AB711,7,10 224.104 Assistance by exempt organizations; report. (1) An exempt organization that is requested by the office to provide assistance under s. 224.102 (9) shall provide, in a timely manner, the information requested by the office necessary to investigate and resolve a student loan borrower complaint, including the steps taken by the exempt organization to resolve the complaint, or, on its own, shall resolve, in a timely manner, the complaint and provide the office with documentation regarding the resolution.

AB711,7,13 (2) Annually, an exempt organization that is involved in the resolution of a complaint under this section shall report to the office the number of complaints received and the number of complaints resolved by the exempt organization.

AB711,7,17 224.105 Licensing of student loan servicers. (1) A person, wherever located, may not directly or indirectly engage in servicing student education loans in this state without first obtaining a license from the office under this section, unless the person is exempt from licensure under sub. (2).

AB711,7,19 (2) The following persons are exempt from the licensing requirement under sub. (1):

AB711,7,20 (a) A state-regulated financial service provider.

AB711,7,21 (b) The board.

AB711,7,24 (3) A person seeking to act within this state as a student loan servicer shall make a written application to the office for an initial license in the form prescribed by the office. The application shall be accompanied by all of the following:

AB711,8,4 (a) A financial statement prepared by a certified public accountant or a public accountant, a general partner if the applicant is a partnership, a corporate officer if the applicant is a corporation, or a member duly authorized to execute such documents if the applicant is a limited liability company or association.

AB711,8,7 (b) Information regarding the history of criminal convictions of the following, which information must be sufficient, as determined by the office, to make the findings under sub. (4):

AB711,8,8 1. The applicant.

AB711,8,9 2. Officers, directors, and principal employees of the applicant.

AB711,8,11 3. Each individual shareholder, member, or partner who directly or indirectly controls 10 percent or more of the ownership interests of the applicant.

AB711,8,12 (c) A nonrefundable license fee of $1,000.

AB711,8,13 (d) A nonrefundable investigation fee of $800.

AB711,8,20 (4) Upon the filing of an application for an initial license and the payment of the fees for licensing and investigation under sub. (3), the office shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The office may conduct criminal history background checks of the applicant and of each partner, member, officer, director, and principal employee of the applicant. The office may issue a license if the office finds all of the following to be true:

AB711,8,21 (a) The applicant's financial condition is sound.

AB711,8,24 (b) The applicant's business will be conducted honestly, fairly, equitably, carefully, and efficiently within the purposes and intent of this subchapter and in a manner commanding the confidence and trust of the community.

AB711,9,3 (c) No person on behalf of the applicant has knowingly made an incorrect statement of a material fact in the application or in any report or statement made under this subchapter.

AB711,9,4 (d) The applicant has met any other requirements as determined by the office.

AB711,9,18 (5) A license issued under this section expires at the close of business on September 30 of the odd-numbered year following its issuance, unless renewed or earlier surrendered, suspended, or revoked. No later than 15 days after a licensee ceases to engage in the business of student education loan servicing in this state for any reason, including a business decision to terminate operations in this state, license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide written notice of surrender to the office and shall surrender to the office its license for each location in which the licensee has ceased to engage in such business. The written notice of surrender shall identify the location where the records of the licensee will be stored and the name, address, and telephone number of an individual authorized to provide access to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring prior to the surrender of the license, including any administrative actions undertaken by the office.

AB711,9,25 (6) A license issued under this section may be renewed for the ensuing 24-month period upon the filing of an application containing all required documents and fees as provided in this section. A renewal application shall be filed on or before September 1 of the year in which the license expires. A renewal application filed with the office after September 1 that is accompanied by a $100 late fee is considered to be timely and sufficient. If an application for a renewal license has been filed with the office on or before the date the license expires, the license continues in effect until the issuance by the office of the renewal license applied for or until the office has notified the licensee in writing of the office's refusal to issue the renewal license together with the grounds on which the refusal is based. The office may refuse to issue a renewal license on any ground on which the office may refuse to issue an initial license.

AB711,10,9 (7) An applicant or licensee under this section shall notify the office, in writing, of any change in the information provided in the initial application for a license or the most recent renewal application for a license, as applicable, not later than 10 business days after the occurrence of the event that results in the change.

AB711,10,18 (8) The office may consider an application for a license under this section abandoned if the applicant fails to respond to any request for information required under this subchapter or any rule promulgated under this subchapter, as long as the office notifies the applicant, in writing, that the application will be considered abandoned if the applicant fails to submit the information within 60 days after the date on which the request for information is made. An application filing fee paid prior to the date an application is abandoned under this subsection may not be refunded. Abandonment of an application under this subsection does not preclude the applicant from submitting a new application for a license under this section.

AB711,10,25 (9) A licensee may not act within this state as a student loan servicer under any name or at any place of business other than that identified in the license. A licensee may not change the location of the licensee's place of business without prior written notice to the office. Not more than one place of business may be maintained under the same license, but the office may issue more than one license to a licensee that complies with the provisions of this subchapter as to each license. A license is not transferable or assignable.

AB711,11,7 (10) (a) A student loan servicer shall maintain adequate records of each student education loan transaction. Except as otherwise required by federal law, a federal student loan education agreement, or a contract between the federal government and the student loan servicer, a student loan servicer shall maintain these records for not less than 2 years following the final payment on the student education loan or the assignment of the student education loan, whichever occurs first.

AB711,11,13 (b) Upon request by the office, a student loan servicer shall make the records under par. (a) available or shall send these records to the office by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, not later than 5 business days after requested by the office to do so. The office may grant a licensee additional time to make these records available or to send the records to the office.

AB711,11,15 (11) (a) The office may suspend, revoke, or refuse to renew a license issued under this section if the office finds any of the following:

AB711,11,17 1. That the licensee has violated any provision of this subchapter, any rule promulgated thereunder, or any lawful order of the office made thereunder.

AB711,11,20 2. That any fact or condition exists that, if it had existed at the time of the original application for the license, clearly would have warranted a denial of the license.