SB77
Student loans; licensing of qualified education loan servicers, civil penalties, report.
Summary
As Passed Both Chambers. Qualified education loan servicers.
Prohibits any person from acting as a qualified education loan servicer except in accordance with provisions established by this bill. The bill requires a loan servicer to obtain a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, savings institutions, credit unions, nonprofit institutions ... (More) of higher education, and federally regulated financial institutions are exempt from the licensing provisions. The servicing of a qualified education loan encompasses (i) receiving any scheduled periodic payments from a qualified education loan borrower pursuant to the terms of a qualified education loan; (ii) applying the payments of principal and interest and such other payments, with respect to the amounts received from a qualified education loan borrower, as may be required pursuant to the terms of a qualified education loan; 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, by the SCC beginning March 1, 2021. (Less)-
Bill History
- 11/25/2019 - Senate: Prefiled and ordered printed; offered 01/08/20 20101362D
- 11/25/2019 - Senate: Referred to Committee on Commerce and Labor
- 01/20/2020 - Senate: Rereferred from Commerce and Labor (15-Y 0-N)
- 01/20/2020 - Senate: Rereferred to Finance and Appropriations
- 01/30/2020 - Senate: Reported from Finance and Appropriations with substitute (16-Y 0-N)
- 01/30/2020 - Senate: Committee substitute printed 20107049D-S1
- 02/03/2020 - Senate: Constitutional reading dispensed (40-Y 0-N)
- 02/04/2020 - Senate: Read second time
- 02/04/2020 - Senate: Reading of substitute waived
- 02/04/2020 - Senate: Committee substitute agreed to 20107049D-S1
- 02/04/2020 - Senate: Engrossed by Senate - committee substitute SB77S1
- 02/05/2020 - Senate: Read third time and passed Senate (40-Y 0-N)
- 02/05/2020 - Senate: Impact statement from DPB (SB77S1)
- 02/13/2020 - House: Placed on Calendar
- 02/13/2020 - House: Read first time
- 02/13/2020 - House: Referred to Committee on Labor and Commerce
- 02/18/2020 - House: Reported from Labor and Commerce with substitute (21-Y 0-N)
- 02/18/2020 - House: Committee substitute printed 20108550D-H1
- 02/19/2020 - Senate: Impact statement from DPB (SB77H1)
- 02/20/2020 - House: Read second time
- 02/21/2020 - House: House committee, floor amendments and substitutes offered
- 02/21/2020 - House: Read third time
- 02/21/2020 - House: Committee substitute rejected 20108550D-H1
- 02/21/2020 - House: Amendments by Delegate Simon agreed to
- 02/21/2020 - House: Engrossed by House as amended
- 02/21/2020 - House: Passed House with amendments (85-Y 11-N)
- 02/21/2020 - House: VOTE: Passage (85-Y 11-N)
- 02/25/2020 - Senate: House amendments agreed to by Senate (40-Y 0-N)
- 03/02/2020 - Senate: Enrolled
- 03/02/2020 - Senate: Bill text as passed Senate and House (SB77ER)
- 03/02/2020 - Senate: Impact statement from DPB (SB77ER)
- 03/02/2020 - House: Signed by Speaker
- 03/03/2020 - Senate: Signed by President
- 03/12/2020 - Senate: Enrolled Bill Communicated to Governor on March 12, 2020
- 03/12/2020 - Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
- 04/11/2020 - Senate: Governor's recommendation received by Senate
- 04/22/2020 - Senate: Senate concurred in Governor's recommendation (39-Y 1-N)
- 04/22/2020 - House: House concurred in Governor's recommendation (75-Y 16-N 1-A)
- 04/22/2020 - House: VOTE: (75-Y 16-N 1-A)
- 04/22/2020 - Governor: Governor's recommendation adopted
- 04/22/2020 - Senate: Reenrolled
- 04/22/2020 - Senate: Reenrolled bill text (SB77ER2)
- 04/22/2020 - Senate: Signed by President as reenrolled
- 04/22/2020 - House: Signed by Speaker as reenrolled
- 04/22/2020 - House: Enacted, Chapter 1250 (effective - see bill)
- 04/22/2020 - Governor: Acts of Assembly Chapter text (CHAP1250)
