Qualified education loan servicers; person must obtain license from State Corporation Commission. (SB362)
Introduced By
Sen. Janet Howell (D-Reston) with support from co-patron Sen. Jennifer Wexton (D-Leesburg)
Progress
✓ |
Introduced |
✗ |
Passed Committee |
☐ |
Passed House |
✓ |
Passed Senate |
☐ |
Signed by Governor |
☐ |
Became Law |
Description
Qualified education loan servicers. Prohibits any person from acting as a qualified education loan servicer without first obtaining a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, credit unions, certain wholly owned subsidiaries of banks and credit unions, and nonprofit institutions of higher education are exempt from the licensing provisions. The servicing of a qualified education loan encompasses (i) receiving any scheduled periodic payments from a qualified education loan borrower pursuant to the terms of a qualified education loan; (ii) applying the payments of principal and interest and such other payments, with respect to the amounts received from a qualified education loan borrower, as may be required pursuant to the terms of a qualified education loan; and (iii) performing other administrative services with respect to a qualified education loan. Qualified education loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) knowingly misapplying or recklessly applying loan payments to the outstanding balance of a qualified education loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. Violations are subject to a civil penalty not exceeding $2,500. The bill has a delayed effective date of January 1, 2019, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning October 1, 2018. Read the Bill »
Outcome
History
Date | Action |
---|---|
01/09/2018 | Prefiled and ordered printed; offered 01/10/18 18104625D |
01/09/2018 | Referred to Committee for Courts of Justice |
01/15/2018 | Rereferred from Courts of Justice (15-Y 0-N) (see vote tally) |
01/15/2018 | Rereferred to Education and Health |
01/17/2018 | Assigned Education sub: Higher Education |
01/19/2018 | Impact statement from SCC (SB362) |
02/08/2018 | Reported from Education and Health with substitute (15-Y 0-N) (see vote tally) |
02/08/2018 | Committee substitute printed 18105349D-S1 |
02/08/2018 | Rereferred to Finance |
02/08/2018 | Reported from Finance (16-Y 0-N) (see vote tally) |
02/12/2018 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/12/2018 | Impact statement from SCC (SB362S1) |
02/13/2018 | Read second time |
02/13/2018 | Reading of substitute waived |
02/13/2018 | Committee substitute agreed to 18105349D-S1 |
02/13/2018 | Engrossed by Senate - committee substitute SB362S1 |
02/13/2018 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/13/2018 | Passed Senate (40-Y 0-N) (see vote tally) |
02/19/2018 | Placed on Calendar |
02/19/2018 | Read first time |
02/19/2018 | Referred to Committee on Commerce and Labor |
02/20/2018 | Assigned C & L sub: Subcommittee #3 |
02/27/2018 | Subcommittee failed to recommend reporting (4-Y 6-N) |
03/06/2018 | Left in Commerce and Labor |