Bill > AB866

This bill clarifies and strengthens legal protections for student loan borrowers by expanding the applicability of two key consumer protection laws in California. Specifically, the bill specifies that student loan servicers are subject to the Unfair Competition Law (UCL), which allows for civil penalties against businesses engaging in unfair practices. Additionally, the bill explicitly defines student loans as debts covered under the Rosenthal Fair Debt Collection Practices Act, which regulates how debt collectors can interact with borrowers and provides legal remedies for violations. By making these clarifications, the bill aims to provide more robust legal protections for student loan borrowers, allowing them to seek recourse if they experience unfair or deceptive practices by student loan servicers. The bill also includes a provision that ensures local agencies will not be reimbursed for any costs associated with implementing these changes, as the modifications are primarily related to creating or changing legal definitions and potential criminal penalties. This legislation builds upon existing California laws regulating financial services and consumer protections.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB866