Nevada Governor Approves Bill Requiring Document Translation for Consumer Financial Services Transactions, Including Credit Cards and Auto Title Lending | Ballard Spahr srl

A new Nevada law that comes into effect on October 1, 2021 requires that translated documents be provided to consumers by businesses that advertise and negotiate transactions covered by the law in a language other than English (or allow their agents or employees to advertise and negotiate in a language other than English). A conscious violation of the new requirement is considered a deceptive business practice under Nevada UDAP and non-compliance allows “the aggrieved party” to void the transaction.

For covered transactions advertised and negotiated orally or in writing in a language other than English, Assembly Bill 359, codified as Chapter 275, requires the delivery “of a translation of the contract or agreement resulting from such publicity and negotiations into the language which was used in the advertisement and negotiation of the contract or the ‘agreement to the person who is party to the contract or agreement and to any other person who could sign the contract or agreement. The translation must be provided prior to the execution of the contract or agreement and include all the terms and conditions of the contract or agreement.

The term “contract or agreement” is defined as “the document which creates the rights and obligations of the parties which results from a negotiation or from a transaction described in article 4 of this law and which is not excluded in under paragraph 4 of Article 4 of this Act. “The definition includes” any subsequent document which makes substantial changes to the rights and obligations of the parties. “It does not include subsequent documents authorized or contemplated by the original document or a document making substantial changes, such as periodic statements, sales slips or invoices showing purchases made under credit card agreements and refinancing documents.

The operations for which translated documents must be provided in accordance with Article 4 are:

• A loan or an extension of credit used for personal, family or household purposes and secured by property other than real estate
• A lease, sublet, rental contract or arrangement or other contract or arrangement for a term of at least one month and which applies to a dwelling, apartment, mobile home or dwelling in residential use
• An unsecured loan used for personal, family or household purposes

The translation requirement in section 4 does not apply to a bank, savings and credit association, savings bank, savings company or credit union if:

• The entity has a physical location
• Engages in a transaction other than a credit card or car loan (A “car loan” is defined as a loan or an extension of credit expressly intended to finance the purchase of a motor vehicle.)

If a financial institution needs to provide a disclosure under Regulation Z or Regulation M for a transaction, it will be deemed to be in compliance with the requirement in section 4 to provide a translation if the disclosure of Regulation Z or Regulation M is translated into the same language into which the contract or agreement is translated and the translated disclosure is provided to the same persons entitled to a translation of the contract or agreement.