Student loans; licensing of qualified education loan servicers, civil penalties. (SB1112)
Introduced By
Sen. Janet Howell (D-Reston) with support from co-patron Del. Ken Plum (D-Reston)
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 except in accordance with provisions established by this bill. The bill requires a loan servicer to obtain a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, savings institutions, 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 July 1, 2020, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning March 1, 2020. Read the Bill »
Outcome
History
Date | Action |
---|---|
12/24/2018 | Prefiled and ordered printed; offered 01/09/19 19100744D |
12/24/2018 | Referred to Committee on Commerce and Labor |
01/02/2019 | Impact statement from VCSC (SB1112) |
01/14/2019 | Rereferred from Commerce and Labor (14-Y 0-N) (see vote tally) |
01/14/2019 | Rereferred to Education and Health |
01/16/2019 | Assigned Education sub: Higher Education |
01/18/2019 | Impact statement from DPB (SB1112) |
01/24/2019 | Reported from Education and Health with substitute (15-Y 0-N) (see vote tally) |
01/24/2019 | Committee substitute printed 19105662D-S1 |
01/24/2019 | Rereferred to Finance |
01/28/2019 | Impact statement from VCSC (SB1112S1) |
01/29/2019 | Impact statement from DPB (SB1112S1) |
01/31/2019 | Reported from Finance with amendment (14-Y 0-N) (see vote tally) |
02/04/2019 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/05/2019 | Read third time and passed Senate (40-Y 0-N) (see vote tally) |
02/05/2019 | Read second time |
02/05/2019 | Reading of substitute waived |
02/05/2019 | Committee substitute agreed to 19105662D-S1 |
02/05/2019 | Reading of amendment waived |
02/05/2019 | Committee amendment agreed to |
02/05/2019 | Engrossed by Senate - committee substitute SB1112ES1 |
02/05/2019 | Printed as engrossed 19105662D-ES1 |
02/05/2019 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/05/2019 | Passed Senate (40-Y 0-N) (see vote tally) |
02/07/2019 | Impact statement from DPB (SB1112ES1) |
02/08/2019 | Placed on Calendar |
02/08/2019 | Read first time |
02/08/2019 | Referred to Committee on Commerce and Labor |
02/12/2019 | Failed to report (defeated) in Commerce and Labor (11-Y 11-N) (see vote tally) |