Student loans; licensing of qualified education loan servicers, civil penalties, report. (SB77)

Introduced By

Sen. Janet Howell (D-Reston) with support from co-patron Del. Kaye Kory (D-Falls Church)

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 federally regulated financial institutions 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; (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, 2021, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning March 1, 2021. Read the Bill »

Status

02/18/2020: passed committee

History

DateAction
11/25/2019Prefiled and ordered printed; offered 01/08/20 20101362D
11/25/2019Referred to Committee on Commerce and Labor
01/20/2020Rereferred from Commerce and Labor (15-Y 0-N) (see vote tally)
01/20/2020Rereferred to Finance and Appropriations
01/30/2020Reported from Finance and Appropriations with substitute (16-Y 0-N) (see vote tally)
01/30/2020Committee substitute printed 20107049D-S1
02/03/2020Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/04/2020Read second time
02/04/2020Reading of substitute waived
02/04/2020Committee substitute agreed to 20107049D-S1
02/04/2020Engrossed by Senate - committee substitute SB77S1
02/05/2020Read third time and passed Senate (40-Y 0-N) (see vote tally)
02/05/2020Impact statement from DPB (SB77S1)
02/13/2020Placed on Calendar
02/13/2020Read first time
02/13/2020Referred to Committee on Labor and Commerce
02/18/2020Reported from Labor and Commerce with substitute (21-Y 0-N) (see vote tally)
02/18/2020Committee substitute printed 20108550D-H1
02/19/2020Impact statement from DPB (SB77H1)

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