On June 4, Commissioner Sandy O’Laughlin of the State of Nevada Financial Institutions Division (“NFID”) informed licensed collection agencies that they may resume operations contingent upon compliance with any outstanding emergency directive issued by Governor Steve Sisolak, guidance issued by a state agency, Justice Court Orders for each jurisdiction, and health and safety guidance from the Centers for Disease Control and Prevention and the State of Nevada.
This announcement comes as a welcome surprise following Gov. Sisolak’s May 28 declaration, which stated in Section 37 that:
Previous Directives not specifically referenced herein remain in effect for the duration specified in those specific Directives or subsequent extensions, unless specifically terminated or extended renewed by subsequent Directive. Directive 018 and all Directives incorporated by reference within Directive 018 with specific expiration dates are extended until June 30, 2020.
Gov. Sisolak’s May 28 declaration did not appear to specifically terminate or overturn previous guidance issued by the NFID limiting collection efforts in the state, implying that an outbound collection ban would remain in effect through June 30, 2020.
However, this guidance does not lift Nevada’s April 30 COVID-19 Declaration of Emergency Directive 017 Order, which stays garnishments in the State of Nevada.
Additionally, while the NFID issued guidance initially relaxing licensing requirements on March 13 to temporarily allow employees of collection agency licensees to work from home, that guidance statement was effective through May 31, 2020.
As Nevada continues to rollback debt collection restrictions, Troutman Sanders will monitor developments.