Usury Laws in Nevada

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Generally

Nevada has no limit on the rate of interest to which parties may agree so long as the agreement reflects an arms-length transaction.[1]  Further, Nevada allows compound interest on loans.[2]

Pawnbrokers and Short Term Loans

Although Nevada does not have a general limitation on interest rates, certain transactions and business are subject to interest rate and other restrictions.  Pawnbrokers are prohibited from charging more than 13% interest per month on any loan of money secured by personal property pledged to, or held by, a pawnbroker.[3]  Further, Nevada Revised Statutes, Chapter 604A recognizes three forms of short term lending, which are all subject to certain restrictions: deferred deposit loans, high-interest loans, and title loans.  Lenders may not pursue arbitration or civil suit on any Chapter 604A “defaulted loan or any extension or repayment plan thereof.”[4]

Deferred Deposit Loans, AKA Payday Loans

A deferred deposit loan is a transaction where a debtor provides a lender with a check or authorization for electronic transfer of a set amount of money on a future date certain in exchange for immediate receipt of a lesser sum of money than that authorized by the check or transfer.[5]  A payday loan may not exceed 25% of the debtor’s gross monthly income, including both principal and interest.[6]  An original term of the loan may not exceed 35 days,[7] and may not be extended for a period longer than 90 days.[8]

High-Interest Loans

A high-interest loan is one where the debtor pays a single or multiple installments against the loan amount and is charged in excess of 40% interest per year.[9]  Such a loan may be made for as long as 90 days if it requires fully amortized installments, is not subject to extension, and does not contain a balloon payment.[10]

Title Loans

          Nevada allows loans against the title of a vehicle or against a perfected security interest in a vehicle.[11] Car title lenders are not allowed to require or accept any other collateral besides the title of a vehicle, or to provide a loan for the purchase or refinancing of a vehicle.[12]  Title lenders may charge in excess of 35% interest per year.[13]

 


 

[1]               NRS 99.050; see also Consumers Distrib. Co. v. Hermann, 107 Nev. 387, 393, 812 P.2d 1274, 1278 (Nev. 1991).
[2]               NRS 99.050, 99.065.
[3]               NRS 646.050(1).
[4]               NRS 604A.480(2)(f); see also Attorney General Opinion No. 2012-06.
[5]               NRS 604A.050.
[6]               NRS 604A.425(1); see also State, Dept. of Bus. and Industry v. Check City P’ship, LLC, 130 Nev. Adv. Op. 90, 337 P.3d 755 (2014).
[7]               NRS 604A.480(1).
[8]               NRS 604A.480(1).
[9]               NRS 604A.0703.
[10]             NRS 604A.480(2).
[11]             NRS 604A.105(1)(b).
[12]             NRS 604A.105(2).
[13]             NRS 604A.105(1)(a).

About the Author

Jay Young is a Las Vegas, Nevada attorney. His practice focuses on business law, business litigation, and acting as an Arbitrator and Mediator. Peers have named him an AV-Rated Lawyer, Best Lawyers, a Top 100 Super Lawyers in the Mountain States multiple years, and to the Legal Elite and Top Lawyers lists for many years. Mr. Young has been appointed a part time Judge, a Special Master to the Clark County, Nevada Business Court, as an arbitrator by the Nevada Supreme Court. He has been appointed as an arbitrator or mediator of well over 250 legal disputes from business disputes to personal injury matters. He has been named Best Lawyers for Arbitration. Mr. Young is a respected author of ten books, including A Litigator’s Guide to Federal Evidentiary Objections, A Litigator’s Guide to the Federal Rules of Evidence, and the Federal Court Civil Litigation Checklist.
Mr. Young can be reached at 702.667.4868 or at jay@h2law.com.