AZ HB2348

Establishes a licensing requirement for student loan servicers operating in Arizona, with exemptions for banks, credit unions, and their wholly owned subsidiaries.

Creates a student loan ombudsman position within the Department of Insurance and Financial Institutions to receive complaints, resolve disputes, and educate borrowers about their rights and responsibilities.

Imposes specific responsibilities on student loan servicers including accurate credit reporting, honoring borrower benefits during loan transfers, responding to inquiries within 30 days, and properly handling nonconforming payments.

Prohibits deceptive practices such as fraud, misapplication of payments, inaccurate credit reporting, and harassing communications; requires compliance with federal lending laws.

Establishes enforcement mechanisms including license denial, suspension, or revocation for violations, civil penalties up to $100,000 per violation, and private causes of action allowing borrowers to recover actual damages, triple damages, punitive damages, and attorney fees.