Prohibited acts of student loan servicers.

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(1) A student loan servicer shall not:

  1. Directly or indirectly employ a scheme, a device, or artifice to defraud or misleadstudent loan borrowers;

  2. Engage in an unfair or deceptive practice toward any person or misrepresent or omitany material information in connection with the servicing of a student education loan, including misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student education loan, the terms and conditions of the loan agreement, or the student loan borrower's obligations under the loan;

  3. Obtain property by fraud or misrepresentation;

  4. Misapply student education loan payments to the outstanding balance of a studenteducation loan;

  5. Provide inaccurate information to a consumer reporting agency;

  6. Fail to report both the favorable and unfavorable payment history of a student loanborrower to a consumer reporting agency at least annually if the student loan servicer regularly reports information to a consumer reporting agency;

  7. Refuse to communicate with an authorized representative of a student loan borrowerwho provides a written authorization signed by the student loan borrower; except that the student loan servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the student loan borrower;

  8. Make any false statement or omit any material fact in connection with information orreports filed with a governmental agency or in connection with an investigation conducted by the administrator or another governmental agency; or

  9. Except as otherwise provided in federal law, federal student loan agreements, or acontract between the federal government and a student loan servicer, fail to properly evaluate a student loan borrower for an income-based or other student loan repayment program or for eligibility for a public service loan forgiveness program before placing the student loan borrower in forbearance or default, if an income-based repayment or other program is available to the student loan borrower.

Source: L. 2019: Entire article added, (SB 19-002), ch. 157, p. 1867, § 2, effective August 2.


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