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

Status

01/16/2019: In Subcommittee

History

DateAction
12/24/2018Prefiled and ordered printed; offered 01/09/19 19100744D
12/24/2018Referred to Committee on Commerce and Labor
01/02/2019Impact statement from VCSC (SB1112)
01/14/2019Rereferred from Commerce and Labor (14-Y 0-N) (see vote tally)
01/14/2019Rereferred to Education and Health
01/16/2019Assigned Education sub: Higher Education
01/18/2019Impact statement from DPB (SB1112)

Post a Public Comment About this Bill



if you have one


(Limited HTML is OK: <a>, <em>, <strong>, <s>)