Substitute Senate Bill No. 890 Summary

• Establishes licensing requirements for private student loan servicers effective July 1, 2021, with a $900 annual license fee, and registration requirements for federal student loan servicers with a $900 annual registration fee.

• Banks, credit unions, and their wholly owned subsidiaries are exempt from licensure requirements for student loan servicing activities.

• Prohibits student loan servicers from engaging in fraud, deception, misrepresenting loan terms, misapplying payments, providing inaccurate credit bureau information, or failing to maintain compliance policies.

• Grants the commissioner authority to conduct investigations, examinations, and enforce compliance through license suspension, revocation, or civil penalties; allows automatic license suspension for returned payments.

• Creates a private right of action for student loan borrowers to sue servicers for violations in Superior Court, with recovery of actual damages, attorney fees, court costs, punitive damages, and treble damages if servicers interfere with payment arrangements or loan forgiveness benefits.