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CA AB866

Bill

Status

Engrossed

6/2/2025

Primary Sponsor

Liz Ortega

Click for details

Origin

State Assembly

2025-2026 Regular Session

AI Summary

  • Student loan servicers would be explicitly subject to California's Unfair Competition Law (UCL), making them liable for civil penalties for unfair business practices

  • Student loans would be classified as "debt" under the Rosenthal Fair Debt Collection Practices Act, extending debt collection protections to student loan borrowers

  • Transactions creating student loans would qualify as "consumer credit transactions" under the Rosenthal Fair Debt Collection Practices Act

  • Expands existing criminal penalties for debt collection violations to apply to student loan servicing activities

  • No state reimbursement to local agencies required because costs arise only from changes to crime definitions or penalties

Legislative Description

Student loan servicing.

Last Action

In committee: Held under submission.

8/29/2025

Committee Referrals

Appropriations7/16/2025
Judiciary7/3/2025
Banking and Financial Institutions6/11/2025
Rules6/3/2025
Appropriations4/29/2025
Banking and Finance4/8/2025
Judiciary3/13/2025
Banking and Finance3/10/2025

Full Bill Text

No bill text available