Legislative Changes on the Collection of Credit Card Debit

Legislative Changes on the Collection of Credit Card Debit

Existing law provides that an issuer of a credit card may establish liability for credit card debt by producing a written application for the credit card signed by the cardholder or by evidence that the cardholder incurred charges and made payments on the card. NRS 97A.160. A new bill passed by the Nevada Legislature provides that a judgment cannot be entered in favor of a subsequent purchaser of credit card debt who attempts to collect on the debt unless the purchaser establishes liability for the debt in the same manner as the issuer above. Assembly Bill No. 472.

This new legislation provides significant consumer protection by making it more difficult for subsequent credit card purchasers to obtain a judgment. It also informs debtors of suits that have been commenced against them for credit card debt and by whom. The purpose of the bill is to enable the person being sued for a credit card to know which debt is implicated and what credit card company formed a basis for the suit. Accordingly, the original information and issuer of the credit card must be identified by a subsequent purchaser.

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