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. Amends § 19.2-389, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/09/2018Prefiled and ordered printed; offered 01/10/18 18104625D
01/09/2018Referred to Committee for Courts of Justice
01/15/2018Rereferred from Courts of Justice (15-Y 0-N) (see vote tally)
01/15/2018Rereferred to Education and Health
01/17/2018Assigned Education sub: Higher Education
01/19/2018Impact statement from SCC (SB362)
02/08/2018Reported from Education and Health with substitute (15-Y 0-N) (see vote tally)
02/08/2018Committee substitute printed 18105349D-S1
02/08/2018Rereferred to Finance
02/08/2018Reported from Finance (16-Y 0-N) (see vote tally)
02/12/2018Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/12/2018Impact statement from SCC (SB362S1)
02/13/2018Read second time
02/13/2018Reading of substitute waived
02/13/2018Committee substitute agreed to 18105349D-S1
02/13/2018Engrossed by Senate - committee substitute SB362S1
02/13/2018Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/13/2018Passed Senate (40-Y 0-N) (see vote tally)
02/19/2018Placed on Calendar
02/19/2018Read first time
02/19/2018Referred to Committee on Commerce and Labor
02/20/2018Assigned C & L sub: Subcommittee #3
02/27/2018Subcommittee failed to recommend reporting (4-Y 6-N)
03/06/2018Left in Commerce and Labor