Prohibited activities and other responsibilities of student loan servicer.

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    (a)    Except as otherwise required by federal law or a court order, a student loan servicer may not:

        (1)    Employ, directly or indirectly, any scheme, device, or artifice to mislead a student loan borrower;

        (2)    Engage in any unfair, abusive, or deceptive trade practice toward any person;

        (3)    Misrepresent information or omit any material information in connection with the servicing of a student education loan, including:

            (i)    Any fee owed by a student loan borrower;

            (ii)    Any payment due by a student loan borrower;

            (iii)    The appropriateness or availability of a student loan borrower’s repayment options;

            (iv)    The terms and conditions of the student education loan; or

            (v)    The student loan borrower’s obligations under the student education loan;

        (4)    Obtain property by misrepresentation of fact or omission of material fact;

        (5)    On or after February 1, 2020, allocate a nonconforming payment in a manner other than as directed by the student loan borrower if, in writing or electronically, the student loan borrower:

            (i)    Makes a one–time direction for the allocation of future payments;

            (ii)    Directs an allocation of a payment at the time the payment is made;

            (iii)    Directs an allocation in response to an inquiry by the student loan servicer; or

            (iv)    Changes an existing direction for the allocation of future payments;

        (6)    Knowingly or recklessly misapply, or refuse to correct a misapplication of a payment from a student loan borrower;

        (7)    Knowingly or recklessly provide inaccurate information to a consumer reporting agency, or refuse to correct inaccurate information provided to a consumer reporting agency;

        (8)    If a student loan servicer regularly reports information to a consumer reporting agency, fail to report the favorable history of a student loan borrower to a nationally recognized consumer reporting agency at least once a year;

        (9)    Subject to subsection (b) of this section, refuse to communicate with an authorized representative of a student loan borrower who provides a written authorization signed by the student loan borrower;

        (10)    Negligently make a false statement or omit a material fact in connection with any information report filed with, or any investigation conducted by, a state or local government agency; or

        (11)    Violate any federal law concerning student education loan servicing.

    (b)    A student loan servicer may adopt procedures to verify that an authorized representative of a student loan borrower is, in fact, authorized to act on behalf of the student loan borrower.

    (c)    (1)    A student loan servicer shall acknowledge receipt of a written inquiry or complaint from a student loan borrower or the authorized representative of a student loan borrower within 10 days after receiving the inquiry or complaint.

        (2)    Unless a response to the written inquiry is included in the acknowledgment required under paragraph (1) of this subsection, a student loan servicer shall provide information responding to a written inquiry or complaint received under paragraph (1) of this subsection within 30 days after receiving the inquiry or complaint.

        (3)    If a written inquiry or complaint received under paragraph (1) of this subsection relates to a student loan borrower’s account balance, the information provided under paragraph (2) of this subsection shall:

            (i)    State that the student loan servicer has corrected the account balance; or

            (ii)    Explain why the student loan servicer believes that the student loan borrower’s account is correct.

    (d)    If a student loan borrower requests a document concerning the account of the student loan borrower that is in the possession or control of a student loan servicer, the student loan servicer shall provide the document within 30 days after receiving the request.


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