AZ HB2047

Establishes licensing requirement for student loan servicers operating in Arizona, administered by the deputy director, with a $1,000 license fee and $800 investigation fee.

Creates position of student loan ombudsman to receive complaints, resolve disputes, compile complaint data, educate borrowers on their rights, and establish a borrower education course by October 1, 2022.

Exempts banks, credit unions, and their wholly owned subsidiaries from licensing requirements.

Prohibits student loan servicers from engaging in deceptive practices, misapplying payments, providing inaccurate credit reporting, harassing borrowers, or refusing communication with authorized representatives.

Imposes civil penalties up to $100,000 per violation and creates private right of action for borrowers, including actual damages, treble damages, punitive damages, and attorney fees for willful violations.