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§ 26-602. Student loan servicers

West's Annotated Code of MarylandEducationEffective: April 13, 2021

West's Annotated Code of Maryland
Education (Refs & Annos)
Division IV. Other Education Provisions [Titles 21-End] (Refs & Annos)
Title 26. Prohibitions and Penalties (Refs & Annos)
Subtitle 6. Student Loan Servicers (Refs & Annos)
Effective: April 13, 2021
MD Code, Education, § 26-602
§ 26-602. Student loan servicers
Currentness
Prohibited acts
(a) Except as otherwise required by federal law or a court order, a student loan servicer may not:
(1) Employ, directly or indirectly, any scheme, device, or artifice to mislead a student loan borrower;
(2) Engage in any unfair, abusive, or deceptive trade practice toward any person;
(3) Misrepresent information or omit any material information in connection with the servicing of a student education loan, including:
(i) Any fee owed by a student loan borrower;
(ii) Any payment due by a student loan borrower;
(iii) The appropriateness or availability of a student loan borrower's repayment options;
(iv) The terms and conditions of the student education loan; and
(v) The student loan borrower's obligations under the student education loan;
(4) Obtain property by misrepresentation of fact or omission of material fact;
(5) On or after February 1, 2020, allocate a nonconforming payment in a manner other than as directed by the student loan borrower if, in writing or electronically, the student loan borrower:
(i) Makes a one-time direction for the allocation of future payments;
(ii) Directs an allocation of a payment at the time the payment is made;
(iii) Directs an allocation in response to an inquiry by the student loan servicer; or
(iv) Changes an existing direction for the allocation of future payments;
(6) Knowingly or recklessly misapply, or refuse to correct a misapplication of a payment from a student loan borrower;
(7) Knowingly or recklessly provide inaccurate information to a consumer reporting agency, or refuse to correct inaccurate information provided to a consumer reporting agency;
(8) If a student loan servicer regularly reports information to a consumer reporting agency, fail to report the favorable history of a student loan borrower to a nationally recognized consumer reporting agency at least once a year;
(9) Subject to subsection (b) of this section, refuse to communicate with an authorized representative of a student loan borrower who provides a written authorization signed by the student loan borrower;
(10) Negligently make a false statement or omit a material fact in connection with any information report filed with, or any investigation conducted by, a state or local government agency; or
(11) Violate any federal law concerning student education loan servicing.
Adoption of procedures to verify authorized representatives
(b) A student loan servicer may adopt procedures to verify that an authorized representative of a student loan borrower is, in fact, authorized to act on behalf of the student loan borrower.
Acknowledgment and response to written inquiry or complaint
(c)(1) A student loan servicer shall acknowledge receipt of a written inquiry or complaint from a student loan borrower or the authorized representative of a student loan borrower within 10 days after receiving the inquiry or complaint.
(2) Unless a response to the written inquiry is included in the acknowledgment required under paragraph (1) of this subsection, a student loan servicer shall provide information responding to a written inquiry or complaint received under paragraph (1) of this subsection within 30 days after receiving the inquiry or complaint.
(3) If a written inquiry or complaint received under paragraph (1) of this subsection relates to a student loan borrower's account balance, the information provided under paragraph (2) of this subsection shall:
(i) State that the student loan servicer has corrected the account balance; or
(ii) Explain why the student loan servicer believes that the student loan borrower's account is correct.
Request to provide documentation of student loan account
(d) If a student loan borrower requests a document concerning the account of the student loan borrower that is in the possession or control of a student loan servicer, the student loan servicer shall provide the document within 30 days after receiving the request.

Credits

Added by Acts 2019, c. 546, § 1, eff. Oct. 1, 2019. Amended by Acts 2021, c. 109, § 1, eff. April 13, 2021.
MD Code, Education, § 26-602, MD EDUC § 26-602
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document