Virginia House Bill 1915 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 14-0)
Status: Introduced on January 10 2017 - 25% progression, died in committee
Action: 2017-02-08 - Left in Commerce and Labor
Pending: House Commerce and Labor Committee
Text: Latest bill text (Prefiled) [HTML]

Student loan servicers; student loan ombudsman. Prohibits Student loan servicers; student loan ombudsman. Prohibits any person from acting as a student loan servicer without first obtaining a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks and credit unions are exempt from the licensing provisions. The servicing of a student loan encompasses (i) receiving any scheduled periodic payments from a student loan borrower pursuant to the terms of a student education loan; (ii) applying the payments of principal and interest and such other payments with respect to the amounts received from a student loan borrower, as may be required pursuant to the terms of a student education loan; and (iii) performing other administrative services with respect to a student education loan. Student loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) knowingly misapplying or recklessly applying student loan payments to the outstanding balance of a student loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. The measure also establishes the Office of the Student Loan Ombudsman within the SCC's Bureau of Financial Institutions. The Office of the Student Loan Ombudsman is required to provide timely assistance to any student loan borrower of any student education loan in the Commonwealth. The Office of the Student Loan Ombudsman is further required to establish and maintain a student loan borrower education course, which shall cover key loan terms, documentation requirements, monthly payment obligations, income-based repayment options, loan forgiveness, and disclosure requirements. Violations are subject to a civil penalty not exceeding $2,500. The bill has a

Student loan servicers; student loan ombudsman.

Del. Marcus Simon [D]	Sen. Lamont Bagby [D]	Sen. John Bell [D]	Sen. Jennifer Boysko [D]
Del. Patrick Hope [D]	Del. Kaye Kory [D]	Del. Paul Krizek [D]	Del. Mark Levine [D]
Del. Kathleen Murphy [D]	Del. Kenneth Plum [D]	Del. Marcia Price [D]	Del. Luke Torian [D]
Del. Roslyn Tyler [D]	Del. Vivian Watts [D]

Date	Chamber	Action
2017-02-08	House	Left in Commerce and Labor
2017-01-26	House	Subcommittee recommends laying on the table by voice vote
2017-01-17	House	Assigned C & L sub: Special Sub-Consumer Lending
2017-01-10	House	Referred to Committee on Commerce and Labor
2017-01-10	House	Prefiled and ordered printed; offered 01/11/17 17101766D

Chapter	Article	Section	Citation Type	Statute Text
6	2	2600	(n/a)	See Bill Text
6	2	2619	(n/a)	See Bill Text

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?171+sum+HB1915
Text	https://lis.virginia.gov/cgi-bin/legp604.exe?171+ful+HB1915+hil