VA SB77 | 2020 | Regular Session

Status

Spectrum: Partisan Bill (Democrat 2-0)
Status: Introduced on November 25 2019 - 25% progression
Action: 2019-11-25 - Referred to Committee on Commerce and Labor
Pending: Senate Commerce and Labor Committee
Hearing: Jan 20 Senate Committee on Commerce and Labor Hearing
Hearing: Jan 20 in Senate Room 3
Text: Latest bill text (Prefiled) [HTML]

Summary

Qualified education loan servicers. Prohibits any Qualified education loan servicers. Prohibits any person from acting as a qualified education loan servicer except in accordance with provisions established by this bill. The bill requires a loan servicer to obtain a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, savings institutions, credit unions, and nonprofit institutions of higher education are exempt from the licensing provisions. The servicing of a qualified education loan encompasses (i) receiving any scheduled periodic payments from a qualified education loan borrower pursuant to the terms of a qualified education loan; (ii) applying the payments of principal and interest and such other payments, with respect to the amounts received from a qualified education loan borrower, as may be required pursuant to the terms of a qualified education loan; and (iii) performing other administrative services with respect to a qualified education loan. Qualified education loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) knowingly misapplying or recklessly applying loan payments to the outstanding balance of a qualified education loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. Violations are subject to a civil penalty not exceeding $2,500. The bill has a delayed effective date of July 1, 2021, but provides that applications shall be accepted, and investigations commenced,

Tracking Information

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Title

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

Sponsors


History

DateChamberAction
2019-11-25SenateReferred to Committee on Commerce and Labor
2019-11-25SenatePrefiled and ordered printed; offered 01/08/20 20101362D

Code Citations

ChapterArticleSectionCitation TypeStatute Text
192389(n/a)See Bill Text
622600(n/a)See Bill Text
622617(n/a)See Bill Text

Virginia State Sources


Bill Comments

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