HB 2113 Summary

• Establishes a licensing requirement for student loan servicers operating in Arizona, administered by the Department of Insurance and Financial Institutions deputy director, with exemptions for banks, credit unions, and their subsidiaries.

• Requires student loan servicer applicants to pay $1,000 license fee and $800 investigation fee, submit financial statements, and undergo criminal background checks; licenses expire every two years and require renewal by September 1.

• Prohibits deceptive practices including fraud, misapplication of payments, inaccurate credit reporting, harassment, and false statements to government agencies; requires accurate reporting to credit bureaus and timely responses to borrower inquiries.

• Creates a student loan ombudsman position to receive and resolve borrower complaints, compile complaint data, provide borrower education, and monitor student loan lending laws and practices.

• Establishes civil penalties of up to $100,000 per violation and allows borrowers to sue for actual damages, triple the amount collected, punitive damages, and attorney fees for servicer violations.