AZ HB2290

Requires student loan servicers operating in Arizona to obtain a license from the deputy director, with exemptions for banks, credit unions, and their subsidiaries.

Establishes licensing fees of $1,000 (nonrefundable) plus $800 investigation fee, and requires applicants to submit financial statements and criminal history information.

Creates a student loan ombudsman position within the department to receive complaints, resolve disputes, compile complaint data, and establish a borrower education course by October 1, 2025.

Prohibits servicers from engaging in fraud, deception, misapplying payments, providing inaccurate credit reporting, or harassing borrowers; requires accurate payment reporting and honoring of borrower benefits during loan transfers.

Imposes civil penalties up to $100,000 per violation and authorizes borrowers to sue for actual damages, treble damages (three times collected amounts), punitive damages, and attorney fees for willful noncompliance.