Student loan servicing.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill clarifies that student loan servicers are subject to the Unfair Competition Law (UCL) and the Rosenthal Fair Debt Collection Practices Act in California. Specifically, it designates student loans as debts covered by the Rosenthal Act and defines transactions resulting in student loans as consumer credit transactions under that same act. The bill also clarifies that no state reimbursement is required for local agencies or school districts due to the creation of a new crime.
Key provisions
- Designates student loans as debts subject to the Rosenthal Fair Debt Collection Practices Act.
- Defines transactions giving rise to student loans as consumer credit transactions under the Rosenthal Act.
- Specifies that student loan servicers are subject to the Unfair Competition Law.
- States that no state reimbursement is required for local agencies or school districts due to the bill's provisions.
Who is affected
- Student loan borrowers
- Student loan servicers
- Debt collectors
- Local agencies and school districts
Notable changes
- Expands the scope of the Rosenthal Fair Debt Collection Practices Act to include student loans.
- Adds a new section to the Financial Code regarding student loan servicers and their obligations under the UCL.
Fiscal impact
Bill text
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Sponsors
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1 on record
Primary sponsor
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