Bill Amendment: IL SB1351 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: STUDENT LOAN SERVICING RIGHTS
Status: 2017-11-08 - Public Act . . . . . . . . . 100-0540 [SB1351 Detail]
Download: Illinois-2017-SB1351-Senate_Amendment_002.html
Bill Title: STUDENT LOAN SERVICING RIGHTS
Status: 2017-11-08 - Public Act . . . . . . . . . 100-0540 [SB1351 Detail]
Download: Illinois-2017-SB1351-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 1351
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2 | AMENDMENT NO. ______. Amend Senate Bill 1351, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "ARTICLE 1. GENERAL PROVISIONS | ||||||
6 | "Section 1-1. Short title. This Act may be cited as the | ||||||
7 | Student Loan Servicing Rights Act.
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8 | Section 1-5. Definitions. As used in this Act: | ||||||
9 | "Applicant" means a person applying for a license pursuant | ||||||
10 | to this Act. | ||||||
11 | "Borrower" or "student loan borrower" means a person who | ||||||
12 | has received or agreed to pay a student loan for his or her own | ||||||
13 | educational expenses. | ||||||
14 | "Cosigner" means a person who has agreed to share | ||||||
15 | responsibility for repaying a student loan with a borrower. |
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1 | "Department" means the Department of Financial and | ||||||
2 | Professional Regulation. | ||||||
3 | "Division of Financial Institutions" means the Division of | ||||||
4 | Financial Institutions of the Department of Financial and | ||||||
5 | Professional Regulation. | ||||||
6 | "Federal loan borrower eligible for referral to a repayment | ||||||
7 | specialist" means a borrower who possesses any of the following | ||||||
8 | characteristics: | ||||||
9 | (1) requests information related to options to reduce | ||||||
10 | or suspend his or her monthly payment; | ||||||
11 | (2) indicates that he or she is experiencing or | ||||||
12 | anticipates experiencing financial hardship, distress, or | ||||||
13 | difficulty making his or her payments; | ||||||
14 | (3) has missed 2 consecutive monthly payments; | ||||||
15 | (4) is at least 75 days delinquent; | ||||||
16 | (5) is enrolled in a discretionary forbearance for more | ||||||
17 | than 9 of the previous 12 months; | ||||||
18 | (6) has rehabilitated or consolidated one or more loans | ||||||
19 | out of default within the past 12 months; or | ||||||
20 | (7) has not completed a course of study, as reflected | ||||||
21 | in the servicer's records, or the borrower identifies | ||||||
22 | himself or herself as not having completed a program of | ||||||
23 | study. | ||||||
24 | "Federal education loan" means any loan made, guaranteed, | ||||||
25 | or insured under Title IV of the federal Higher Education Act | ||||||
26 | of 1965. |
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1 | "Income-driven payment plan certification" means the | ||||||
2 | documentation related to a federal student loan borrower's | ||||||
3 | income or financial status the borrower must submit to renew an | ||||||
4 | income-driven repayment plan. | ||||||
5 | "Income-driven repayment options" includes the | ||||||
6 | Income-Contingent Repayment Plan, the Income-Based Repayment | ||||||
7 | Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn | ||||||
8 | Plan, the Revised Pay As You Earn Plan, and any other federal | ||||||
9 | student loan repayment plan that is calculated based on a | ||||||
10 | borrower's income. | ||||||
11 | "Licensee" means a person licensed pursuant to this Act. | ||||||
12 | "Other repayment plans" means the Standard Repayment Plan, | ||||||
13 | the Graduated Repayment Plan, the Extended Repayment Plan, or | ||||||
14 | any other federal student loan repayment plan not based on a | ||||||
15 | borrower's income. | ||||||
16 | "Private education loan" has the meaning given to that term | ||||||
17 | in 15 U.S.C. 1650. | ||||||
18 | "Private loan borrower eligible for referral to a repayment | ||||||
19 | specialist" means a borrower who possesses any of the following | ||||||
20 | characteristics: | ||||||
21 | (1) requests information related to options to reduce | ||||||
22 | or suspend his or her monthly payments; or | ||||||
23 | (2) indicates that he or she is experiencing or | ||||||
24 | anticipates experiencing financial hardship, distress, or | ||||||
25 | difficulty making his or her payments. | ||||||
26 | "Requester" means any borrower or cosigner that submits a |
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1 | request for assistance. | ||||||
2 | "Request for assistance" means all inquiries, complaints, | ||||||
3 | account disputes, and requests for documentation a servicer | ||||||
4 | receives from borrowers or cosigners. | ||||||
5 | "Secretary" means the Secretary of Financial and | ||||||
6 | Professional Regulation, or his or her designee, including the | ||||||
7 | Director of the Division of Banking of the Department of | ||||||
8 | Financial and Professional Regulation. | ||||||
9 | "Servicing" means any of the following activities related | ||||||
10 | to a student loan of a borrower or cosigner: | ||||||
11 | (1) receiving any scheduled periodic payments from a | ||||||
12 | borrower or cosigner or any notification that a borrower or | ||||||
13 | cosigner made a scheduled periodic payment; | ||||||
14 | (2) applying payments to the borrower's account | ||||||
15 | pursuant to the terms of the student loan or the contract | ||||||
16 | governing the servicing; | ||||||
17 | (3) during a period when no payment is required on a | ||||||
18 | student loan, performing both of the following: | ||||||
19 | (A) maintaining account records for the student | ||||||
20 | loan; and | ||||||
21 | (B) communicating with the borrower or cosigner | ||||||
22 | regarding the student loan on behalf of the owner of | ||||||
23 | the student loan promissory note; or | ||||||
24 | (4) interacting with a borrower or cosigner related to | ||||||
25 | that borrower's student loan with the goal of helping the | ||||||
26 | borrower avoid default on his or her student loan or |
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1 | facilitating the activities described in paragraph (1) or | ||||||
2 | (2). | ||||||
3 | "Student loan" or "loan" means any federal education loan, | ||||||
4 | private education loan, or other loan primarily for use to | ||||||
5 | finance a postsecondary education and costs of attendance at a | ||||||
6 | postsecondary institution, including, but not limited to, | ||||||
7 | tuition, fees, books and supplies, room and board, | ||||||
8 | transportation, and miscellaneous personal expenses. "Student | ||||||
9 | loan" includes a loan made to refinance a student loan. | ||||||
10 | "Student loan servicer" or "servicer" means any person | ||||||
11 | engaged in the business of servicing student loans.
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12 | ARTICLE 5. STUDENT LOAN BILL OF RIGHTS | ||||||
13 | Section 5-5. General provisions. | ||||||
14 | (a) A servicer shall not engage in any unfair or deceptive | ||||||
15 | practice toward any borrower or cosigner or misrepresent or | ||||||
16 | omit any material information in connection with the servicing | ||||||
17 | of a student loan, including, but not limited to, | ||||||
18 | misrepresenting the amount, nature, or terms of any fee or | ||||||
19 | payment due or claimed to be due on a student loan, the terms | ||||||
20 | and conditions of the student loan agreement, or the borrower's | ||||||
21 | or cosigner's obligations under the student loan or the terms | ||||||
22 | of any repayment plans. | ||||||
23 | (b) A servicer shall not misapply payments made by a | ||||||
24 | borrower to the outstanding balance of a student loan. |
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1 | (c) A servicer shall oversee third parties, including | ||||||
2 | subservicers, debt collectors, independent contractors, | ||||||
3 | subsidiaries, affiliates, or other agents, to ensure that those | ||||||
4 | companies comply with this Article 5.
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5 | Section 5-10. Payment processing. | ||||||
6 | (a) A servicer shall credit borrower and cosigner payments | ||||||
7 | promptly and accurately. | ||||||
8 | (b) A servicer shall provide borrowers and cosigners no | ||||||
9 | less than 45 days' notice if the servicer changes the address | ||||||
10 | to which the borrower or cosigner needs to send payments. | ||||||
11 | (c) A servicer shall not charge a penalty to a borrower or | ||||||
12 | cosigner if a student loan payment is received at an address | ||||||
13 | used for payments for a period of 90 days after the change in | ||||||
14 | address. | ||||||
15 | (d) A servicer shall not misrepresent the delinquent amount | ||||||
16 | of the loan on any call with a borrower or cosigner. | ||||||
17 | (e) A servicer shall allow a borrower or cosigner to | ||||||
18 | specify instructions as to how an overpayment should be applied | ||||||
19 | to the balance of the loan as consistent with the promissory | ||||||
20 | note.
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21 | Section 5-15. Fees. | ||||||
22 | (a) A servicer may only charge late fees that are | ||||||
23 | reasonable and proportional to the cost it incurs related to a | ||||||
24 | late payment. |
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1 | (b) A servicer shall not charge a borrower or cosigner any | ||||||
2 | fee to modify, defer, forbear, renew, extend, or amend the | ||||||
3 | borrower's or cosigner's loan.
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4 | Section 5-20. Billing statements. | ||||||
5 | (a) In any student loan billing statement, a servicer shall | ||||||
6 | not misrepresent the: | ||||||
7 | (1) fees assessed; | ||||||
8 | (2) total amount due for each loan; | ||||||
9 | (3) payment due date; | ||||||
10 | (4) date to avoid late fees; | ||||||
11 | (5) accrued interest during the billing cycle; | ||||||
12 | (6) default payment methodology; | ||||||
13 | (7) means to provide instructions for a payment; or | ||||||
14 | (8) procedure regarding escalated requests for | ||||||
15 | assistance. | ||||||
16 | (b) A servicer shall not misrepresent information | ||||||
17 | regarding the $0 bill and advancement of the due date on any | ||||||
18 | billing statement that reflects $0 owed.
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19 | Section 5-25. Payment histories. A servicer shall provide a | ||||||
20 | written payment history to a borrower or cosigner upon request | ||||||
21 | at no cost within 21 calendar days of receiving the request.
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22 | Section 5-30. Specialized assistance for student loan | ||||||
23 | borrowers. |
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1 | (a) A servicer shall specially designate servicing and | ||||||
2 | collections personnel deemed repayment specialists who have | ||||||
3 | received enhanced training related to repayment options. | ||||||
4 | (b) A servicer shall refrain from presenting forbearance as | ||||||
5 | the sole or first repayment option to a student loan borrower | ||||||
6 | struggling with repayment unless the servicer has determined | ||||||
7 | that, based on the borrower's financial status, a short term | ||||||
8 | forbearance is appropriate. | ||||||
9 | (c) All inbound and outbound calls from a federal loan | ||||||
10 | borrower eligible for referral to a repayment specialist and a | ||||||
11 | private loan borrower eligible for referral to a repayment | ||||||
12 | specialist shall be routed to a repayment specialist. | ||||||
13 | (d) During each inbound or outbound communication with an | ||||||
14 | eligible federal loan borrower, a repayment specialist shall | ||||||
15 | first inform a federal loan borrower eligible for referral to a | ||||||
16 | repayment specialist that federal income-driven repayment | ||||||
17 | plans that can reduce the borrower's monthly payment may be | ||||||
18 | available, discuss such plans, and assist the borrower in | ||||||
19 | determining whether a particular repayment plan may be | ||||||
20 | appropriate for the borrower. | ||||||
21 | (e) A repayment specialist shall assess the long-term and | ||||||
22 | short-term financial situation and needs of a federal loan | ||||||
23 | borrower eligible for referral to a repayment specialist and | ||||||
24 | consider any available specific information from the borrower | ||||||
25 | as necessary to assist the borrower in determining whether a | ||||||
26 | particular income-driven repayment option may be available to |
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1 | the borrower. | ||||||
2 | (f) In each discussion with a federal loan borrower | ||||||
3 | eligible for referral to a repayment specialist, a repayment | ||||||
4 | specialist shall present and explain the following options, as | ||||||
5 | appropriate: | ||||||
6 | (1) total and permanent disability discharge, public | ||||||
7 | service loan forgiveness, closed school discharge, and | ||||||
8 | defenses to repayment; | ||||||
9 | (2) other repayment plans; | ||||||
10 | (3) deferment; and | ||||||
11 | (4) forbearance. | ||||||
12 | (g) A repayment specialist shall assess the long-term and | ||||||
13 | short-term financial situation and needs of a private loan | ||||||
14 | borrower eligible for referral to a repayment specialist in | ||||||
15 | determining whether any private loan repayment options may be | ||||||
16 | appropriate for the borrower. | ||||||
17 | (h) A servicer shall present and explain all private loan | ||||||
18 | repayment options, including alternative repayment | ||||||
19 | arrangements applicable to private student loan borrowers. | ||||||
20 | (i) A servicer shall be prohibited from implementing any | ||||||
21 | compensation plan that has the intended or actual effect of | ||||||
22 | incentivizing a repayment specialist to violate this Act or any | ||||||
23 | other measure that encourages undue haste or lack of quality. | ||||||
24 | (j) The requirements of this Section shall not apply if a | ||||||
25 | repayment specialist has already conversed with a borrower | ||||||
26 | consistent with the requirements of this Section.
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1 | Section 5-35. Disclosures related to discharge and | ||||||
2 | cancellation. If a servicer is aware that a student loan | ||||||
3 | borrower attended a school the United States Department of | ||||||
4 | Education has made findings supporting a defense to repayment | ||||||
5 | claim or closed school discharge, or that a borrower may be | ||||||
6 | eligible to have his or her loans forgiven under a total and | ||||||
7 | permanent disability discharge program, the servicer's | ||||||
8 | personnel shall disclose information related to the Department | ||||||
9 | of Education's procedure for asserting a defense to repayment | ||||||
10 | claim, closed school discharge, or submitting an application | ||||||
11 | for a total and permanent disability discharge.
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12 | Section 5-40. Income-driven repayment plan certifications. | ||||||
13 | A servicer shall disclose the date that a borrower's | ||||||
14 | income-driven payment plan certification will expire and the | ||||||
15 | consequences to the borrower for failing to recertify by the | ||||||
16 | date, including the new repayment amount.
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17 | Section 5-45. Information to be provided to private | ||||||
18 | education loan borrowers. | ||||||
19 | (a) A servicer shall provide on its website a description | ||||||
20 | of any alternative repayment plan offered by the servicer for | ||||||
21 | private education loans. | ||||||
22 | (b) A servicer shall establish policies and procedures and | ||||||
23 | implement them consistently in order to facilitate evaluation |
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1 | of private student loan alternative repayment arrangement | ||||||
2 | requests, including providing accurate information regarding | ||||||
3 | any private student loan alternative repayment arrangements | ||||||
4 | that may be available to the borrower through the promissory | ||||||
5 | note or that may have been marketed to the borrower through | ||||||
6 | marketing materials. | ||||||
7 | A private student loan alternative repayment arrangements | ||||||
8 | shall consider the affordability of repayment plans for a | ||||||
9 | distressed borrower, as well as investor, guarantor, and | ||||||
10 | insurer guidelines and previous outcome and performance | ||||||
11 | information. | ||||||
12 | (c) If a servicer offers private student loan repayment | ||||||
13 | arrangements, a servicer shall consistently present and offer | ||||||
14 | those arrangements to borrowers with similar financial | ||||||
15 | circumstances.
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16 | Section 5-50. Cosigner release. A servicer shall provide | ||||||
17 | information on billing statements and its website concerning | ||||||
18 | the availability and criteria for a cosigner release.
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19 | Section 5-55. Payoff statements. A servicer shall indicate | ||||||
20 | on its billing statements and website that a borrower may | ||||||
21 | request a payoff statement. A servicer shall provide the payoff | ||||||
22 | statement within 10 days, including information the requester | ||||||
23 | needs to pay off the loan. If a payoff is made, the servicer | ||||||
24 | must send a paid-in-full notice within 30 days.
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1 | Section 5-60. Requirements related to the transfer of | ||||||
2 | servicing. | ||||||
3 | (a) When acting as the transferor servicer, a servicer | ||||||
4 | shall provide to each borrower subject to the transfer a | ||||||
5 | written notice not less than 15 calendar days before the | ||||||
6 | effective date of the transfer. The transferee servicer and | ||||||
7 | transferor servicer may provide a single notice, in which case | ||||||
8 | the notice shall be provided not less than 15 calendar days | ||||||
9 | before the effective date of the transfer. The notice by the | ||||||
10 | transferor servicer or, if applicable, the combined notice of | ||||||
11 | transfer shall contain the following information: | ||||||
12 | (1) the effective date of the transfer of servicing; | ||||||
13 | (2) the name, address, and toll-free telephone number | ||||||
14 | for the transferor servicer's designated point of contact | ||||||
15 | that can be contacted by the borrower to obtain answers to | ||||||
16 | servicing inquiries; | ||||||
17 | (3) the name, address, and toll-free telephone number | ||||||
18 | for the transferee servicer's designated point of contact | ||||||
19 | that can be contacted by the borrower to obtain answers to | ||||||
20 | servicing inquiries; | ||||||
21 | (4) the date on which the transferor servicer will | ||||||
22 | cease to accept payments relating to the loan and the date | ||||||
23 | on which the transferee servicer will begin to accept such | ||||||
24 | payments; the dates shall either be the same or consecutive | ||||||
25 | days; |
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1 | (5) a statement that the transfer of servicing does not | ||||||
2 | affect any term or condition of the loan other than terms | ||||||
3 | directly related to the servicing of a loan; | ||||||
4 | (6) information on whether the borrower's | ||||||
5 | authorization for recurring electronic fund transfers, if | ||||||
6 | applicable, will be transferred to the transferee | ||||||
7 | servicer; if any such recurring electronic funds transfers | ||||||
8 | cannot be transferred, the transferee servicer shall | ||||||
9 | provide information explaining how the borrower may | ||||||
10 | establish new recurring electronic funds transfers with | ||||||
11 | the transferee servicer; and | ||||||
12 | (7) a statement of the current loan balance, including | ||||||
13 | the current unpaid amount of principal, interest, and fees. | ||||||
14 | (b) When acting as the transferee servicer, a servicer | ||||||
15 | shall provide to each borrower subject to the transfer a | ||||||
16 | written notice not more than 15 calendar days after the | ||||||
17 | effective date of the transfer. The transferee servicer and | ||||||
18 | transferor servicer may provide a combined notice of transfer, | ||||||
19 | in which case the notice shall be provided not less than 15 | ||||||
20 | days before the effective date of the transfer. The notice by | ||||||
21 | the transferee servicer or, if applicable, the combined notice | ||||||
22 | of transfer shall contain the following information: | ||||||
23 | (1) the effective date of the transfer of servicing; | ||||||
24 | (2) the name, address, and toll-free telephone number | ||||||
25 | for the transferee servicer's designated point of contact | ||||||
26 | that can be contacted by the borrower to obtain answers to |
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1 | servicing inquiries; | ||||||
2 | (3) the date on which the transferor servicer will | ||||||
3 | cease to accept payments relating to the loan and the date | ||||||
4 | on which the transferee servicer will begin to accept such | ||||||
5 | payments; the dates shall either be the same or consecutive | ||||||
6 | days; | ||||||
7 | (4) a statement that the transfer of servicing does not | ||||||
8 | affect any term or condition of the student loan other than | ||||||
9 | terms directly related to the servicing of a loan; | ||||||
10 | (5) information on whether the borrower's | ||||||
11 | authorization for recurring electronic fund transfers, if | ||||||
12 | applicable, will be transferred to the transferee | ||||||
13 | servicer; if any such recurring electronic funds transfers | ||||||
14 | cannot be transferred, the transferee servicer shall | ||||||
15 | provide information explaining how the borrower may | ||||||
16 | establish new recurring electronic funds transfers with | ||||||
17 | the transferee servicer; and | ||||||
18 | (6) a statement of the current loan balance, including | ||||||
19 | the current unpaid amount of principal, interest, and fees. | ||||||
20 | (c) During the 60 calendar day period beginning on the | ||||||
21 | effective date of transfer of the servicing of any loan, a | ||||||
22 | payment timely made to the transferor servicer may not be | ||||||
23 | treated as late for any purpose by the transferee servicer, | ||||||
24 | including the assessment of late fees, accrual of additional | ||||||
25 | interest, and furnishing negative credit information. | ||||||
26 | (d) To the extent practicable, for at least 120 calendar |
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1 | days beginning on the effective date of transfer of servicing | ||||||
2 | of any loan, when acting as the transferor servicer, a servicer | ||||||
3 | shall promptly transfer payments received to the transferee | ||||||
4 | servicer for application to the borrower's loan account. | ||||||
5 | (e) Unless a borrower's authorizations for recurring | ||||||
6 | electronic fund transfers are automatically transferred to the | ||||||
7 | transferee servicer, when acting as transferee servicer, a | ||||||
8 | servicer shall make available to a borrower whose loan | ||||||
9 | servicing is transferred an online process through which a | ||||||
10 | borrower may make a new authorization for recurring electronic | ||||||
11 | fund transfers. A servicer shall also provide a process through | ||||||
12 | which the borrower may make a new authorization for recurring | ||||||
13 | electronic funds transfers by phone or through written | ||||||
14 | approval.
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15 | Section 5-65. Requests for assistance; account dispute | ||||||
16 | resolution; appeals. | ||||||
17 | (a) A servicer shall implement reasonable policies and | ||||||
18 | procedures for accepting, processing, investigating, and | ||||||
19 | responding to requests for assistance in a timely and effective | ||||||
20 | manner, including, but not limited to, the following | ||||||
21 | requirements: | ||||||
22 | (1) A servicer shall provide readily accessible | ||||||
23 | methods for consumers to submit a request for assistance to | ||||||
24 | the servicer, including such methods as phone, email, and | ||||||
25 | U.S. mail. |
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1 | (2) A servicer shall post on its website and disclose | ||||||
2 | on its billing statements: | ||||||
3 | (A) the toll-free telephone number, email address, | ||||||
4 | and mailing address for consumers to submit a requests | ||||||
5 | for assistance to the servicer; and | ||||||
6 | (B) the procedures for a requester to send a | ||||||
7 | written communication to the servicer regarding any | ||||||
8 | request for assistance. | ||||||
9 | (3) For any request for assistance that includes a | ||||||
10 | request for documentation or information, where a response | ||||||
11 | cannot be immediately provided, a servicer shall provide | ||||||
12 | the requested documentation or information to the | ||||||
13 | requester within 14 calendar days of the request; if a | ||||||
14 | servicer determines in good faith that it is unable to | ||||||
15 | provide the documentation or information within 14 | ||||||
16 | calendar days, promptly after making the determination, | ||||||
17 | the servicer shall notify the requester of the expected | ||||||
18 | response period, which must be reasonable for the request | ||||||
19 | for assistance. | ||||||
20 | (b) A servicer shall implement a process by which a | ||||||
21 | requester can escalate any request for assistance. Such process | ||||||
22 | shall allow a requester who has made a request for assistance | ||||||
23 | on the phone and who receives a response during the call to | ||||||
24 | obtain immediate review of the response by an employee of the | ||||||
25 | servicer at a higher supervisory level. | ||||||
26 | (c) The following requirements shall apply when a requester |
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1 | submits a written or oral request for assistance which contains | ||||||
2 | an account dispute to a servicer: | ||||||
3 | (1) Within 14 calendar days after its receipt of the | ||||||
4 | written communication or oral request for further | ||||||
5 | escalation, a servicer shall attempt to make contact, | ||||||
6 | including providing the requester with name and contact | ||||||
7 | information of the representative handling the account | ||||||
8 | dispute, by phone or in writing, to the requester and | ||||||
9 | document such attempt in the borrower's account. | ||||||
10 | (2) A servicer shall complete the following actions | ||||||
11 | within 30 calendar days of its receipt of the written | ||||||
12 | communication or oral request for further escalation, | ||||||
13 | subject to paragraph (3) of this subsection: | ||||||
14 | (A) conduct a thorough investigation of the | ||||||
15 | account dispute; | ||||||
16 | (B) make all appropriate corrections to the | ||||||
17 | account of the requester, including crediting any late | ||||||
18 | fees assessed and derogatory credit furnishing as the | ||||||
19 | result of any error, and, if any corrections are made, | ||||||
20 | sending the requester a written notification that | ||||||
21 | includes the following information: | ||||||
22 | (i) an explanation of the correction or | ||||||
23 | corrections to the requester's account that have | ||||||
24 | been made; and | ||||||
25 | (ii) the toll-free telephone number, email | ||||||
26 | address, and mailing address of the servicer's |
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1 | personnel knowledgeable about the investigation | ||||||
2 | and resolution of the account dispute. | ||||||
3 | (3) If a servicer determines in good faith that it | ||||||
4 | cannot complete a thorough investigation of the account | ||||||
5 | dispute within 30 calendar days after receiving the written | ||||||
6 | communication or oral request for further escalation | ||||||
7 | regarding the account dispute, then, promptly after making | ||||||
8 | the determination, the servicer shall notify the requester | ||||||
9 | of the expected resolution time period, which must be | ||||||
10 | reasonable for the account dispute. A servicer must | ||||||
11 | complete the actions listed in the investigation and | ||||||
12 | resolution of account dispute within this time period. | ||||||
13 | (4) If a servicer determines as a result of its | ||||||
14 | investigation that the requested changes to a requester's | ||||||
15 | dispute will not be made, the servicer shall provide the | ||||||
16 | requester with a written notification that includes the | ||||||
17 | following information: | ||||||
18 | (A) a description of its determination and an | ||||||
19 | explanation of the reasons for that determination; | ||||||
20 | (B) the toll-free telephone number, email address, | ||||||
21 | and mailing address of the servicer's personnel | ||||||
22 | knowledgeable about the investigation and resolution | ||||||
23 | of the account dispute; | ||||||
24 | (C) instructions about how the requester can | ||||||
25 | appeal the servicer's determination in accordance with | ||||||
26 | paragraph (5) of this subsection; and |
| |||||||
| |||||||
1 | (D) information regarding the method by which a | ||||||
2 | borrower may request copies of documents a servicer | ||||||
3 | relied on to make a determination that no changes to a | ||||||
4 | requester's account will be made. | ||||||
5 | (5) After the requester receives a determination | ||||||
6 | regarding an account dispute in accordance with paragraph | ||||||
7 | (4) of this subsection, the servicer shall allow a process | ||||||
8 | by which the requester can appeal, in writing, the | ||||||
9 | determination. The appeals process shall include: | ||||||
10 | (A) a written acknowledgment notifying the | ||||||
11 | requester that the servicer has commenced the appeals | ||||||
12 | process; such acknowledgment shall be sent within 14 | ||||||
13 | calendar days after receiving a written request for | ||||||
14 | appeal from the requester; | ||||||
15 | (B) an independent reassessment of the servicer's | ||||||
16 | determination regarding the account dispute, performed | ||||||
17 | by another employee of the servicer at an equal or | ||||||
18 | higher supervisory level than the employee or | ||||||
19 | employees involved in the initial account dispute | ||||||
20 | determination; | ||||||
21 | (C) investigation and resolution of appeals within | ||||||
22 | 30 calendar days after a servicer's commencement of the | ||||||
23 | appeals process; and | ||||||
24 | (D) notification sent to the requester, in | ||||||
25 | writing, documenting the outcome of the appeal, | ||||||
26 | including any reason for denial. |
| |||||||
| |||||||
1 | (d) While a requester has a pending account dispute, | ||||||
2 | including any applicable appeal, a servicer shall take | ||||||
3 | reasonable steps to: | ||||||
4 | (1) prevent negative credit reporting with respect to | ||||||
5 | the borrower's or cosigner's account while the dispute is | ||||||
6 | under review; and | ||||||
7 | (2) suspend all collection activities on the account | ||||||
8 | while the account dispute is being researched or resolved, | ||||||
9 | if the account dispute is related to the delinquency.
| ||||||
10 | ARTICLE 10. STUDENT LOAN OMBUDSMAN | ||||||
11 | Section 10-5. Student Loan Ombudsman. | ||||||
12 | (a) The position of Student Loan Ombudsman is created | ||||||
13 | within the Office of the Attorney General to provide timely | ||||||
14 | assistance to student loan borrowers. | ||||||
15 | (b) The Student Loan Ombudsman, in consultation with the | ||||||
16 | Secretary, shall: | ||||||
17 | (1) receive, review, and attempt to resolve any | ||||||
18 | complaints from student loan borrowers, including, but not | ||||||
19 | limited to, attempts to resolve complaints in | ||||||
20 | collaboration with institutions of higher education, | ||||||
21 | student loan servicers, and any other participants in | ||||||
22 | student loan lending; | ||||||
23 | (2) compile and analyze data on student loan borrower | ||||||
24 | complaints; |
| |||||||
| |||||||
1 | (3) assist student loan borrowers to understand their | ||||||
2 | rights and responsibilities under the terms of student | ||||||
3 | education loans; | ||||||
4 | (4) provide information to the public, agencies, | ||||||
5 | legislators, and others regarding the problems and | ||||||
6 | concerns of student loan borrowers and make | ||||||
7 | recommendations for resolving those problems and concerns; | ||||||
8 | (5) analyze and monitor the development and | ||||||
9 | implementation of federal, State, and local laws, | ||||||
10 | regulations, and policies relating to student loan | ||||||
11 | borrowers and recommend any changes the Student Loan | ||||||
12 | Ombudsman deems necessary; | ||||||
13 | (6) review the complete student education loan history | ||||||
14 | for any student loan borrower who has provided written | ||||||
15 | consent for such review; | ||||||
16 | (7) disseminate information concerning the | ||||||
17 | availability of the Student Loan Ombudsman to assist | ||||||
18 | student loan borrowers and potential student loan | ||||||
19 | borrowers, as well as public institutions of higher | ||||||
20 | education, student loan servicers, and any other | ||||||
21 | participant in student education loan lending, with any | ||||||
22 | student loan servicing concerns; and | ||||||
23 | (8) take any other actions necessary to fulfill the | ||||||
24 | duties of the Student Loan Ombudsman as set forth in this | ||||||
25 | subsection.
|
| |||||||
| |||||||
1 | ARTICLE 15. LICENSURE | ||||||
2 | Section 15-5. Scope; requirement for student loan | ||||||
3 | servicing license. | ||||||
4 | (a) It shall be unlawful for any person to operate as a | ||||||
5 | student loan servicer in Illinois except as authorized by this | ||||||
6 | Act and without first having obtained a license in accordance | ||||||
7 | with this Act. | ||||||
8 | (b) The provisions of this Act do not apply to any of the | ||||||
9 | following: | ||||||
10 | (1) a bank, out-of-state bank, Illinois credit union, | ||||||
11 | federal credit union, or out-of-state credit union; | ||||||
12 | (2) a wholly owned subsidiary of any such bank or | ||||||
13 | credit union; | ||||||
14 | (3) an operating subsidiary where each owner of the | ||||||
15 | operating subsidiary is wholly owned by the same bank or | ||||||
16 | credit union; | ||||||
17 | (4) the Illinois Student Assistance Commission; | ||||||
18 | (5) a public postsecondary educational institution or | ||||||
19 | a private nonprofit postsecondary educational institution | ||||||
20 | servicing a student loan it extended to the borrower; | ||||||
21 | (6) a licensed debt management service under the Debt | ||||||
22 | Management Service Act, except to the extent that the | ||||||
23 | organization acts as a subcontractor, affiliate, or | ||||||
24 | service provider for an entity that is otherwise subject to | ||||||
25 | licensure under this Act; or |
| |||||||
| |||||||
1 | (7) any collection agency licensed under the | ||||||
2 | Collection Agency Act that is collecting post-default | ||||||
3 | debt.
| ||||||
4 | Section 15-10. Licensee name. | ||||||
5 | (a) No person, partnership, association, corporation, | ||||||
6 | limited liability company, or other entity engaged in the | ||||||
7 | business regulated by this Act shall operate such business | ||||||
8 | under a name other than the real names of the entity and | ||||||
9 | individuals conducting such business. Such business may in | ||||||
10 | addition operate under an assumed corporate name pursuant to | ||||||
11 | the Business Corporation Act of 1983, an assumed limited | ||||||
12 | liability company name pursuant to the Limited Liability | ||||||
13 | Company Act, or an assumed business name pursuant to the | ||||||
14 | Assumed Business Name Act. | ||||||
15 | (b) A knowing violation of this Section constitutes an | ||||||
16 | unlawful practice within the meaning of this Act and, in | ||||||
17 | addition to the administrative relief available under this Act, | ||||||
18 | may be prosecuted for the commission of a Class A misdemeanor. | ||||||
19 | A person who is convicted of a second or subsequent violation | ||||||
20 | of this Section is guilty of a Class 4 felony.
| ||||||
21 | Section 15-15. Application process; investigation; fees. | ||||||
22 | (a) The Secretary shall issue a license upon completion of | ||||||
23 | all of the following: | ||||||
24 | (1) the filing of an application for license with the
|
| |||||||
| |||||||
1 | Secretary or the Nationwide Mortgage Licensing System and | ||||||
2 | Registry as approved by the Secretary; | ||||||
3 | (2) the filing with the Secretary of a listing of
| ||||||
4 | judgments entered against, and bankruptcy petitions by, | ||||||
5 | the license applicant for the preceding 10 years; | ||||||
6 | (3) the payment, in certified funds, of investigation
| ||||||
7 | and application fees, the total of which shall be in an | ||||||
8 | amount equal to $1,000 for an initial application and $800 | ||||||
9 | for a background investigation; | ||||||
10 | (4) the filing of an audited balance sheet, including | ||||||
11 | all footnotes prepared by a certified public accountant in | ||||||
12 | accordance with generally accepted accounting principles | ||||||
13 | and generally accepted auditing standards; notwithstanding | ||||||
14 | the requirements of this subsection, an applicant that is a | ||||||
15 | subsidiary may submit audited consolidated financial | ||||||
16 | statements of its parent, intermediary parent, or ultimate | ||||||
17 | parent as long as the consolidated statements are supported | ||||||
18 | by consolidating statements that include the applicant's | ||||||
19 | financial statement; if the consolidating statements are | ||||||
20 | unaudited, the applicant's chief financial officer shall | ||||||
21 | attest to the applicant's financial statements disclosed | ||||||
22 | in the consolidating statements; and | ||||||
23 | (5) an investigation of the averments required by
| ||||||
24 | Section 15-30, which investigation must allow the | ||||||
25 | Secretary to issue positive findings stating that the | ||||||
26 | financial responsibility, experience, character, and |
| |||||||
| |||||||
1 | general fitness of the license applicant and of the members | ||||||
2 | thereof if the license applicant is a partnership or | ||||||
3 | association, of the officers and directors thereof if the | ||||||
4 | license applicant is a corporation, and of the managers and | ||||||
5 | members that retain any authority or responsibility under | ||||||
6 | the operating agreement if the license applicant is a | ||||||
7 | limited liability company are such as to command the | ||||||
8 | confidence of the community and to warrant belief that the | ||||||
9 | business will be operated honestly, fairly, and | ||||||
10 | efficiently within the purpose of this Act; if the | ||||||
11 | Secretary does not so find, he or she shall not issue the | ||||||
12 | license, and he or she shall notify the license applicant | ||||||
13 | of the denial. | ||||||
14 | The Secretary may impose conditions on a license if the | ||||||
15 | Secretary determines that those conditions are necessary or | ||||||
16 | appropriate. These conditions shall be imposed in writing and | ||||||
17 | shall continue in effect for the period prescribed by the | ||||||
18 | Secretary. | ||||||
19 | (b) All licenses shall be issued to the license applicant. | ||||||
20 | Upon receipt of the license, a student loan servicing licensee | ||||||
21 | shall be authorized to engage in the business regulated by this | ||||||
22 | Act. The license shall remain in full force and effect until it | ||||||
23 | expires without renewal, is surrendered by the licensee, or | ||||||
24 | revoked or suspended as hereinafter provided.
| ||||||
25 | Section 15-20. Application form. |
| |||||||
| |||||||
1 | (a) Application for a student loan servicer license must be | ||||||
2 | made in accordance with Section 15-40 and, if applicable, in | ||||||
3 | accordance with requirements of the Nationwide Mortgage | ||||||
4 | Licensing System and Registry. The application shall be in | ||||||
5 | writing, under oath, and on a form obtained from and prescribed | ||||||
6 | by the Secretary, or may be submitted electronically, with | ||||||
7 | attestation, to the Nationwide Mortgage Licensing System and | ||||||
8 | Registry. | ||||||
9 | (b) The application shall contain the name and complete | ||||||
10 | business and residential address or addresses of the license | ||||||
11 | applicant. If the license applicant is a partnership, | ||||||
12 | association, corporation, or other form of business | ||||||
13 | organization, the application shall contain the names and | ||||||
14 | complete business and residential addresses of each member, | ||||||
15 | director, and principal officer thereof. The application shall | ||||||
16 | also include a description of the activities of the license | ||||||
17 | applicant in such detail and for such periods as the Secretary | ||||||
18 | may require, including all of the following: | ||||||
19 | (1) an affirmation of financial solvency noting such
| ||||||
20 | capitalization requirements as may be required by the | ||||||
21 | Secretary and access to such credit as may be required by | ||||||
22 | the Secretary; | ||||||
23 | (2) an affirmation that the license applicant or its
| ||||||
24 | members, directors, or principals, as may be appropriate, | ||||||
25 | are at least 18 years of age; | ||||||
26 | (3) information as to the character, fitness,
|
| |||||||
| |||||||
1 | financial and business responsibility, background, | ||||||
2 | experience, and criminal record of any (i) person, entity, | ||||||
3 | or ultimate equitable owner that owns or controls, directly | ||||||
4 | or indirectly, 10% or more of any class of stock of the | ||||||
5 | license applicant; (ii) person, entity, or ultimate | ||||||
6 | equitable owner that is not a depository institution, as | ||||||
7 | defined in Section 1007.50 of the Savings Bank Act, that | ||||||
8 | lends, provides, or infuses, directly or indirectly, in any | ||||||
9 | way, funds to or into a license applicant in an amount | ||||||
10 | equal to or more than 10% of the license applicant's net | ||||||
11 | worth; (iii) person, entity, or ultimate equitable owner | ||||||
12 | that controls, directly or indirectly, the election of 25% | ||||||
13 | or more of the members of the board of directors of a | ||||||
14 | license applicant; or (iv) person, entity, or ultimate | ||||||
15 | equitable owner that the Secretary finds influences | ||||||
16 | management of the license applicant; | ||||||
17 | (4) upon written request by the licensee and
| ||||||
18 | notwithstanding the provisions of paragraphs (1), (2), and | ||||||
19 | (3) of this subsection, the Secretary may permit the | ||||||
20 | licensee to omit all or part of the information required by | ||||||
21 | those paragraphs if, in lieu of the omitted information, | ||||||
22 | the licensee submits an affidavit stating that the | ||||||
23 | information submitted on the licensee's previous renewal | ||||||
24 | application is still true and accurate; the Secretary may | ||||||
25 | adopt rules prescribing the form and content of the | ||||||
26 | affidavit that are necessary to accomplish the purposes of |
| |||||||
| |||||||
1 | this Section; and | ||||||
2 | (5) such other information as required by rules
of the | ||||||
3 | Secretary.
| ||||||
4 | Section 15-25. Student loan servicer license application | ||||||
5 | and issuance. | ||||||
6 | (a) Applicants for a license shall apply in a form | ||||||
7 | prescribed by the Secretary. Each form shall contain content as | ||||||
8 | set forth by rule, regulation, instruction, or procedure of the | ||||||
9 | Secretary and may be changed or updated as necessary by the | ||||||
10 | Secretary in order to carry out the purposes of this Act. | ||||||
11 | (b) In order to fulfill the purposes of this Act, the | ||||||
12 | Secretary is authorized to establish relationships or | ||||||
13 | contracts with the Nationwide Mortgage Licensing System and | ||||||
14 | Registry or other entities designated by the Nationwide | ||||||
15 | Mortgage Licensing System and Registry to collect and maintain | ||||||
16 | records and process transaction fees or other fees related to | ||||||
17 | licensees or other persons subject to this Act. | ||||||
18 | (c) In connection with an application for licensing, the | ||||||
19 | applicant may be required, at a minimum, to furnish to the | ||||||
20 | Nationwide Mortgage Licensing System and Registry information | ||||||
21 | concerning the applicant's identity, including: | ||||||
22 | (1) fingerprints for submission to the Federal Bureau
| ||||||
23 | of Investigation or any governmental agency or entity | ||||||
24 | authorized to receive such information for a State, | ||||||
25 | national, and international criminal history background |
| |||||||
| |||||||
1 | check; and | ||||||
2 | (2) personal history and experience in a form
| ||||||
3 | prescribed by the Nationwide Mortgage Licensing System and | ||||||
4 | Registry, including the submission of authorization for | ||||||
5 | the Nationwide Mortgage Licensing System and Registry and | ||||||
6 | the Secretary to obtain: | ||||||
7 | (A) an independent credit report obtained from a
| ||||||
8 | consumer reporting agency described in Section 603(p) | ||||||
9 | of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); | ||||||
10 | and | ||||||
11 | (B) information related to any administrative,
| ||||||
12 | civil, or criminal findings by any governmental | ||||||
13 | jurisdiction. | ||||||
14 | (d) For the purposes of this Section, and in order to | ||||||
15 | reduce the points of contact that the Federal Bureau of | ||||||
16 | Investigation may have to maintain for purposes of subsection | ||||||
17 | (c) of this Section, the Secretary may use the Nationwide | ||||||
18 | Mortgage Licensing System and Registry as a channeling agent | ||||||
19 | for requesting information from and distributing information | ||||||
20 | to the federal Department of Justice or any governmental | ||||||
21 | agency. | ||||||
22 | (e) For the purposes of this Section, and in order to | ||||||
23 | reduce the points of contact that the Secretary may have to | ||||||
24 | maintain for purposes of paragraph (2) of subsection (c) of | ||||||
25 | this Section, the Secretary may use the Nationwide Mortgage | ||||||
26 | Licensing System and Registry as a channeling agent for |
| |||||||
| |||||||
1 | requesting and distributing information to and from any source | ||||||
2 | as directed by the Secretary.
| ||||||
3 | Section 15-30. Averments of licensee. Each application for | ||||||
4 | license shall be accompanied by the following averments stating | ||||||
5 | that the applicant: | ||||||
6 | (1) will file with the Secretary or Nationwide
Mortgage | ||||||
7 | Licensing System and Registry, as applicable, when due, any | ||||||
8 | report or reports that it is required to file under any of | ||||||
9 | the provisions of this Act; | ||||||
10 | (2) has not committed a crime against the law of this
| ||||||
11 | State, any other state, or of the United States involving | ||||||
12 | moral turpitude or fraudulent or dishonest dealing, and | ||||||
13 | that no final judgment has been entered against it in a | ||||||
14 | civil action upon grounds of fraud, misrepresentation, or | ||||||
15 | deceit that has not been previously reported to the | ||||||
16 | Secretary; | ||||||
17 | (3) has not engaged in any conduct that would be
cause | ||||||
18 | for denial of a license; | ||||||
19 | (4) has not become insolvent; | ||||||
20 | (5) has not submitted an application for a license
| ||||||
21 | under this Act that contains a material misstatement; | ||||||
22 | (6) has not demonstrated by course of conduct,
| ||||||
23 | negligence or incompetence in performing any act for which | ||||||
24 | it is required to hold a license under this Act; | ||||||
25 | (7) will advise the Secretary in writing or the
|
| |||||||
| |||||||
1 | Nationwide Mortgage Licensing System and Registry, as | ||||||
2 | applicable, of any changes to the information submitted on | ||||||
3 | the most recent application for license or averments of | ||||||
4 | record within 30 days of the change; the written notice | ||||||
5 | must be signed in the same form as the application for the | ||||||
6 | license being amended; | ||||||
7 | (8) will comply with the provisions of this Act and
| ||||||
8 | with any lawful order, rule, or regulation made or issued | ||||||
9 | under the provisions of this Act; | ||||||
10 | (9) will submit to periodic examination by the
| ||||||
11 | Secretary as required by this Act; and | ||||||
12 | (10) will advise the Secretary in writing of
judgments | ||||||
13 | entered against and bankruptcy petitions by the license | ||||||
14 | applicant within 5 days after the occurrence. | ||||||
15 | A licensee who fails to fulfill the obligations of an | ||||||
16 | averment, fails to comply with averments made, or otherwise | ||||||
17 | violates any of the averments made under this Section shall be | ||||||
18 | subject to the penalties of this Act.
| ||||||
19 | Section 15-35. Refusal to issue license. The Secretary | ||||||
20 | shall refuse to issue or renew a license if: | ||||||
21 | (1) it is determined that the applicant is not in
| ||||||
22 | compliance with any provisions of this Act; | ||||||
23 | (2) there is substantial continuity between the
| ||||||
24 | applicant and any violator of this Act; or | ||||||
25 | (3) the Secretary cannot make the findings
specified in |
| |||||||
| |||||||
1 | subsection (a) of Section 15-15 of this Act.
| ||||||
2 | Section 15-40. License issuance and renewal; fees.
| ||||||
3 | (a) Licenses shall be renewed every year using the common | ||||||
4 | renewal date of the Nationwide Mortgage Licensing System and | ||||||
5 | Registry, as adopted by the Secretary. Properly completed | ||||||
6 | renewal application forms and filing fees may be received by | ||||||
7 | the Secretary 60 days prior to the license expiration date, | ||||||
8 | but, to be deemed timely, the completed renewal application | ||||||
9 | forms and filing fees must be received by the Secretary no | ||||||
10 | later than 30 days prior to the license expiration date. | ||||||
11 | (b) It shall be the responsibility of each licensee to | ||||||
12 | accomplish renewal of its license. Failure by a licensee to | ||||||
13 | submit a properly completed renewal application form and fees | ||||||
14 | in a timely fashion, absent a written extension from the | ||||||
15 | Secretary, shall result in the license becoming inactive. | ||||||
16 | (c) No activity regulated by this Act shall be conducted by | ||||||
17 | the licensee when a license becomes inactive. An inactive | ||||||
18 | license may be reactivated by the Secretary upon payment of the | ||||||
19 | renewal fee and payment of a reactivation fee equal to the | ||||||
20 | renewal fee. | ||||||
21 | (d) A licensee ceasing an activity or activities regulated | ||||||
22 | by this Act and desiring to no longer be licensed shall so | ||||||
23 | inform the Secretary in writing and, at the same time, convey | ||||||
24 | any license issued and all other symbols or indicia of | ||||||
25 | licensure. The licensee shall include a plan for the withdrawal |
| |||||||
| |||||||
1 | from regulated business, including a timetable for the | ||||||
2 | disposition of the business, and comply with the surrender | ||||||
3 | guidelines or requirements of the Secretary. Upon receipt of | ||||||
4 | such written notice, the Secretary shall post the cancellation | ||||||
5 | or issue a certified statement canceling the license.
| ||||||
6 | ARTICLE 20. SUPERVISION | ||||||
7 | Section 20-5. Functions; powers; duties. The functions, | ||||||
8 | powers, and duties of the Secretary shall include the | ||||||
9 | following: | ||||||
10 | (1) to issue or refuse to issue any license as
provided | ||||||
11 | by this Act; | ||||||
12 | (2) to revoke or suspend for cause any license issued
| ||||||
13 | under this Act; | ||||||
14 | (3) to keep records of all licenses issued under this
| ||||||
15 | Act; | ||||||
16 | (4) to receive, consider, investigate, and act upon
| ||||||
17 | complaints made by any person in connection with any | ||||||
18 | student loan servicing licensee in this State; | ||||||
19 | (5) to prescribe the forms of and receive: | ||||||
20 | (A) applications for licenses; and | ||||||
21 | (B) all reports and all books and records
required | ||||||
22 | to be made by any licensee under this Act, including | ||||||
23 | annual audited financial statements and annual reports | ||||||
24 | of student loan activity; |
| |||||||
| |||||||
1 | (6) to adopt rules necessary and
proper for the | ||||||
2 | administration of this Act; | ||||||
3 | (7) to subpoena documents and witnesses and compel
| ||||||
4 | their attendance and production, to administer oaths, and | ||||||
5 | to require the production of any books, papers, or other | ||||||
6 | materials relevant to any inquiry authorized by this Act; | ||||||
7 | (8) to issue orders against any person if the
Secretary | ||||||
8 | has reasonable cause to believe that an unsafe, unsound, or | ||||||
9 | unlawful practice has occurred, is occurring, or is about | ||||||
10 | to occur; if any person has violated, is violating, or is | ||||||
11 | about to violate any law, rule, or written agreement with | ||||||
12 | the Secretary; or for the purpose of administering the | ||||||
13 | provisions of this Act and any rule adopted in accordance | ||||||
14 | with this Act; | ||||||
15 | (9) to address any inquiries to any licensee, or
the | ||||||
16 | officers thereof, in relation to its activities and | ||||||
17 | conditions, or any other matter connected with its affairs, | ||||||
18 | and it shall be the duty of any licensee or person so | ||||||
19 | addressed to promptly reply in writing to those inquiries; | ||||||
20 | the Secretary may also require reports from any licensee at | ||||||
21 | any time the Secretary may deem desirable; | ||||||
22 | (10) to examine the books and records of every
licensee | ||||||
23 | under this Act; | ||||||
24 | (11) to enforce provisions of this Act; | ||||||
25 | (12) to levy fees, fines, and charges for services
| ||||||
26 | performed in administering this Act; the aggregate of all |
| |||||||
| |||||||
1 | fees collected by the Secretary on and after the effective | ||||||
2 | date of this Act shall be paid promptly after receipt, | ||||||
3 | accompanied by a detailed statement thereof, into the Bank | ||||||
4 | and Trust Company Fund under Section 20-10; the amounts | ||||||
5 | deposited into that Fund shall be used for the ordinary and | ||||||
6 | contingent expenses of the Department; nothing in this Act | ||||||
7 | shall prevent the continuation of the practice of paying | ||||||
8 | expenses involving salaries, retirement, social security, | ||||||
9 | and State-paid insurance of State officers by | ||||||
10 | appropriation from the General Revenue Fund; | ||||||
11 | (13) to appoint examiners, supervisors, experts, and
| ||||||
12 | special assistants as needed to effectively and | ||||||
13 | efficiently administer this Act; | ||||||
14 | (14) to conduct hearings for the purpose of: | ||||||
15 | (A) appeals of orders of the Secretary; | ||||||
16 | (B) suspensions or revocations of licenses, or
| ||||||
17 | fining of licensees; | ||||||
18 | (C) investigating: | ||||||
19 | (i) complaints against licensees; or | ||||||
20 | (ii) annual gross delinquency rates; and | ||||||
21 | (D) carrying out the purposes of this Act; | ||||||
22 | (15) to exercise exclusive visitorial power over a
| ||||||
23 | licensee unless otherwise authorized by this Act or as | ||||||
24 | vested in the courts, or upon prior consultation with the | ||||||
25 | Secretary, a foreign student loan servicing regulator with | ||||||
26 | an appropriate supervisory interest in the parent or |
| |||||||
| |||||||
1 | affiliate of a licensee; | ||||||
2 | (16) to enter into cooperative agreements with state
| ||||||
3 | regulatory authorities of other states to provide for | ||||||
4 | examination of corporate offices or branches of those | ||||||
5 | states and to accept reports of such examinations; | ||||||
6 | (17) to assign an examiner or examiners to monitor the
| ||||||
7 | affairs of a licensee with whatever frequency the Secretary | ||||||
8 | determines appropriate and to charge the licensee for | ||||||
9 | reasonable and necessary expenses of the Secretary if in | ||||||
10 | the opinion of the Secretary an emergency exists or appears | ||||||
11 | likely to occur; | ||||||
12 | (18) to impose civil penalties of up to $50 per day
| ||||||
13 | against a licensee for failing to respond to a regulatory | ||||||
14 | request or reporting requirement; and | ||||||
15 | (19) to enter into agreements in connection with the
| ||||||
16 | Nationwide Mortgage Licensing System and Registry.
| ||||||
17 | Section 20-10. Bank and Trust Company Fund. All moneys | ||||||
18 | received by the Secretary under this Act in conjunction with | ||||||
19 | the provisions relating to student loan servicers shall be paid | ||||||
20 | into and all expenses incurred by the Secretary under this Act | ||||||
21 | in conjunction with the provisions relating to student loan | ||||||
22 | servicers shall be paid from the Bank and Trust Company Fund.
| ||||||
23 | Section 20-15. Examination; prohibited activities. | ||||||
24 | (a) The business affairs of a licensee under this Act shall |
| |||||||
| |||||||
1 | be examined for compliance with this Act as often as the | ||||||
2 | Secretary deems necessary and proper. The Secretary may adopt | ||||||
3 | rules with respect to the frequency and manner of examination. | ||||||
4 | The Secretary shall appoint a suitable person to perform such | ||||||
5 | examination. The Secretary and his or her appointees may | ||||||
6 | examine the entire books, records, documents, and operations of | ||||||
7 | each licensee and its subsidiary, affiliate, or agent, and may | ||||||
8 | examine any of the licensee's or its subsidiary's, affiliate's, | ||||||
9 | or agent's officers, directors, employees, and agents under | ||||||
10 | oath. | ||||||
11 | (b) The Secretary shall prepare a sufficiently detailed | ||||||
12 | report of each licensee's examination, shall issue a copy of | ||||||
13 | such report to each licensee's principals, officers, or | ||||||
14 | directors, and shall take appropriate steps to ensure | ||||||
15 | correction of violations of this Act. | ||||||
16 | (c) Affiliates of a licensee shall be subject to | ||||||
17 | examination by the Secretary on the same terms as the licensee, | ||||||
18 | but only when reports from or examination of a licensee | ||||||
19 | provides for documented evidence of unlawful activity between a | ||||||
20 | licensee and affiliate benefiting, affecting, or deriving from | ||||||
21 | the activities regulated by this Act. | ||||||
22 | (d) The expenses of any examination of the licensee and | ||||||
23 | affiliates shall be borne by the licensee and assessed by the | ||||||
24 | Secretary as may be established by rule. | ||||||
25 | (e) Upon completion of the examination, the Secretary shall | ||||||
26 | issue a report to the licensee. All confidential supervisory |
| |||||||
| |||||||
1 | information, including the examination report and the work | ||||||
2 | papers of the report, shall belong to the Secretary's office | ||||||
3 | and may not be disclosed to anyone other than the licensee, law | ||||||
4 | enforcement officials or other regulatory agencies that have an | ||||||
5 | appropriate regulatory interest as determined by the | ||||||
6 | Secretary, or to a party presenting a lawful subpoena to the | ||||||
7 | Department. The Secretary may, through the Attorney General, | ||||||
8 | immediately appeal to the court of jurisdiction the disclosure | ||||||
9 | of such confidential supervisory information and seek a stay of | ||||||
10 | the subpoena pending the outcome of the appeal. Reports | ||||||
11 | required of licensees by the Secretary under this Act and | ||||||
12 | results of examinations performed by the Secretary under this | ||||||
13 | Act shall be the property of only the Secretary, but may be | ||||||
14 | shared with the licensee. Access under this Act to the books | ||||||
15 | and records of each licensee shall be limited to the Secretary | ||||||
16 | and his or her agents as provided in this Act and to the | ||||||
17 | licensee and its authorized agents and designees. No other | ||||||
18 | person shall have access to the books and records of a licensee | ||||||
19 | under this Act. Any person upon whom a demand for production of | ||||||
20 | confidential supervisory information is made, whether by | ||||||
21 | subpoena, order, or other judicial or administrative process, | ||||||
22 | must withhold production of the confidential supervisory | ||||||
23 | information and must notify the Secretary of the demand, at | ||||||
24 | which time the Secretary is authorized to intervene for the | ||||||
25 | purpose of enforcing the limitations of this Section or seeking | ||||||
26 | the withdrawal or termination of the attempt to compel |
| |||||||
| |||||||
1 | production of the confidential supervisory information. The | ||||||
2 | Secretary may impose any conditions and limitations on the | ||||||
3 | disclosure of confidential supervisory information that are | ||||||
4 | necessary to protect the confidentiality of that information. | ||||||
5 | Except as authorized by the Secretary, no person obtaining | ||||||
6 | access to confidential supervisory information may make a copy | ||||||
7 | of the confidential supervisory information. The Secretary may | ||||||
8 | condition a decision to disclose confidential supervisory | ||||||
9 | information on entry of a protective order by the court or | ||||||
10 | administrative tribunal presiding in the particular case or on | ||||||
11 | a written agreement of confidentiality. In a case in which a | ||||||
12 | protective order or agreement has already been entered between | ||||||
13 | parties other than the Secretary, the Secretary may | ||||||
14 | nevertheless condition approval for release of confidential | ||||||
15 | supervisory information upon the inclusion of additional or | ||||||
16 | amended provisions in the protective order. The Secretary may | ||||||
17 | authorize a party who obtained the records for use in one case | ||||||
18 | to provide them to another party in another case, subject to | ||||||
19 | any conditions that the Secretary may impose on either or both | ||||||
20 | parties. The requester shall promptly notify other parties to a | ||||||
21 | case of the release of confidential supervisory information | ||||||
22 | obtained and, upon entry of a protective order, shall provide | ||||||
23 | copies of confidential supervisory information to the other | ||||||
24 | parties. | ||||||
25 | (f) The Secretary and employees of the Department shall be | ||||||
26 | subject to the restrictions provided in Section 2.5 of the |
| |||||||
| |||||||
1 | Division of Banking Act, including, without limitation, the | ||||||
2 | restrictions on (i) owning shares of stock or holding any other | ||||||
3 | equity interest in an entity regulated under this Act or in any | ||||||
4 | corporation or company that owns or controls an entity | ||||||
5 | regulated under this Act; (ii) being an officer, director, | ||||||
6 | employee, or agent of an entity regulated under this Act; and | ||||||
7 | (iii) obtaining a loan or accepting a gratuity from an entity | ||||||
8 | regulated under this Act. | ||||||
9 | (g) After the initial examination for those licensees whose | ||||||
10 | only student loan activity is servicing fewer than 1,000 | ||||||
11 | Illinois student loans, the examination required in subsection | ||||||
12 | (a) may be waived upon submission of a letter from the | ||||||
13 | licensee's independent certified auditor that the licensee | ||||||
14 | serviced fewer than 1,000 Illinois student loans during the | ||||||
15 | year in which the audit was performed.
| ||||||
16 | Section 20-20. Subpoena power of the Secretary. | ||||||
17 | (a) The Secretary shall have the power to issue and to | ||||||
18 | serve subpoenas and subpoenas duces tecum to compel the | ||||||
19 | attendance of witnesses and the production of all books, | ||||||
20 | accounts, records, and other documents and materials relevant | ||||||
21 | to an examination or investigation. The Secretary, or his or | ||||||
22 | her duly authorized representative, shall have power to | ||||||
23 | administer oaths and affirmations to any person. | ||||||
24 | (b) In the event of noncompliance with a subpoena or | ||||||
25 | subpoena duces tecum issued or caused to be issued by the |
| |||||||
| |||||||
1 | Secretary, the Secretary may, through the Attorney General, | ||||||
2 | petition the circuit court of the county in which the person | ||||||
3 | subpoenaed resides or has its principal place of business for | ||||||
4 | an order requiring the subpoenaed person to appear and testify | ||||||
5 | and to produce such books, accounts, records, and other | ||||||
6 | documents as are specified in the subpoena duces tecum. The | ||||||
7 | court may grant injunctive relief restraining the person from | ||||||
8 | advertising, promoting, soliciting, entering into, offering to | ||||||
9 | enter into, continuing, or completing any student loan | ||||||
10 | servicing transaction. The court may grant other relief, | ||||||
11 | including, but not limited to, the restraint, by injunction or | ||||||
12 | appointment of a receiver, of any transfer, pledge, assignment, | ||||||
13 | or other disposition of the person's assets or any concealment, | ||||||
14 | alteration, destruction, or other disposition of books, | ||||||
15 | accounts, records, or other documents and materials as the | ||||||
16 | court deems appropriate, until the person has fully complied | ||||||
17 | with the subpoena or subpoena duces tecum and the Secretary has | ||||||
18 | completed an investigation or examination. | ||||||
19 | (c) If it appears to the Secretary that the compliance with | ||||||
20 | a subpoena or subpoena duces tecum issued or caused to be | ||||||
21 | issued by the Secretary pursuant to this Section is essential | ||||||
22 | to an investigation or examination, the Secretary, in addition | ||||||
23 | to the other remedies provided for in this Act, may, through | ||||||
24 | the Attorney General, apply for relief to the circuit court of | ||||||
25 | the county in which the subpoenaed person resides or has its | ||||||
26 | principal place of business. The court shall thereupon direct |
| |||||||
| |||||||
1 | the issuance of an order against the subpoenaed person | ||||||
2 | requiring sufficient bond conditioned on compliance with the | ||||||
3 | subpoena or subpoena duces tecum. The court shall cause to be | ||||||
4 | endorsed on the order a suitable amount of bond or payment | ||||||
5 | pursuant to which the person named in the order shall be freed, | ||||||
6 | having a due regard to the nature of the case. | ||||||
7 | (d) In addition, the Secretary may, through the Attorney | ||||||
8 | General, seek a writ of attachment or an equivalent order from | ||||||
9 | the circuit court having jurisdiction over the person who has | ||||||
10 | refused to obey a subpoena, who has refused to give testimony, | ||||||
11 | or who has refused to produce the matters described in the | ||||||
12 | subpoena duces tecum.
| ||||||
13 | Section 20-25. Report required of licensee; false | ||||||
14 | statements; delay; penalties. | ||||||
15 | (a) In addition to any reports required under this Act, | ||||||
16 | every licensee shall file any other report the Secretary | ||||||
17 | requests. | ||||||
18 | (b) Any licensee or any officer, director, employee, or | ||||||
19 | agent of any licensee who fails to file any report required by | ||||||
20 | this Act, including those under subsection (a), or who | ||||||
21 | deliberately, willfully, or knowingly makes, subscribes to, or | ||||||
22 | causes to be made any false entry with intent to deceive the | ||||||
23 | Secretary or his or her appointees or who purposely causes | ||||||
24 | unreasonable delay in filing such reports, shall be guilty of a | ||||||
25 | Class 4 Felony.
|
| |||||||
| |||||||
1 | Section 20-30. Suspension; revocation of licenses; fines. | ||||||
2 | (a) Upon written notice to a licensee, the Secretary may | ||||||
3 | suspend or revoke any license issued pursuant to this Act if, | ||||||
4 | in the notice, he or she makes a finding of one or more of the | ||||||
5 | following: | ||||||
6 | (1) that through separate acts or an act or a course of
| ||||||
7 | conduct, the licensee has violated any provisions of this | ||||||
8 | Act, any rule adopted by the Secretary, or any other law, | ||||||
9 | rule, or regulation of this State or the United States; | ||||||
10 | (2) that any fact or condition exists that, if it had
| ||||||
11 | existed at the time of the original application for the | ||||||
12 | license, would have warranted the Secretary in refusing | ||||||
13 | originally to issue the license; or | ||||||
14 | (3) that if a licensee is other than an individual, any
| ||||||
15 | ultimate equitable owner, officer, director, or member of | ||||||
16 | the licensed partnership, association, corporation, or | ||||||
17 | other entity has acted or failed to act in a way that would | ||||||
18 | be cause for suspending or revoking a license to that party | ||||||
19 | as an individual. | ||||||
20 | (b) No license shall be suspended or revoked, except as | ||||||
21 | provided in this Section, nor shall any licensee be fined | ||||||
22 | without notice of his or her right to a hearing as provided in | ||||||
23 | Section 20-65 of this Act. | ||||||
24 | (c) The Secretary, on good cause shown that an emergency | ||||||
25 | exists, may suspend any license for a period not exceeding 180 |
| |||||||
| |||||||
1 | days, pending investigation. | ||||||
2 | (d) The provisions of subsection (d) of Section 15-40 of | ||||||
3 | this Act shall not affect a licensee's civil or criminal | ||||||
4 | liability for acts committed prior to surrender of a license. | ||||||
5 | (e) No revocation, suspension, or surrender of any license | ||||||
6 | shall impair or affect the obligation of any pre-existing | ||||||
7 | lawful contract between the licensee and any person. | ||||||
8 | (f) Every license issued under this Act shall remain in | ||||||
9 | force and effect until the license expires without renewal, is | ||||||
10 | surrendered, is revoked, or is suspended in accordance with the | ||||||
11 | provisions of this Act, but the Secretary shall have authority | ||||||
12 | to reinstate a suspended license or to issue a new license to a | ||||||
13 | licensee whose license has been revoked if no fact or condition | ||||||
14 | then exists which would have warranted the Secretary in | ||||||
15 | refusing originally to issue that license under this Act. | ||||||
16 | (g) Whenever the Secretary revokes or suspends a license | ||||||
17 | issued pursuant to this Act or fines a licensee under this Act, | ||||||
18 | he or she shall execute a written order to that effect. The | ||||||
19 | Secretary shall post notice of the order on an agency Internet | ||||||
20 | site maintained by the Secretary or on the Nationwide Mortgage | ||||||
21 | Licensing System and Registry and shall serve a copy of the | ||||||
22 | order upon the licensee. Any such order may be reviewed in the | ||||||
23 | manner provided by Section 20-65 of this Act. | ||||||
24 | (h) If the Secretary finds any person in violation of the | ||||||
25 | grounds set forth in subsection (i), he or she may enter an | ||||||
26 | order imposing one or more of the following penalties: |
| |||||||
| |||||||
1 | (1) revocation of license; | ||||||
2 | (2) suspension of a license subject to reinstatement
| ||||||
3 | upon satisfying all reasonable conditions the Secretary | ||||||
4 | may specify; | ||||||
5 | (3) placement of the licensee or applicant on
probation | ||||||
6 | for a period of time and subject to all reasonable | ||||||
7 | conditions as the Secretary may specify; | ||||||
8 | (4) issuance of a reprimand; | ||||||
9 | (5) imposition of a fine not to exceed $25,000 for
each | ||||||
10 | count of separate offense; except that a fine may be | ||||||
11 | imposed not to exceed $75,000 for each separate count of | ||||||
12 | offense of paragraph (2) of subsection (i) of this Section; | ||||||
13 | or | ||||||
14 | (6) denial of a license. | ||||||
15 | (i) The following acts shall constitute grounds for which | ||||||
16 | the disciplinary actions specified in subsection (h) may be | ||||||
17 | taken: | ||||||
18 | (1) being convicted or found guilty, regardless of
| ||||||
19 | pendency of an appeal, of a crime in any jurisdiction that | ||||||
20 | involves fraud, dishonest dealing, or any other act of | ||||||
21 | moral turpitude; | ||||||
22 | (2) fraud, misrepresentation, deceit, or negligence in
| ||||||
23 | any student loan transaction; | ||||||
24 | (3) a material or intentional misstatement of fact on
| ||||||
25 | an initial or renewal application; | ||||||
26 | (4) insolvency or filing under any provision of the |
| |||||||
| |||||||
1 | federal
Bankruptcy Code as a debtor; | ||||||
2 | (5) failure to account or deliver to any person any
| ||||||
3 | property, such as any money, fund, deposit, check, draft, | ||||||
4 | or other document or thing of value, that has come into his | ||||||
5 | or her hands and that is not his or her property or that he | ||||||
6 | or she is not in law or equity entitled to retain, under | ||||||
7 | the circumstances and at the time which has been agreed | ||||||
8 | upon or is required by law or, in the absence of a fixed | ||||||
9 | time, upon demand of the person entitled to such accounting | ||||||
10 | and delivery; | ||||||
11 | (6) failure to disburse funds in accordance with
| ||||||
12 | agreements; | ||||||
13 | (7) having a license, or the equivalent, to practice
| ||||||
14 | any profession or occupation revoked, suspended, or | ||||||
15 | otherwise acted against, including the denial of licensure | ||||||
16 | by a licensing authority of this State or another state, | ||||||
17 | territory, or country for fraud, dishonest dealing, or any | ||||||
18 | other act of moral turpitude; | ||||||
19 | (8) failure to comply with an order of the
Secretary or | ||||||
20 | rule made or issued under the provisions of this Act; | ||||||
21 | (9) engaging in activities regulated by this Act
| ||||||
22 | without a current, active license unless specifically | ||||||
23 | exempted by this Act; | ||||||
24 | (10) failure to pay in a timely manner any fee,
charge, | ||||||
25 | or fine under this Act; | ||||||
26 | (11) failure to maintain, preserve, and keep
available |
| |||||||
| |||||||
1 | for examination all books, accounts, or other documents | ||||||
2 | required by the provisions of this Act and the rules of the | ||||||
3 | Secretary; | ||||||
4 | (12) refusing, obstructing, evading, or unreasonably
| ||||||
5 | delaying an investigation, information request, or | ||||||
6 | examination authorized under this Act, or refusing, | ||||||
7 | obstructing, evading, or unreasonably delaying compliance | ||||||
8 | with the Secretary's subpoena or subpoena duces tecum; and | ||||||
9 | (13) failure to comply with or a violation of any
| ||||||
10 | provision of this Act. | ||||||
11 | (j) A licensee shall be subject to the disciplinary actions | ||||||
12 | specified in this Act for violations of subsection (i) by any | ||||||
13 | officer, director, shareholder, joint venture, partner, | ||||||
14 | ultimate equitable owner, or employee of the licensee. | ||||||
15 | (k) A licensee shall be subject to suspension or revocation | ||||||
16 | for unauthorized employee actions only if there is a pattern of | ||||||
17 | repeated violations by employees or the licensee has knowledge | ||||||
18 | of the violations or there is substantial harm to a consumer. | ||||||
19 | (l) Procedures for surrender of a license include the | ||||||
20 | following: | ||||||
21 | (1) The Secretary may, after 10 days' notice by
| ||||||
22 | certified mail to the licensee at the address set forth on | ||||||
23 | the license, stating the contemplated action and in general | ||||||
24 | the grounds for the contemplated action and the date, time, | ||||||
25 | and place of a hearing thereon, and after providing the | ||||||
26 | licensee with a reasonable opportunity to be heard prior to |
| |||||||
| |||||||
1 | such action, fine such licensee an amount not exceeding | ||||||
2 | $25,000 per violation, or revoke or suspend any license | ||||||
3 | issued under this Act if he or she finds that: | ||||||
4 | (i) the licensee has failed to comply with any
| ||||||
5 | provision of this Act or any order, decision, finding, | ||||||
6 | rule, regulation, or direction of the Secretary | ||||||
7 | lawfully made pursuant to the authority of this Act; or | ||||||
8 | (ii) any fact or condition exists that, if it
had | ||||||
9 | existed at the time of the original application for the | ||||||
10 | license, clearly would have warranted the Secretary in | ||||||
11 | refusing to issue the license. | ||||||
12 | (2) Any licensee may submit an application to surrender
| ||||||
13 | a license, but, upon the Secretary approving the surrender, | ||||||
14 | it shall not affect the licensee's civil or criminal | ||||||
15 | liability for acts committed prior to surrender or entitle | ||||||
16 | the licensee to a return of any part of the license fee.
| ||||||
17 | Section 20-35. Investigation of complaints. The Secretary | ||||||
18 | shall at all times maintain staff and facilities adequate to | ||||||
19 | receive, record, and investigate complaints and inquiries made | ||||||
20 | by any person concerning this Act and any licensees under this | ||||||
21 | Act. Each licensee shall open its books, records, documents, | ||||||
22 | and offices wherever situated to the Secretary or his or her | ||||||
23 | appointees as needed to facilitate such investigations.
| ||||||
24 | Section 20-40. Additional investigation and examination |
| |||||||
| |||||||
1 | authority. In addition to any authority allowed under this Act, | ||||||
2 | the Secretary shall have the authority to conduct | ||||||
3 | investigations and examinations as follows: | ||||||
4 | (1) For purposes of initial licensing, license | ||||||
5 | renewal, license suspension, license conditioning, license | ||||||
6 | revocation or termination, or general or specific inquiry | ||||||
7 | or investigation to determine compliance with this Act, the | ||||||
8 | Secretary shall have the authority to access, receive, and | ||||||
9 | use any books, accounts, records, files, documents, | ||||||
10 | information, or evidence, including, but not limited to, | ||||||
11 | the following: | ||||||
12 | (A) criminal, civil, and administrative history
| ||||||
13 | information, including nonconviction data as specified | ||||||
14 | in the Criminal Code of 2012; | ||||||
15 | (B) personal history and experience information,
| ||||||
16 | including independent credit reports obtained from a | ||||||
17 | consumer reporting agency described in Section 603(p) | ||||||
18 | of the federal Fair Credit Reporting Act; and | ||||||
19 | (C) any other documents, information, or evidence
| ||||||
20 | the Secretary deems relevant to the inquiry or | ||||||
21 | investigation, regardless of the location, possession, | ||||||
22 | control, or custody of the documents, information, or | ||||||
23 | evidence. | ||||||
24 | (2) For the purposes of investigating violations or | ||||||
25 | complaints arising under this Act or for the purposes of | ||||||
26 | examination, the Secretary may review, investigate, or |
| |||||||
| |||||||
1 | examine any licensee, individual, or person subject to this | ||||||
2 | Act as often as necessary in order to carry out the | ||||||
3 | purposes of this Act. The Secretary may direct, subpoena, | ||||||
4 | or order the attendance of and examine under oath all | ||||||
5 | persons whose testimony may be required about the loans or | ||||||
6 | the business or subject matter of any such examination or | ||||||
7 | investigation, and may direct, subpoena, or order the | ||||||
8 | person to produce books, accounts, records, files, and any | ||||||
9 | other documents the Secretary deems relevant to the | ||||||
10 | inquiry. | ||||||
11 | (3) Each licensee, individual, or person subject to | ||||||
12 | this Act shall make available to the Secretary upon request | ||||||
13 | the books and records relating to the operations of the | ||||||
14 | licensee, individual, or person subject to this Act. The | ||||||
15 | Secretary shall have access to those books and records and | ||||||
16 | interview the officers, principals, employees, independent | ||||||
17 | contractors, agents, and customers of the licensee, | ||||||
18 | individual, or person subject to this Act concerning their | ||||||
19 | business. | ||||||
20 | (4) Each licensee, individual, or person subject to | ||||||
21 | this Act shall make or compile reports or prepare other | ||||||
22 | information as directed by the Secretary in order to carry | ||||||
23 | out the purposes of this Section, including, but not | ||||||
24 | limited to: | ||||||
25 | (A) accounting compilations; | ||||||
26 | (B) information lists and data concerning loan
|
| |||||||
| |||||||
1 | transactions in a format prescribed by the Secretary; | ||||||
2 | or | ||||||
3 | (C) other information deemed necessary to carry | ||||||
4 | out
the purposes of this Section. | ||||||
5 | (5) In making any examination or investigation | ||||||
6 | authorized by this Act, the Secretary may control access to | ||||||
7 | any documents and records of the licensee or person under | ||||||
8 | examination or investigation. The Secretary may take | ||||||
9 | possession of the documents and records or place a person | ||||||
10 | in exclusive charge of the documents and records in the | ||||||
11 | place where they are usually kept. During the period of | ||||||
12 | control, no person shall remove or attempt to remove any of | ||||||
13 | the documents or records, except pursuant to a court order | ||||||
14 | or with the consent of the Secretary. Unless the Secretary | ||||||
15 | has reasonable grounds to believe the documents or records | ||||||
16 | of the licensee have been, or are at risk of being altered | ||||||
17 | or destroyed for purposes of concealing a violation of this | ||||||
18 | Act, the licensee or owner of the documents and records | ||||||
19 | shall have access to the documents or records as necessary | ||||||
20 | to conduct its ordinary business affairs. | ||||||
21 | (6) In order to carry out the purposes of this Section, | ||||||
22 | the Secretary may: | ||||||
23 | (A) retain attorneys, accountants, or other
| ||||||
24 | professionals and specialists as examiners, auditors, | ||||||
25 | or investigators to conduct or assist in the conduct of | ||||||
26 | examinations or investigations; |
| |||||||
| |||||||
1 | (B) enter into agreements or relationships with
| ||||||
2 | other government officials or regulatory associations | ||||||
3 | in order to improve efficiencies and reduce regulatory | ||||||
4 | burden by sharing resources, standardized or uniform | ||||||
5 | methods or procedures, and documents, records, | ||||||
6 | information, or evidence obtained under this Section; | ||||||
7 | (C) use, hire, contract, or employ public or
| ||||||
8 | privately available analytical systems, methods, or | ||||||
9 | software to examine or investigate the licensee, | ||||||
10 | individual, or person subject to this Act; | ||||||
11 | (D) accept and rely on examination or | ||||||
12 | investigation
reports made by other government | ||||||
13 | officials, within or outside this State; or | ||||||
14 | (E) accept audit reports made by an independent
| ||||||
15 | certified public accountant for the licensee, | ||||||
16 | individual, or person subject to this Act in the course | ||||||
17 | of that part of the examination covering the same | ||||||
18 | general subject matter as the audit and may incorporate | ||||||
19 | the audit report in the report of the examination, | ||||||
20 | report of investigation, or other writing of the | ||||||
21 | Secretary. | ||||||
22 | (7) The authority of this Section shall remain in | ||||||
23 | effect, whether such a licensee, individual, or person | ||||||
24 | subject to this Act acts or claims to act under any | ||||||
25 | licensing or registration law of this State or claims to | ||||||
26 | act without the authority. |
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1 | (8) No licensee, individual, or person subject to | ||||||
2 | investigation or examination under this Section may | ||||||
3 | knowingly withhold, abstract, remove, mutilate, destroy, | ||||||
4 | or secrete any books, records, computer records, or other | ||||||
5 | information.
| ||||||
6 | Section 20-45. Confidential information. In hearings | ||||||
7 | conducted under this Act, information presented into evidence | ||||||
8 | that was acquired by the licensee when serving any individual | ||||||
9 | in connection with a student loan, including all financial | ||||||
10 | information of the individual, shall be deemed strictly | ||||||
11 | confidential and shall be made available only as part of the | ||||||
12 | record of a hearing under this Act or otherwise (i) when the | ||||||
13 | record is required, in its entirety, for purposes of judicial | ||||||
14 | review or (ii) upon the express written consent of the | ||||||
15 | individual served, or in the case of his or her death or | ||||||
16 | disability, the consent of his or her personal representative.
| ||||||
17 | Section 20-50. Confidentiality. | ||||||
18 | (a) In order to promote more effective regulation and | ||||||
19 | reduce regulatory burden through supervisory information | ||||||
20 | sharing, except as otherwise provided in federal Public Law | ||||||
21 | 110-289, Section 1512, the requirements under any federal law | ||||||
22 | or State law regarding the privacy or confidentiality of any | ||||||
23 | information or material provided to the Nationwide Mortgage | ||||||
24 | Licensing System and Registry, and any privilege arising under |
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1 | federal or State law, including the rules of any federal or | ||||||
2 | State court, with respect to such information or material, | ||||||
3 | shall continue to apply to information or material after the | ||||||
4 | information or material has been disclosed to the Nationwide | ||||||
5 | Mortgage Licensing System and Registry. The information and | ||||||
6 | material may be shared with all State and federal regulatory | ||||||
7 | officials with student loan industry oversight authority | ||||||
8 | without the loss of privilege or the loss of confidentiality | ||||||
9 | protections provided by federal law or State law. | ||||||
10 | (b) In order to promote more effective regulation and | ||||||
11 | reduce regulatory burden through supervisory information | ||||||
12 | sharing, the Secretary is authorized to enter agreements or | ||||||
13 | sharing arrangements with other governmental agencies, the | ||||||
14 | Conference of State Bank Supervisors or other associations | ||||||
15 | representing governmental agencies as established by rule, | ||||||
16 | regulation, or order of the Secretary. The sharing of | ||||||
17 | confidential supervisory information or any information or | ||||||
18 | material described in subsection (a) of this Section pursuant | ||||||
19 | to an agreement or sharing arrangement shall not result in the | ||||||
20 | loss of privilege or the loss of confidentiality protections | ||||||
21 | provided by federal law or State law. | ||||||
22 | (c) In order to promote more effective regulation and | ||||||
23 | reduce regulatory burden through supervisory information | ||||||
24 | sharing, information or material that is subject to a privilege | ||||||
25 | or confidentiality under subsection (a) of this Section shall | ||||||
26 | not be subject to the following: |
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1 | (1) disclosure under any State law governing the
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2 | disclosure to the public of information held by an officer | ||||||
3 | or an agency of the State; or | ||||||
4 | (2) subpoena or discovery, or admission into
evidence, | ||||||
5 | in any private civil action or administrative process, | ||||||
6 | unless with respect to any privilege held by the Nationwide | ||||||
7 | Mortgage Licensing System and Registry with respect to the | ||||||
8 | information or material, the person to whom such | ||||||
9 | information or material pertains waives, in whole or in | ||||||
10 | part, in the discretion of that person, that privilege. | ||||||
11 | (d) In order to promote more effective regulation and | ||||||
12 | reduce regulatory burden through supervisory information | ||||||
13 | sharing, any other law relating to the disclosure of | ||||||
14 | confidential supervisory information or any information or | ||||||
15 | material described in subsection (a) of this Section that is | ||||||
16 | inconsistent with subsection (a) of this Section shall be | ||||||
17 | superseded by the requirements of this Section to the extent | ||||||
18 | the other law provides less confidentiality or a weaker | ||||||
19 | privilege.
| ||||||
20 | Section 20-55. Reports of violations. Any person licensed | ||||||
21 | under this Act or any other person may report to the Secretary | ||||||
22 | any information to show that a person subject to this Act is or | ||||||
23 | may be in violation of this Act. A licensee who files a report | ||||||
24 | with the Department that another licensee is engaged in one or | ||||||
25 | more violations pursuant to this Act shall not be the subject |
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| |||||||
1 | of disciplinary action by the Department, unless the Department | ||||||
2 | determines, by a preponderance of the evidence available to the | ||||||
3 | Department, that the reporting person knowingly and willingly | ||||||
4 | participated in the violation that was reported.
| ||||||
5 | Section 20-60. Rules and regulations of the Secretary. | ||||||
6 | (a) In addition to such powers as may be prescribed by this | ||||||
7 | Act, the Secretary is hereby authorized and empowered to adopt | ||||||
8 | rules consistent with the purposes of this Act, including, but | ||||||
9 | not limited to: | ||||||
10 | (1) rules in connection with the
activities of | ||||||
11 | licensees as may be necessary and appropriate for the | ||||||
12 | protection of consumers in this State; | ||||||
13 | (2) rules as may be necessary
and appropriate to define | ||||||
14 | improper or fraudulent business practices in connection | ||||||
15 | with the activities of licensees in servicing student | ||||||
16 | loans; | ||||||
17 | (3) rules that define the
terms used in this Act and as | ||||||
18 | may be necessary and appropriate to interpret and implement | ||||||
19 | the provisions of this Act; and | ||||||
20 | (4) rules as may be necessary
for the enforcement of | ||||||
21 | this Act. | ||||||
22 | (b) The Secretary is hereby authorized and empowered to | ||||||
23 | make specific rulings, demands, and findings that he or she | ||||||
24 | deems necessary for the proper conduct of the student loan | ||||||
25 | servicing industry. |
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1 | (c) A person or entity may make a written application to | ||||||
2 | the Department for a written interpretation of this Act. The | ||||||
3 | Department may then, in its sole discretion, choose to issue a | ||||||
4 | written interpretation. To be valid, a written interpretation | ||||||
5 | must be signed by the Secretary, or his or her designee, and | ||||||
6 | the Department's General Counsel. A written interpretation | ||||||
7 | expires 2 years after the date that it was issued. | ||||||
8 | (d) No provision in this Act that imposes liability or | ||||||
9 | establishes violations shall apply to any act taken by a person | ||||||
10 | or entity in conformity with a written interpretation of this | ||||||
11 | Act that is in effect at the time the act is taken, | ||||||
12 | notwithstanding whether the written interpretation is later | ||||||
13 | amended, rescinded, or determined be judicial or other | ||||||
14 | authority to be invalid for any reason.
| ||||||
15 | Section 20-65. Appeal and review. | ||||||
16 | (a) Any person or entity affected by a decision of the | ||||||
17 | Secretary under any provision of this Act may obtain review of | ||||||
18 | that decision within the Department. | ||||||
19 | (b) The Secretary may, in accordance with the Illinois | ||||||
20 | Administrative Procedure Act, adopt rules to provide for review | ||||||
21 | within the Department of his or her decisions affecting the | ||||||
22 | rights of entities under this Act. The review shall provide | ||||||
23 | for, at a minimum: | ||||||
24 | (1) appointment of a hearing officer other than a | ||||||
25 | regular employee of the Department; |
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| |||||||
1 | (2) appropriate procedural rules, specific deadlines | ||||||
2 | for filings, and standards of evidence and of proof; and | ||||||
3 | (3) provision for apportioning costs among parties to | ||||||
4 | the appeal. | ||||||
5 | (c) All final agency determinations of appeals to decisions | ||||||
6 | of the Secretary may be reviewed in accordance with and under | ||||||
7 | the provisions of the Administrative Review Law. Appeals from | ||||||
8 | all final orders and judgments entered by a court in review of | ||||||
9 | any final administrative decision of the Secretary or of any | ||||||
10 | final agency review of a decision of the Secretary may be taken | ||||||
11 | as in other civil cases.
| ||||||
12 | Section 20-70. Violations of this Act; Secretary's orders. | ||||||
13 | If the Secretary finds, as the result of examination, | ||||||
14 | investigation, or review of reports submitted by a licensee, | ||||||
15 | that the business and affairs of a licensee are not being | ||||||
16 | conducted in accordance with this Act, the Secretary shall | ||||||
17 | notify the licensee of the correction necessary. If a licensee | ||||||
18 | fails to correct such violations, the Secretary shall issue an | ||||||
19 | order requiring immediate correction and compliance with this | ||||||
20 | Act, specifying a reasonable date for performance. | ||||||
21 | The Secretary may adopt rules to provide for an orderly and | ||||||
22 | timely appeal of all orders within the Department. The rules | ||||||
23 | may include provision for assessment of fees and costs.
| ||||||
24 | Section 20-75. Collection of compensation. Unless exempt |
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| |||||||
1 | from licensure under this Act, no person engaged in or offering | ||||||
2 | to engage in any act or service for which a license under this | ||||||
3 | Act is required may bring or maintain any action in any court | ||||||
4 | of this State to collect compensation for the performance of | ||||||
5 | the licensable services without alleging and proving that he or | ||||||
6 | she was the holder of a valid student loan servicing license | ||||||
7 | under this Act at all times during the performance of those | ||||||
8 | services.
| ||||||
9 | Section 20-80. Licensure fees. | ||||||
10 | (a) The fees for licensure shall be a $1,000 application | ||||||
11 | fee and an additional $800 fee for investigation performed in | ||||||
12 | conjunction with Section 15-5. The fees are nonrefundable. | ||||||
13 | (b) The fee for an application renewal shall be $1,000. The | ||||||
14 | fee is nonrefundable.
| ||||||
15 | Section 20-85. Injunction. The Secretary, through the | ||||||
16 | Attorney General, may maintain an action in the name of the | ||||||
17 | people of the State of Illinois and may apply for an injunction | ||||||
18 | in the circuit court to enjoin a person from engaging in | ||||||
19 | unlicensed student loan servicing activity.
| ||||||
20 | ARTICLE 25. CONSUMER FRAUD AND DECEPTIVE BUSINESS | ||||||
21 | PRACTICES ACT | ||||||
22 | Section 25-5. Enforcement; Consumer Fraud and Deceptive |
| |||||||
| |||||||
1 | Business Practices Act. The Attorney General may enforce a | ||||||
2 | violation of Article 5 of this Act as an unlawful practice | ||||||
3 | under the Consumer Fraud and Deceptive Business Practices Act.
| ||||||
4 | ARTICLE 99. SEVERABILITY; EFFECTIVE DATE | ||||||
5 | Section 99-1. Severability. The provisions of this Act are | ||||||
6 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
7 | Section 99-99. Effective date. This Act takes effect | ||||||
8 | December 31, 2018.".
|