NEVADA COLLECTION AGENCY MANAGER EXAM –
PRACTICE QUESTIONS WITH VERIFIED ANSWERS &
RATIONALES 2026
ABOUT THIS RESOURCE
This comprehensive practice exam is designed for candidates preparing for the Nevada
Collection Agency Manager Licensing Examination administered by the Nevada
Financial Institutions Division (FID) under NRS Chapter 649.
Exam Format & Requirements:
• The exam consists of approximately 100-150 questions
• Candidates must be at least 21 years of age
• 2 years of full-time collection experience are required, with at least 1 year within
the 18 months preceding application
• The Commissioner provides examinations at least twice per year
• Licenses must be renewed every two years
Core Content Areas Covered:
• Nevada Laws & Regulations (NRS Chapter 649, NAC, FID regulations)
• Federal Laws (FDCPA, FCRA, TCPA, GLBA)
• Licensing Requirements & Manager Responsibilities
• Debt Collection Practices & Consumer Protection
• Agency Operations & Recordkeeping
• Trust Account Management & Financial Principles
• Ethics & Professionalism
SECTION 1: NEVADA LAWS, REGULATIONS & LICENSING
REQUIREMENTS (Questions 1–40)
,Question 1: Under NRS 649, a “claim” is defined as:
A) Any written agreement between a creditor and a debtor
B) Any obligation for the payment of money or its equivalent that is past due
C) Any account that has been referred to an attorney for litigation
D) Any debt that has been discharged in bankruptcy
Correct Answer: B) Any obligation for the payment of money or its equivalent that
is past due
Rationale: NRS 649 defines a “claim” as any obligation for the payment of money or its
equivalent that is past due. This definition is foundational to understanding what types of
debts fall under the jurisdiction of the Collection Agency Act. Claims that are not past due,
debts discharged in bankruptcy, or accounts referred to litigation do not meet the
statutory definition of a “claim” under NRS 649.
Question 2: A “compliance manager” under NRS 649.035 is defined as a person who:
A) Holds a compliance manager’s certificate and is designated as the compliance
manager of a collection agency
B) Shares equally with the license holder the responsibility for the collection operation
C) Devotes a majority of their working time to the collection operation
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.035 defines a compliance manager as a person who: (1) holds a
compliance manager’s certificate, (2) is designated as the compliance manager of a
collection agency, (3) shares equally with the holder of a license the responsibility for the
collection operation, and (4) devotes a majority of their working time to the collection
operation. All of these elements are required for a person to qualify as a compliance
manager under Nevada law.
Question 3: Which of the following best describes a “debt buyer” under Nevada’s
collection agency framework?
,A) A person who collects debts on behalf of a creditor for a fee
B) A person who purchases delinquent debts and then attempts to collect them
C) A person who provides legal representation to debtors
D) A person who acts as a mediator between creditors and debtors
Correct Answer: B) A person who purchases delinquent debts and then attempts to
collect them
Rationale: A debt buyer is a person or entity that purchases delinquent debts and then
attempts to collect them. This model is distinguished from first-party collection (collecting
debts owed to the collector’s own company) and third-party collection (collecting debts
owed to others for a fee). Debt buyers are subject to the same licensing and compliance
requirements as traditional collection agencies when collecting on behalf of third parties.
Question 4: Under NRS 649, which of the following is NOT exempt from licensure as a
collection agency?
A) Banks
B) Attorneys
C) Real estate brokers
D) Debt buyers who collect on behalf of third parties
Correct Answer: D) Debt buyers who collect on behalf of third parties
Rationale: Banks, attorneys, and real estate brokers are exempt from collection agency
licensure under Nevada law. However, debt buyers who collect on behalf of third parties
must be licensed as collection agencies. This distinction is important because debt buyers
are subject to the same regulatory requirements as traditional collection agencies.
Question 5: According to NRS 649, a “collection agency” includes:
A) Only businesses that collect debts for a fee on behalf of others
B) Any person who, for a fee, engages in the collection of debts owed to another
C) Only corporations licensed by the Nevada Secretary of State
D) Only agencies that have been in operation for more than 5 years
, Correct Answer: B) Any person who, for a fee, engages in the collection of debts
owed to another
Rationale: Nevada law defines a collection agency as any person or entity that, for a fee,
engages in the collection of debts owed to another party. This definition is broad and
includes most third-party collection operations regardless of how long they have been in
business or their corporate structure.
Question 6: The purpose of NRS Chapter 649 is to:
A) Maximize profits for collection agencies
B) Protect consumers and regulate collection practices
C) Eliminate all debt collection activities in Nevada
D) Provide tax incentives for collection agencies
Correct Answer: B) Protect consumers and regulate collection practices
Rationale: The Nevada Collection Agency Act (NRS Chapter 649) sets rules for ethical and
legal debt collection in Nevada. Its primary purpose is to protect consumers and regulate
collection practices, ensuring that collection agencies operate in a fair and transparent
manner. This consumer protection focus is reflected throughout the statute, including
requirements for licensing, recordkeeping, and prohibited practices.
Question 7: Under NRS 649.035, a compliance manager must devote what portion of
their working time to the collection operation?
A) A minority of their working time
B) Approximately half of their working time
C) A majority of their working time
D) All of their working time
Correct Answer: C) A majority of their working time
Rationale: NRS 649.035 requires that a compliance manager devote a majority of their
working time to the collection operation. This ensures that the manager is actively
engaged in overseeing the agency’s collection activities and maintaining compliance with
PRACTICE QUESTIONS WITH VERIFIED ANSWERS &
RATIONALES 2026
ABOUT THIS RESOURCE
This comprehensive practice exam is designed for candidates preparing for the Nevada
Collection Agency Manager Licensing Examination administered by the Nevada
Financial Institutions Division (FID) under NRS Chapter 649.
Exam Format & Requirements:
• The exam consists of approximately 100-150 questions
• Candidates must be at least 21 years of age
• 2 years of full-time collection experience are required, with at least 1 year within
the 18 months preceding application
• The Commissioner provides examinations at least twice per year
• Licenses must be renewed every two years
Core Content Areas Covered:
• Nevada Laws & Regulations (NRS Chapter 649, NAC, FID regulations)
• Federal Laws (FDCPA, FCRA, TCPA, GLBA)
• Licensing Requirements & Manager Responsibilities
• Debt Collection Practices & Consumer Protection
• Agency Operations & Recordkeeping
• Trust Account Management & Financial Principles
• Ethics & Professionalism
SECTION 1: NEVADA LAWS, REGULATIONS & LICENSING
REQUIREMENTS (Questions 1–40)
,Question 1: Under NRS 649, a “claim” is defined as:
A) Any written agreement between a creditor and a debtor
B) Any obligation for the payment of money or its equivalent that is past due
C) Any account that has been referred to an attorney for litigation
D) Any debt that has been discharged in bankruptcy
Correct Answer: B) Any obligation for the payment of money or its equivalent that
is past due
Rationale: NRS 649 defines a “claim” as any obligation for the payment of money or its
equivalent that is past due. This definition is foundational to understanding what types of
debts fall under the jurisdiction of the Collection Agency Act. Claims that are not past due,
debts discharged in bankruptcy, or accounts referred to litigation do not meet the
statutory definition of a “claim” under NRS 649.
Question 2: A “compliance manager” under NRS 649.035 is defined as a person who:
A) Holds a compliance manager’s certificate and is designated as the compliance
manager of a collection agency
B) Shares equally with the license holder the responsibility for the collection operation
C) Devotes a majority of their working time to the collection operation
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.035 defines a compliance manager as a person who: (1) holds a
compliance manager’s certificate, (2) is designated as the compliance manager of a
collection agency, (3) shares equally with the holder of a license the responsibility for the
collection operation, and (4) devotes a majority of their working time to the collection
operation. All of these elements are required for a person to qualify as a compliance
manager under Nevada law.
Question 3: Which of the following best describes a “debt buyer” under Nevada’s
collection agency framework?
,A) A person who collects debts on behalf of a creditor for a fee
B) A person who purchases delinquent debts and then attempts to collect them
C) A person who provides legal representation to debtors
D) A person who acts as a mediator between creditors and debtors
Correct Answer: B) A person who purchases delinquent debts and then attempts to
collect them
Rationale: A debt buyer is a person or entity that purchases delinquent debts and then
attempts to collect them. This model is distinguished from first-party collection (collecting
debts owed to the collector’s own company) and third-party collection (collecting debts
owed to others for a fee). Debt buyers are subject to the same licensing and compliance
requirements as traditional collection agencies when collecting on behalf of third parties.
Question 4: Under NRS 649, which of the following is NOT exempt from licensure as a
collection agency?
A) Banks
B) Attorneys
C) Real estate brokers
D) Debt buyers who collect on behalf of third parties
Correct Answer: D) Debt buyers who collect on behalf of third parties
Rationale: Banks, attorneys, and real estate brokers are exempt from collection agency
licensure under Nevada law. However, debt buyers who collect on behalf of third parties
must be licensed as collection agencies. This distinction is important because debt buyers
are subject to the same regulatory requirements as traditional collection agencies.
Question 5: According to NRS 649, a “collection agency” includes:
A) Only businesses that collect debts for a fee on behalf of others
B) Any person who, for a fee, engages in the collection of debts owed to another
C) Only corporations licensed by the Nevada Secretary of State
D) Only agencies that have been in operation for more than 5 years
, Correct Answer: B) Any person who, for a fee, engages in the collection of debts
owed to another
Rationale: Nevada law defines a collection agency as any person or entity that, for a fee,
engages in the collection of debts owed to another party. This definition is broad and
includes most third-party collection operations regardless of how long they have been in
business or their corporate structure.
Question 6: The purpose of NRS Chapter 649 is to:
A) Maximize profits for collection agencies
B) Protect consumers and regulate collection practices
C) Eliminate all debt collection activities in Nevada
D) Provide tax incentives for collection agencies
Correct Answer: B) Protect consumers and regulate collection practices
Rationale: The Nevada Collection Agency Act (NRS Chapter 649) sets rules for ethical and
legal debt collection in Nevada. Its primary purpose is to protect consumers and regulate
collection practices, ensuring that collection agencies operate in a fair and transparent
manner. This consumer protection focus is reflected throughout the statute, including
requirements for licensing, recordkeeping, and prohibited practices.
Question 7: Under NRS 649.035, a compliance manager must devote what portion of
their working time to the collection operation?
A) A minority of their working time
B) Approximately half of their working time
C) A majority of their working time
D) All of their working time
Correct Answer: C) A majority of their working time
Rationale: NRS 649.035 requires that a compliance manager devote a majority of their
working time to the collection operation. This ensures that the manager is actively
engaged in overseeing the agency’s collection activities and maintaining compliance with
