Bill > S06589

This bill requires the licensure of student loan servicers. The key provisions are: 1. No person shall engage in the business of servicing student loans owed by New York residents without first being licensed by the state Superintendent of Financial Services as a student loan servicer. 2. The application process for a student loan servicer license includes requirements related to financial solvency, character and fitness of the applicant, and other information the Superintendent deems necessary. 3. The Superintendent may revoke or suspend a license for violations of the law, fraud, misrepresentation, or other misconduct by the servicer. 4. The bill imposes various requirements and prohibitions on licensed student loan servicers, such as accurately reporting payment information to consumer reporting agencies, following borrower instructions on payment application, and prohibiting unfair or deceptive practices. 5. The Superintendent is granted authority to examine student loan servicers, promulgate regulations, and impose penalties for violations. The overall goal of the bill is to provide state-level oversight and consumer protections for student loan borrowers in New York by requiring the licensure and regulation of companies that service their student loans.

Business and Industry

https://assembly.state.ny.us/leg/?default_fld=&bn=S06589&term=2017&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y