Student loans; licensing of qualified education loan servicers, civil penalties, report. (HB10)

Introduced By

Del. Marcus Simon (D-Falls Church) with support from co-patron Sen. Janet Howell (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, nonprofit institutions of higher education, and farm credit systems 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 or notification of such payments; (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; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. 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) misapplying 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 and are prohibited practices under the Virginia Consumer Protection Act. The bill has a delayed effective date of July 1, 2021, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning March 1, 2021. This bill is identical to SB 77. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
11/18/2019Committee
11/18/2019Prefiled and ordered printed; offered 01/08/20 20100770D
11/18/2019Referred to Committee on Labor and Commerce
01/21/2020House committee, floor amendments and substitutes offered
01/21/2020Reported from Labor and Commerce with substitute (17-Y 3-N) (see vote tally)
01/21/2020Committee substitute printed 20104524D-H1
01/23/2020Read first time
01/24/2020Read second time
01/24/2020Committee substitute agreed to 20104524D-H1
01/24/2020Amendments by Delegate Simon agreed to
01/24/2020Engrossed by House - committee substitute with amendments HB10EH1
01/24/2020Printed as engrossed 20104524D-EH1
01/27/2020Read third time and passed House (84-Y 15-N)
01/27/2020VOTE: Passage (84-Y 15-N) (see vote tally)
01/28/2020Constitutional reading dispensed
01/28/2020Referred to Committee on Commerce and Labor
02/05/2020Impact statement from DPB (HB10EH1)
02/17/2020Rereferred from Commerce and Labor (15-Y 0-N) (see vote tally)
02/17/2020Rereferred to Finance and Appropriations
02/25/2020Reported from Finance and Appropriations with substitute (15-Y 0-N) (see vote tally)
02/25/2020Committee substitute printed 20108860D-S1
02/26/2020VOTE: Adoption (79-Y 14-N) (see vote tally)
02/26/2020Constitutional reading dispensed (38-Y 0-N) (see vote tally)
02/26/2020Read third time
02/26/2020Reading of substitute waived
02/26/2020Committee substitute agreed to 20108860D-S1
02/26/2020Engrossed by Senate - committee substitute HB10S1
02/26/2020Passed Senate with substitute (39-Y 1-N) (see vote tally)
02/26/2020Impact statement from DPB (HB10S1)
02/26/2020Senate substitute agreed to by House 20108860D-S1 (79-Y 14-N)
03/02/2020Enrolled
03/02/2020Bill text as passed House and Senate (HB10ER)
03/02/2020Impact statement from DPB (HB10ER)
03/02/2020Signed by Speaker
03/03/2020Signed by President
03/12/2020Enrolled Bill communicated to Governor on March 12, 2020
03/12/2020G Governor's Action Deadline 11:59 p.m., April 11, 2020
04/11/2020Governor's recommendation received by House
04/22/2020Placed on Calendar
04/22/2020House concurred in Governor's recommendation (75-Y 18-N)
04/22/2020Reconsideration of Governor's recommendation agreed to (38-Y 1-N) (see vote tally)
04/22/2020Senate concurred in Governor's recommendation (40-Y 0-N) (see vote tally)
04/22/2020G Governor's recommendation adopted
04/22/2020Reenrolled
04/22/2020Reenrolled bill text (HB10ER2)
04/22/2020Signed by Speaker as reenrolled
04/22/2020Signed by President as reenrolled
04/22/2020Enacted, Chapter 1198 (effective - see bill)
04/22/2020VOTE: (75-Y 18-N)
04/22/2020G Acts of Assembly Chapter text (CHAP1198)
05/01/2020VOTE: (75-Y 18-N)

Comments

Ron Q writes:

This seems like good long overdue legislation. Misleading those about to make a major financial decision should not be allowed.