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3. Apply the nonconforming payment in the manner preferred by the student
11loan borrower.
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4. Until the student loan borrower indicates otherwise, apply any future
13nonconforming payments in the same manner preferred by the student loan
14borrower as noted under subd. 2.
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(d) If there is a sale, assignment, or other transfer of the servicing of a student
16education loan that results in a change in the identity of the person to whom a
17student loan borrower is required to send payments or direct any communication
18concerning the student education loan, all of the following apply:
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1. As a condition of the sale, assignment, or transfer, the student loan servicer
20shall require the new student loan servicer to honor all benefits originally
21represented as available to the student loan borrower during the repayment of the
22student education loan and preserve the availability of these benefits, including any
23benefits for which the student loan borrower has not yet qualified.
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2. Within 45 days after the sale, assignment, or transfer, the student loan
25servicer shall transfer to the new student loan servicer all information regarding the
1student loan borrower, the account of the student loan borrower, and the student
2education loan of the student loan borrower, including the repayment status of the
3student loan borrower and any benefits associated with the student education loan.
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3. The sale, assignment, or transfer of the servicing of the student education
5loan shall be completed at least 7 days before the next payment on the student
6education loan is due.
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(e) A student loan servicer that obtains the right to service a student education
8loan shall adopt policies and procedures to verify that the student loan servicer has
9received all information regarding the student loan borrower, the account of the
10student loan borrower, and the student education loan of the student loan borrower,
11including the repayment status of the student loan borrower and any benefits
12associated with the student education loan.
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13(3) A student loan servicer may not do any of the following:
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(a) Directly or indirectly employ a scheme, device, or artifice to defraud or
15mislead any student loan borrower.
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(b) Engage in an unfair or deceptive practice toward any person or
17misrepresent or omit any material information in connection with the servicing of
18a student education loan, including misrepresenting the amount, nature, or terms
19of any fee or payment due or claimed to be due on a student education loan, the terms
20and conditions of the loan agreement, or the student loan borrower's obligations
21under the loan.
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(c) Obtain property by fraud or misrepresentation.
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(d) Misapply student education loan payments to the outstanding balance of
24a student education loan.
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1(e) Provide inaccurate information to a credit bureau, thereby harming the
2determination of a student loan borrower's creditworthiness.
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(f) Fail to report both the favorable and unfavorable payment history of a
4student loan borrower to a nationally recognized consumer credit bureau at least
5annually if the student loan servicer regularly reports information to such a credit
6bureau.
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(g) Refuse to communicate with an authorized representative of a student loan
8borrower who provides a written authorization signed by the student loan borrower,
9except that the student loan servicer may adopt procedures reasonably related to
10verifying that the representative is in fact authorized to act on behalf of the student
11loan borrower.
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(h) Make any false statement or omit a material fact in connection with
13information or reports filed with a governmental agency or in connection with an
14investigation conducted by the office or another governmental agency.
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(i) Fail to evaluate a student loan borrower for an income-based repayment
16program prior to placing the student loan borrower in forbearance or default, if an
17income-based repayment program is available to the student loan borrower.
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(j) Violate any applicable federal law or regulation relating to student
19education loan servicing, including the federal Truth in Lending Act,
15 USC 1601 20to
1667f, and regulations adopted under that act.
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21(4) (a) A student loan borrower injured by violation of this section may bring
22an action in any court of competent jurisdiction and recover the damages, fees, and
23penalties set forth in par. (b).
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1(b) A student loan servicer that fails to comply with any requirement imposed
2under this section with respect to a student loan borrower is liable in an amount
3equal to the sum of all of the following:
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1. Any actual damages sustained by the student loan borrower as result of the
5violation.
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2. If the student loan borrower establishes by a preponderance of the evidence
7that the violation was willful or intentional, a monetary award equal to 2 times the
8amount of actual damages.
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3. In the case of any successful action by the student loan borrower to enforce
10the liability set out in this paragraph, the costs of the action, together with
11reasonable attorney fees, as determined by the court.
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(c) For purposes of par. (b), actual damages includes damages caused by
13emotional distress or mental anguish with or without accompanying physical injury
14proximately caused by a violation of this section.
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(d) The remedies provided in this subsection do not preclude the availability
16of other remedies that may be available to a student loan borrower.
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17224.107 Office powers and duties.
(1) The office may conduct
18investigations and examinations as follows:
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(a) For purposes of initial licensing, renewal, suspension, or revocation or of
20investigation to determine compliance with this subchapter, the office may access,
21receive, and use any books, accounts, records, files, documents, information, or
22evidence belonging to a licensee or person under examination, including any of the
23following:
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1. Criminal, civil, and administrative history information.
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12. Personal history and experience information, including independent credit
2reports obtained from a consumer reporting agency, as defined in
15 USC 1681a.