Nevada Governor Approves Bill to Provide Translated Documents for Consumer Financial Services Transactions, Including Credit Cards and Auto Title Loans Ballard Spahr LLP
A new law in Nevada, effective October 1, 2021, requires that consumers be provided with translated documents by companies promoting and negotiating covered transactions in a language other than English (or their agents or employees to advertise and negotiate in a language other than English). language other than English). A known violation of the new requirement will be considered a fraudulent trading practice under Nevada’s UDAP law and failure to comply will allow the “injured party” to terminate the transaction.
For covered transactions that are advertised and negotiated orally or in writing in a language other than English, Installation invoice 359, codified as Chapter 275, requires the delivery of “a translation of the contract or agreement resulting from such advertising and negotiation in the language used in the advertising and negotiation of the contract or arrangement to the person, the contracting party is “. or agreement and to any other person who can sign the contract or agreement. ”The translation must be made prior to the conclusion of the contract or contract and must contain all the terms and conditions of the contract or contract.
The term “contract or agreement” is defined as “the document that establishes the rights and obligations of the parties that result from a negotiation or transaction described in Section 4 of this Act and that is not excluded in accordance with Section 4 (4) of this Act “Law.” The definition includes “any subsequent document that makes material changes to the rights and obligations of the parties.” Excludes subsequent documents that are authorized or contemplated by the original document, or a document that makes material changes, such as z.
The businesses for which translated documents must be provided as per Section 4 are:
- A loan or credit extension for personal, family, or household purposes that is secured by assets other than real estate
- A lease, sublease, lease or contract or any other contract or contract with a term of at least one month that applies to an apartment, apartment, mobile home or unit that is used as a place of residence
- An unsecured loan that is used for personal, family, or household purposes
The translation requirement in Section 4 does not apply to a bank, savings bank, savings bank, savings bank or credit union if:
- The entity has a physical location
- Enters a transaction other than a credit card or a car loan (A “car loan” is defined as a loan or credit that is specifically designed to finance the purchase of a motor vehicle.)
If a financial institution is required to make a Regulation Z or Regulation M disclosure for a transaction, it is deemed to comply with the obligation in Section 4 to provide a translation if the Regulation Z or Regulation M disclosure is translated into the same language into which the contract or agreement is translated and the translated disclosure is made available to the same persons who are entitled to a translation of the contract or agreement.