HB 10

  • Virginia House Bill
  • 2020 Regular Session
  • Introduced in House Nov 18, 2019
  • Passed House Jan 27, 2020
  • Passed Senate Feb 26, 2020
  • Became Law Apr 22, 2020

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

Abstract

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 of higher education, and farm credit systems 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 or notification of such payments; (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; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. 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) misapplying 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 and are prohibited practices under the Virginia Consumer Protection Act. 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. This bill is identical to SB 77.

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 of higher education, and farm credit systems 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 or notification of such payments; (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; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. 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 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 and are prohibited practices under the Virginia Consumer Protection Act. 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.

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 of higher education, and farm credit systems 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 or notification of such payments; (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; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. 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) misapplying 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 and are prohibited practices under the Virginia Consumer Protection Act. 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. This bill is identical to SB 77.

Qualified education loan servicers. Prohibits anyperson from acting as a qualified education loan servicer except in accordancewith provisions established by this bill. The bill requires a loan servicer to obtaina license from the State Corporation Commission (SCC) and establishesprocedures pertaining to such licenses. Banks, savings institutions, creditunions, and nonprofit institutions of higher education are exempt from thelicensing provisions. The servicing of a qualified education loan encompasses(i) receiving any scheduled periodic payments from a qualified education loanborrower pursuant to the terms of a qualified education loan; (ii) applying thepayments of principal and interest and such other payments, with respect to theamounts received from a qualified education loan borrower, as may be requiredpursuant to the terms of a qualified education loan; and (iii) performing otheradministrative services with respect to a qualified education loan. Qualifiededucation loan servicers are prohibited from, among other things, (a)misrepresenting the amount, nature, or terms of any fee or payment due orclaimed to be due on a qualified education loan, the terms and conditions ofthe loan agreement, or the borrower's obligations under the loan; (b) knowinglymisapplying or recklessly applying loan payments to the outstanding balance ofa qualified education loan; and (c) failing to report both the favorable andunfavorable payment history of the borrower to a nationally recognized consumercredit bureau at least annually if the loan servicer regularly reportsinformation to such a credit bureau. Violations are subject to a civil penaltynot 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.

Bill Sponsors (6)

Votes


Actions


Apr 22, 2020

House

Placed on Calendar

House

Enacted, Chapter 1198 (effective - see bill)

Senate

Signed by President as reenrolled

House

Signed by Speaker as reenrolled

House

Reenrolled bill text (HB10ER2)

House

Reenrolled

Office of the Governor

Governor's recommendation adopted

Senate

Senate concurred in Governor's recommendation (40-Y 0-N)

Senate

Reconsideration of Governor's recommendation agreed to (38-Y 1-N)

Senate

Senate concurred in Governor's recommendation (40-Y 0-N)

House

VOTE: (75-Y 18-N)

House

House concurred in Governor's recommendation (75-Y 18-N)

Apr 11, 2020

House

Governor's recommendation received by House

Mar 12, 2020

House

Enrolled Bill communicated to Governor on March 12, 2020

Office of the Governor

Governor's Action Deadline 11:59 p.m., April 11, 2020

Mar 03, 2020

Senate

Signed by President

Mar 02, 2020

House

Impact statement from DPB (HB10ER)

House

Signed by Speaker

House

Enrolled

Feb 26, 2020

Senate

Committee substitute agreed to 20108860D-S1

House

VOTE: Adoption (79-Y 14-N)

Senate

Constitutional reading dispensed (38-Y 0-N)

Senate

Read third time

Senate

Reading of substitute waived

Senate

Engrossed by Senate - committee substitute HB10S1

Senate

Passed Senate with substitute (39-Y 1-N)

House

Impact statement from DPB (HB10S1)

House

Senate substitute agreed to by House 20108860D-S1 (79-Y 14-N)

Feb 25, 2020

Senate

Reported from Finance and Appropriations with substitute (15-Y 0-N)

Senate

Committee substitute printed 20108860D-S1

Feb 17, 2020

Senate

Rereferred to Finance and Appropriations

Senate

Rereferred from Commerce and Labor (15-Y 0-N)

Feb 05, 2020

House

Impact statement from DPB (HB10EH1)

Jan 28, 2020

Senate

Referred to Committee on Commerce and Labor

Senate

Constitutional reading dispensed

Jan 27, 2020

House

VOTE: Passage (84-Y 15-N)

House

Read third time and passed House (84-Y 15-N)

Jan 24, 2020

House

Read second time

House

Printed as engrossed 20104524D-EH1

House

Engrossed by House - committee substitute with amendments HB10EH1

House

Amendments by Delegate Simon agreed to

House

Committee substitute agreed to 20104524D-H1

Jan 23, 2020

House

Read first time

Jan 21, 2020

House

House committee, floor amendments and substitutes offered

House

Committee substitute printed 20104524D-H1

House

Reported from Labor and Commerce with substitute (17-Y 3-N)

Nov 18, 2019

House

Prefiled and ordered printed; offered 01/08/20 20100770D

House

Referred to Committee on Labor and Commerce

Bill Text

Bill Text Versions Format
HB10H1 HTML
Engrossed by House - committee substitute with amendments HB10EH1 HTML
Engrossed by Senate - committee substitute HB10S1 HTML
Bill text as passed House and Senate (HB10ER) HTML
Reenrolled bill text (HB10ER2) HTML
Acts of Assembly Chapter text (CHAP1198) HTML

Related Documents

Document Format
Amendment: HB10AH HTML
Amendment: HB10AG HTML

Sources

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