AB 424

  • California Assembly Bill
  • 2021-2022 Regular Session
  • Introduced in Assembly
  • Passed Assembly May 27, 2021
  • Passed Senate Sep 01, 2021
  • Became Law Oct 06, 2021

Private Student Loan Collections Reform Act: collection actions.

Abstract

Existing law, the Student Loan Servicing Act, provides for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Financial Protection and Innovation, who is the head of the Department of Financial Protection and Innovation. The act prohibits a person from engaging in the business of servicing a student loan in this state without a license, unless the person falls within certain exceptions. Existing law, the Student Borrower Bill of Rights, imposes requirements on a student loan servicer, including, among others, the timely posting, processing, and crediting of student loan payments, and applying overpayments consistent with the best financial interest of a student loan borrower. Existing law also prohibits a student loan servicer from engaging in unfair or deceptive practices, or abusive acts or practices in connection with the servicing of a student loan, and authorizes a person to bring an action for actual damages, injunctive relief, restitution, punitive damages, attorney's fees, and other relief, including treble damages in certain circumstances. This bill would enact the Private Student Loan Collections Reform Act, which would become operative July 1, 2022. The act would prohibit a private education lender or a private education loan collector, as defined, from making any written statement to a debtor in an attempt to collect a private education loan unless the private education lender or private education loan collector possesses certain information regarding the loan and provides this information to the debtor, as specified. The act would require all settlement agreements between a private education lender or private education loan collector and a debtor to be documented in open court or otherwise reduced to writing, as specified. The act would also require a private education lender or private education loan collector that accepts a payment as payment in full or as a full and final compromise of a private education loan, within 30 calendar days, to provide specified information to the debtor regarding the loan. The act would also prohibit a private education lender or private education loan collector from bringing suit or initiating an arbitration or other legal proceeding to collect a private education loan if the applicable statute of limitations on the claim has expired. The act would require a complaint, with respect to an action brought by a private education lender or private education loan collector to collect a private education loan, to contain specified information and would prohibit a default or other judgment from being entered against a defendant unless documents submitted to the court establish the facts alleged. The act would require a plaintiff seeking an exemption, as an exempt entity, from those requirements to attach to the complaint a declaration or affidavit, signed under penalty of perjury, stating certain information. By expanding the scope of the crime of perjury, the bill would create a state-mandated local program. The act would also authorize a person to bring a cause of action against a creditor, private education lender, or private education loan collector for violating the act for actual damages, statutory damages, restitution, and other specified relief. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Sponsors (14)

Votes


Actions


Oct 06, 2021

California State Legislature

Chaptered by Secretary of State - Chapter 559, Statutes of 2021.

California State Legislature

Approved by the Governor.

Sep 10, 2021

California State Legislature

Enrolled and presented to the Governor at 4 p.m.

Sep 02, 2021

Assembly

Assembly Rule 77 suspended. (Ayes 43. Noes 12.)

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 18.).

Sep 01, 2021

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 8.).

Assembly

In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 3 pursuant to Assembly Rule 77.

Aug 30, 2021

Senate

Read second time. Ordered to third reading.

Aug 26, 2021

Senate

From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 26).

Senate

Read second time and amended. Ordered returned to second reading.

Aug 16, 2021

Senate

In committee: Referred to suspense file.

  • Referral-Committee
suspense file.

Jul 08, 2021

Senate

Read second time and amended. Re-referred to Com. on APPR.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Jul 07, 2021

Senate

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (July 6).

Jun 25, 2021

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  • Amendment-Introduction
  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on JUD.

Jun 23, 2021

Senate

From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 2.) (June 23). Re-referred to Com. on JUD.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on JUD.

Jun 14, 2021

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

  • Amendment-Introduction
  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on B. & F.I.

Jun 09, 2021

Senate

Referred to Coms. on B. & F.I., JUD. and APPR.

  • Referral-Committee
Coms. on B. & F.I., JUD. and APPR.

May 28, 2021

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

May 27, 2021

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 20.)

May 24, 2021

Assembly

Read second time. Ordered to third reading.

May 20, 2021

Assembly

From committee: Do pass. (Ayes 12. Noes 4.) (May 20).

May 05, 2021

Assembly

In committee: Set, first hearing. Referred to APPR. suspense file.

  • Referral-Committee
APPR. suspense file. APPR

Apr 22, 2021

Assembly

Re-referred to Com. on APPR.

  • Referral-Committee
Com. on APPR.

Apr 21, 2021

Assembly

Read second time and amended.

Apr 20, 2021

Assembly

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (April 20).

Apr 19, 2021

Assembly

From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 3.) (April 15). Re-referred to Com. on JUD.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on JUD.

Apr 08, 2021

Assembly

Assembly Rule 56 suspended. (Page 924.)

Assembly

(pending re-refer to Com. on JUD.)

Feb 12, 2021

Assembly

Referred to Coms. on B. & F. and JUD.

  • Referral-Committee
Coms. on B. & F. and JUD.

Feb 05, 2021

Assembly

From printer. May be heard in committee March 7.

Feb 04, 2021

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB424 HTML
02/04/21 - Introduced PDF
04/21/21 - Amended Assembly PDF
06/14/21 - Amended Senate PDF
06/25/21 - Amended Senate PDF
07/08/21 - Amended Senate PDF
08/26/21 - Amended Senate PDF
09/07/21 - Enrolled PDF
10/06/21 - Chaptered PDF

Related Documents

Document Format
04/14/21- Assembly Banking and Finance PDF
04/17/21- Assembly Judiciary PDF
05/03/21- Assembly Appropriations PDF
05/24/21- ASSEMBLY FLOOR ANALYSIS PDF
06/20/21- Senate Banking and Financial Institutions PDF
07/02/21- Senate Judiciary PDF
08/13/21- Senate Appropriations PDF
08/26/21- Senate Appropriations PDF
08/31/21- Sen. Floor Analyses PDF
09/01/21- ASSEMBLY FLOOR ANALYSIS PDF

Sources

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