H.F. No. 3820 Summary

• Establishes a student loan ombudsperson within the Department of Commerce to receive and resolve borrower complaints, compile complaint data, and provide education about student loan rights and responsibilities.

• Requires student loan servicers to obtain a license from the Commissioner of Commerce, with initial fees of $1,000 (license) and $800 (investigation), and renewal fees of $500 and $400 respectively.

• Exempts financial institutions, persons servicing three or fewer loans annually with their own funds, and government agencies from licensure requirements.

• Prohibits student loan servicers from misleading borrowers, misrepresenting loan terms or fees, misapplying payments, providing inaccurate credit reporting information, and making false statements to the commissioner or government agencies.

• Grants the commissioner authority to deny, suspend, or revoke licenses and impose civil penalties for violations, including fraud, deceptive practices, criminal conduct, or failure to cooperate with investigations.