(a) No student loan servicer shall undertake any unlawful action including:

1. (1) employing any scheme, device or artifice to defraud or mislead a borrower;
2. (2) engaging in any unfair, deceptive, abusive, or predatory act or practice;
3. (3) misapplying payments to the outstanding balance of any student loan or to any related interest or fees;
4. (4) making any false statement or make any omission of a material fact in connection with any information or reports filed with a governmental agency or in connection with any investigation conducted by the superintendent or another governmental agency;
5. (5) failing to respond within 15 calendar days to communications from the department, or within such other time as the department may provide in its communication;
6. (6) failing to provide a response pursuant to the requirements of this Part, to a consumer complaint submitted to the student loan servicer by the department or a consumer; or

7. (7) altering any license issued by the department.

   (b) Unfair and abusive acts and practices.

8. (1) As used in this Part the term unfair shall include any act or practice that:

   1. (i) causes or is likely to cause substantial injury to borrowers which is not reasonably avoidable by borrowers; and
   2. (ii) such substantial injury is not outweighed by countervailing benefits to consumers or to competition.

9. (2) As used in this Part the term abusive shall include any act or practice that:

   1. (i) materially interferes with the ability of a borrower to understand a term or condition of a student loan or other service or option thereunder; or

   2. (ii) takes unreasonable advantage of:

      1. (a) a lack of understanding on the part of the borrower of the material risks, costs, or conditions of a student loan or other service or option thereunder;
      2. (b) the inability of the borrower to protect the interests of the borrower in selecting or using a student loan or other service or option thereunder; or
      3. (c) the reasonable reliance by the borrower on a student loan servicer to act in the interests of the borrower.