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

   1. (1) Employ, directly or indirectly, any scheme, device, or artifice to mislead a student loan borrower;
   2. (2) Engage in any unfair, abusive, or deceptive trade practice toward any person;

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

      1. (i) Any fee owed by a student loan borrower;
      2. (ii) Any payment due by a student loan borrower;
      3. (iii) The appropriateness or availability of a student loan borrower's repayment options;
      4. (iv) The terms and conditions of the student education loan; and
      5. (v) The student loan borrower's obligations under the student education loan;
   4. (4) Obtain property by misrepresentation of fact or omission of material fact;

   5. (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:

      1. (i) Makes a one-time direction for the allocation of future payments;
      2. (ii) Directs an allocation of a payment at the time the payment is made;
      3. (iii) Directs an allocation in response to an inquiry by the student loan servicer; or
      4. (iv) Changes an existing direction for the allocation of future payments;
   6. (6) Knowingly or recklessly misapply, or refuse to correct a misapplication of a payment from a student loan borrower;
   7. (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. (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. (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. (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. (11) Violate any federal law concerning student education loan servicing.
2. (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.

3. (c)

   1. (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. (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. (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:

      1. (i) State that the student loan servicer has corrected the account balance; or
      2. (ii) Explain why the student loan servicer believes that the student loan borrower's account is correct.
4. (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.

Added by Acts 2019, c. 546, § 1, eff. Oct. 1, 2019. Amended by Acts 2021, c. 109, § 1, eff. April 13, 2021.