Amend. No. 960.) Reprinting dispensed with. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 20, Nays: None, Excused: 1.) To printer.

  8. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 736.) To printer.

  9. In Senate. Read first time. Referred to Committee on Commerce and Labor. To committee.

  10. From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved. (Yeas: 29, Nays: 12, Excused: 1.) To Senate.

  11. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 490.) To printer.

  12. From printer. To committee.

  13. Read first time. Referred to Committee on Commerce and Labor. To printer.

Sponsors

  • Assembly Committee on Commerce and Labor · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Assembly Committee on Commerce and Labor

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance civil-rights
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Frequently asked questions

What does AB 477 do?
AN ACT relating to consumer contracts; enacting the Consumer Protection from the Accrual of Predatory Interest After Default Act; prohibiting the use of certain form contracts; limiting prejudgment and postjudgment interest and attorney's fees under certain circumstances; prohibiting choice of law, forum selection and other provisions in certain form contracts; and providing other matters properly relating thereto.
Who sponsors AB 477?
AB 477 is sponsored by Assembly Committee on Commerce and Labor.
What is the current status of AB 477?
This bill has been enacted into law. Introduced March 25, 2019. Enacted.
Where can I track AB 477?
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