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SB691,7,13 11(2) Annually, an exempt organization that is involved in the resolution of a
12complaint under this section shall report to the office the number of complaints
13received and the number of complaints resolved by the exempt organization.
SB691,7,17 14224.105 Licensing of student loan servicers. (1) A person, wherever
15located, may not directly or indirectly engage in servicing student education loans
16in this state without first obtaining a license from the office under this section, unless
17the person is exempt from licensure under sub. (2).
SB691,7,19 18(2) The following persons are exempt from the licensing requirement under
19sub. (1):
SB691,7,2020 (a) A state-regulated financial service provider.
SB691,7,2121 (b) The board.
SB691,7,24 22(3) A person seeking to act within this state as a student loan servicer shall
23make a written application to the office for an initial license in the form prescribed
24by the office. The application shall be accompanied by all of the following:
SB691,8,4
1(a) A financial statement prepared by a certified public accountant or a public
2accountant, a general partner if the applicant is a partnership, a corporate officer if
3the applicant is a corporation, or a member duly authorized to execute such
4documents if the applicant is a limited liability company or association.
SB691,8,75 (b) Information regarding the history of criminal convictions of the following,
6which information must be sufficient, as determined by the office, to make the
7findings under sub. (4):
SB691,8,88 1. The applicant.
SB691,8,99 2. Officers, directors, and principal employees of the applicant.
SB691,8,1110 3. Each individual shareholder, member, or partner who directly or indirectly
11controls 10 percent or more of the ownership interests of the applicant.
SB691,8,1212 (c) A nonrefundable license fee of $1,000.
SB691,8,1313 (d) A nonrefundable investigation fee of $800.
SB691,8,20 14(4) Upon the filing of an application for an initial license and the payment of
15the fees for licensing and investigation under sub. (3), the office shall investigate the
16financial condition and responsibility, financial and business experience, character,
17and general fitness of the applicant. The office may conduct criminal history
18background checks of the applicant and of each partner, member, officer, director,
19and principal employee of the applicant. The office may issue a license if the office
20finds all of the following to be true:
SB691,8,2121 (a) The applicant's financial condition is sound.
SB691,8,2422 (b) The applicant's business will be conducted honestly, fairly, equitably,
23carefully, and efficiently within the purposes and intent of this subchapter and in a
24manner commanding the confidence and trust of the community.
SB691,9,3
1(c) No person on behalf of the applicant has knowingly made an incorrect
2statement of a material fact in the application or in any report or statement made
3under this subchapter.
SB691,9,44 (d) The applicant has met any other requirements as determined by the office.
SB691,9,18 5(5) A license issued under this section expires at the close of business on
6September 30 of the odd-numbered year following its issuance, unless renewed or
7earlier surrendered, suspended, or revoked. No later than 15 days after a licensee
8ceases to engage in the business of student education loan servicing in this state for
9any reason, including a business decision to terminate operations in this state,
10license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide
11written notice of surrender to the office and shall surrender to the office its license
12for each location in which the licensee has ceased to engage in such business. The
13written notice of surrender shall identify the location where the records of the
14licensee will be stored and the name, address, and telephone number of an individual
15authorized to provide access to the records. The surrender of a license does not
16reduce or eliminate the licensee's civil or criminal liability arising from acts or
17omissions occurring prior to the surrender of the license, including any
18administrative actions undertaken by the office.
SB691,9,25 19(6) A license issued under this section may be renewed for the ensuing
2024-month period upon the filing of an application containing all required documents
21and fees as provided in this section. A renewal application shall be filed on or before
22September 1 of the year in which the license expires. A renewal application filed with
23the office after September 1 that is accompanied by a $100 late fee is considered to
24be timely and sufficient. If an application for a renewal license has been filed with
25the office on or before the date the license expires, the license continues in effect until

1the issuance by the office of the renewal license applied for or until the office has
2notified the licensee in writing of the office's refusal to issue the renewal license
3together with the grounds on which the refusal is based. The office may refuse to
4issue a renewal license on any ground on which the office may refuse to issue an
5initial license.
SB691,10,9 6(7) An applicant or licensee under this section shall notify the office, in writing,
7of any change in the information provided in the initial application for a license or
8the most recent renewal application for a license, as applicable, not later than 10
9business days after the occurrence of the event that results in the change.
SB691,10,18 10(8) The office may consider an application for a license under this section
11abandoned if the applicant fails to respond to any request for information required
12under this subchapter or any rule promulgated under this subchapter, as long as the
13office notifies the applicant, in writing, that the application will be considered
14abandoned if the applicant fails to submit the information within 60 days after the
15date on which the request for information is made. An application filing fee paid
16prior to the date an application is abandoned under this subsection may not be
17refunded. Abandonment of an application under this subsection does not preclude
18the applicant from submitting a new application for a license under this section.
SB691,10,25 19(9) A licensee may not act within this state as a student loan servicer under any
20name or at any place of business other than that identified in the license. A licensee
21may not change the location of the licensee's place of business without prior written
22notice to the office. Not more than one place of business may be maintained under
23the same license, but the office may issue more than one license to a licensee that
24complies with the provisions of this subchapter as to each license. A license is not
25transferable or assignable.
SB691,11,7
1(10) (a) A student loan servicer shall maintain adequate records of each
2student education loan transaction. Except as otherwise required by federal law, a
3federal student loan education agreement, or a contract between the federal
4government and the student loan servicer, a student loan servicer shall maintain
5these records for not less than 2 years following the final payment on the student
6education loan or the assignment of the student education loan, whichever occurs
7first.
SB691,11,138 (b) Upon request by the office, a student loan servicer shall make the records
9under par. (a) available or shall send these records to the office by registered or
10certified mail, return receipt requested, or by any express delivery carrier that
11provides a dated delivery receipt, not later than 5 business days after requested by
12the office to do so. The office may grant a licensee additional time to make these
13records available or to send the records to the office.
SB691,11,15 14(11) (a) The office may suspend, revoke, or refuse to renew a license issued
15under this section if the office finds any of the following:
SB691,11,1716 1. That the licensee has violated any provision of this subchapter, any rule
17promulgated thereunder, or any lawful order of the office made thereunder.
SB691,11,2018 2. That any fact or condition exists that, if it had existed at the time of the
19original application for the license, clearly would have warranted a denial of the
20license.
SB691,11,2221 3. That the licensee made a material misstatement in an application for a
22license or in information furnished to the office.
SB691,11,2323 4. That the licensee has failed to pay any fee required under this section.
SB691,12,924 (b) The office shall suspend a license issued under this section if the office finds
25that the licensee is an individual who fails to comply, after appropriate notice, with

1a subpoena or warrant issued by the department of workforce development or a
2county child support agency under s. 59.53 (5) and related to paternity or child
3support proceedings or who is delinquent in making court-ordered payments of child
4or family support, maintenance, birth expenses, medical expenses, or other expenses
5related to the support of a child or former spouse, as provided in a memorandum of
6understanding entered into under s. 49.857. A licensee whose license is suspended
7under this paragraph is entitled to a notice and hearing only as provided in a
8memorandum of understanding entered into under s. 49.857 and is not entitled to
9any other notice or hearing under this section.
SB691,12,1410 (c) The office shall revoke a license issued under this section if the department
11of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes.
12A licensee whose license is revoked under this paragraph for delinquent taxes is
13entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5)
14(a) but is not entitled to any other notice or hearing under this section.
SB691,12,2015 (d) The office shall revoke a license issued under this section if the department
16of workforce development certifies under s. 108.227 that the licensee is liable for
17delinquent unemployment insurance contributions. A licensee whose license is
18revoked under this paragraph for delinquent unemployment insurance
19contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and a hearing under
20s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section.
SB691,12,2521 (e) A person whose license has been suspended, revoked, or refused renewal
22under this subsection may request a hearing under s. 227.44 within 30 days after the
23date of suspension, revocation, or refusal. The office may appoint a hearing examiner
24under s. 227.46 to conduct the hearing. This paragraph does not apply to a
25suspension or revocation under pars. (b) to (d).
SB691,13,3
1(f) An abatement of the license fee may not be made if the license is suspended
2or revoked under this subsection or surrendered in connection with a suspension or
3revocation proceeding.
SB691,13,5 4(12) All fees received by the office under this section shall be credited to the
5appropriation account under s. 20.144 (1) (g).
SB691,13,8 6224.106 Student loan servicers. (1) In this section, “nonconforming
7payment" means a payment on a student education loan that is different from the
8required payment.
SB691,13,12 9(2) (a) Except as otherwise provided in federal law, a federal student education
10loan agreement, or a contract between the federal government and a student loan
11servicer, a student loan servicer shall comply with the requirements of this
12subsection.
SB691,13,1513 (b) A student loan servicer shall respond to a written inquiry from a student
14loan borrower or the representative of a student loan borrower within 30 days after
15receiving the inquiry.
SB691,13,1716 (c) Upon receipt of a nonconforming payment on a student education loan, a
17student loan servicer shall do all of the following:
SB691,13,1918 1. Ask the student loan borrower how the student loan borrower prefers the
19student loan servicer to apply the nonconforming payment.
SB691,13,2120 2. Note how the student loan borrower prefers the student loan servicer to
21apply the nonconforming payment.
SB691,13,2322 3. Apply the nonconforming payment in the manner preferred by the student
23loan borrower.
SB691,14,3
14. Until the student loan borrower indicates otherwise, apply any future
2nonconforming payments in the same manner preferred by the student loan
3borrower as noted under subd. 2.
SB691,14,74 (d) If there is a sale, assignment, or other transfer of the servicing of a student
5education loan that results in a change in the identity of the person to whom a
6student loan borrower is required to send payments or direct any communication
7concerning the student education loan, all of the following apply:
SB691,14,128 1. As a condition of the sale, assignment, or transfer, the student loan servicer
9shall require the new student loan servicer to honor all benefits originally
10represented as available to the student loan borrower during the repayment of the
11student education loan and preserve the availability of these benefits, including any
12benefits for which the student loan borrower has not yet qualified.
SB691,14,1713 2. Within 45 days after the sale, assignment, or transfer, the student loan
14servicer shall transfer to the new student loan servicer all information regarding the
15student loan borrower, the account of the student loan borrower, and the student
16education loan of the student loan borrower, including the repayment status of the
17student loan borrower and any benefits associated with the student education loan.
SB691,14,2018 3. The sale, assignment, or transfer of the servicing of the student education
19loan shall be completed at least 7 days before the next payment on the student
20education loan is due.
SB691,15,221 (e) A student loan servicer that obtains the right to service a student education
22loan shall adopt policies and procedures to verify that the student loan servicer has
23received all information regarding the student loan borrower, the account of the
24student loan borrower, and the student education loan of the student loan borrower,

1including the repayment status of the student loan borrower and any benefits
2associated with the student education loan.
SB691,15,3 3(3) A student loan servicer may not do any of the following:
SB691,15,54 (a) Directly or indirectly employ a scheme, device, or artifice to defraud or
5mislead any student loan borrower.
SB691,15,116 (b) Engage in an unfair or deceptive practice toward any person or
7misrepresent or omit any material information in connection with the servicing of
8a student education loan, including misrepresenting the amount, nature, or terms
9of any fee or payment due or claimed to be due on a student education loan, the terms
10and conditions of the loan agreement, or the student loan borrower's obligations
11under the loan.
SB691,15,1212 (c) Obtain property by fraud or misrepresentation.
SB691,15,1413 (d) Misapply student education loan payments to the outstanding balance of
14a student education loan.
SB691,15,1615 (e) Provide inaccurate information to a credit bureau, thereby harming the
16determination of a student loan borrower's creditworthiness.
SB691,15,2017 (f) Fail to report both the favorable and unfavorable payment history of a
18student loan borrower to a nationally recognized consumer credit bureau at least
19annually if the student loan servicer regularly reports information to such a credit
20bureau.
SB691,15,2521 (g) Refuse to communicate with an authorized representative of a student loan
22borrower who provides a written authorization signed by the student loan borrower,
23except that the student loan servicer may adopt procedures reasonably related to
24verifying that the representative is in fact authorized to act on behalf of the student
25loan borrower.
SB691,16,3
1(h) Make any false statement or omit a material fact in connection with
2information or reports filed with a governmental agency or in connection with an
3investigation conducted by the office or another governmental agency.
SB691,16,64 (i) Fail to evaluate a student loan borrower for an income-based repayment
5program prior to placing the student loan borrower in forbearance or default, if an
6income-based repayment program is available to the student loan borrower.
SB691,16,97 (j) Violate any applicable federal law or regulation relating to student
8education loan servicing, including the federal Truth in Lending Act, 15 USC 1601
9to 1667f, and regulations adopted under that act.
SB691,16,12 10(4) (a) A student loan borrower injured by violation of this section may bring
11an action in any court of competent jurisdiction and recover the damages, fees, and
12penalties set forth in par. (b).
SB691,16,1513 (b) A student loan servicer that fails to comply with any requirement imposed
14under this section with respect to a student loan borrower is liable in an amount
15equal to the sum of all of the following:
SB691,16,1716 1. Any actual damages sustained by the student loan borrower as result of the
17violation.
SB691,16,2018 2. If the student loan borrower establishes by a preponderance of the evidence
19that the violation was willful or intentional, a monetary award equal to 2 times the
20amount of actual damages.
SB691,16,2321 3. In the case of any successful action by the student loan borrower to enforce
22the liability set out in this paragraph, the costs of the action, together with
23reasonable attorney fees, as determined by the court.
SB691,17,3
1(c) For purposes of par. (b), actual damages includes damages caused by
2emotional distress or mental anguish with or without accompanying physical injury
3proximately caused by a violation of this section.
SB691,17,54 (d) The remedies provided in this subsection do not preclude the availability
5of other remedies that may be available to a student loan borrower.
SB691,17,7 6224.107 Office powers and duties. (1) The office may conduct
7investigations and examinations as follows:
SB691,17,128 (a) For purposes of initial licensing, renewal, suspension, or revocation or of
9investigation to determine compliance with this subchapter, the office may access,
10receive, and use any books, accounts, records, files, documents, information, or
11evidence belonging to a licensee or person under examination, including any of the
12following:
SB691,17,1313 1. Criminal, civil, and administrative history information.
SB691,17,1514 2. Personal history and experience information, including independent credit
15reports obtained from a consumer reporting agency, as defined in 15 USC 1681a.
SB691,17,1816 3. Any other documents, information, or evidence the office considers relevant
17to the inquiry or investigation regardless of the location, possession, control, or
18custody of the documents, information, or evidence.
SB691,18,219 (b) For the purposes of investigating violations or complaints arising under this
20subchapter or of examination, the office may review, investigate, or examine any
21licensee or person subject to this subchapter as often as necessary in order to carry
22out the purposes of this subchapter. The office may direct, subpoena, or order the
23attendance of and examine under oath any person whose testimony may be required
24about the student education loan or the business or subject matter of the
25examination or investigation and may direct, subpoena, or order the person to

1produce books, accounts, records, files, and any other documents the office considers
2relevant to the inquiry.
SB691,18,143 (c) In making an examination or investigation authorized by this section, the
4office may control access to any documents and records of the licensee or person
5under examination or investigation. The office may take possession of the
6documents and records or place a person in exclusive charge of the documents and
7records in the place where they are usually kept. During the period of control, a
8person may not remove or attempt to remove any of the documents and records
9except pursuant to a court order or with the consent of the office. Unless the office
10has reasonable grounds to believe the documents or records of the licensee or person
11have been, or are at risk of being, altered or destroyed for purposes of concealing a
12violation of this subchapter, the licensee or owner of the documents and records may
13have access to the documents or records as necessary to conduct its ordinary business
14affairs.
SB691,18,1615 (d) In order to carry out the purposes of this section, the office may do any of
16the following:
SB691,18,1917 1. Retain attorneys, accountants, or other professionals and specialists as
18examiners, auditors, or investigators to conduct or assist in the conduct of
19examinations or investigations.
SB691,18,2320 2. Enter into agreements or relationships with other government officials or
21regulatory associations in order to improve efficiencies and reduce regulatory
22burden by sharing resources, standardized or uniform methods or procedures, and
23documents, records, information, or evidence obtained under this section.
SB691,19,3
13. Use, hire, contract for, or employ public or privately available analytical
2systems, methods, or software to examine or investigate the licensee or person
3subject to this subchapter.
SB691,19,54 4. Accept and rely on examination or investigation reports made by other
5government officials, within or outside this state.
SB691,19,106 5. Accept audit reports made by an independent certified public accountant for
7the licensee or person subject to this subchapter in the course of that part of the
8examination covering the same general subject matter as the audit and may
9incorporate the audit report in a report of examination, report of investigation, or
10other writing of the office.
SB691,19,1411 (e) A licensee or person subject to investigation or examination under this
12section may not knowingly withhold, abstract, remove, mutilate, or destroy any
13books, physical records, computer records, or other information relating to
14information regulated under this subchapter.
SB691,19,1715 (f) The costs of an investigation conducted by the office shall be paid by the
16licensee or person being investigated. Funds received by the office under this
17paragraph shall be credited to the appropriation account under s. 20.144 (1) (g).
SB691,19,20 18(2) The office may do any of the following to address a violation of this
19subchapter, any rule promulgated under this subchapter, or any order issued under
20this subchapter:
SB691,20,221 (a) Issue an order requiring a student loan servicer to cease and desist from a
22violation, to correct the conditions resulting from the violation, and to take actions
23to prevent such violations in the future. As part of the order, the office may require
24the student loan servicer to reimburse persons injured by the violation. A student

1loan servicer that violates an order issued under this paragraph shall, for each
2violation, forfeit not more than $1,000 per day for each day the violation continues.
SB691,20,73 (b) Commence administrative proceedings on its own initiative, or commence
4civil actions through the department of justice, to restrain by temporary or
5permanent injunction a person from violating this subchapter, to recover any fees or
6penalties owed under this subchapter, or to seek relief available under this
7subchapter on behalf of student loan borrowers.
SB691,20,98 (c) Suspend, revoke, or refuse to renew a license issued under s. 224.105 as
9provided in s. 224.105 (11).
SB691,20,10 10(3) The office may promulgate rules to implement this subchapter.
SB691,5 11Section 5 . Nonstatutory provisions.
SB691,20,1612 (1) (a) No later than the 90th day after the effective date of this paragraph, the
13department of financial institutions shall determine whether it can fully implement
14the provisions created in this act as subch. V of ch. 224 by the 90th day after the
15effective date of this paragraph, and shall provide notice of this determination to the
16legislative reference bureau by that date.
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