Full Text of SB1351 100th General Assembly
SB1351sam003 100TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 4/27/2017
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| 1 | | AMENDMENT TO SENATE BILL 1351
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1351, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "ARTICLE 1. GENERAL PROVISIONS | 6 | | "Section 1-1. Short title. This Act may be cited as the | 7 | | Student Loan Servicing Rights Act. | 8 | | Section 1-5. Definitions. As used in this Act: | 9 | | "Applicant" means a person applying for a license pursuant | 10 | | to this Act. | 11 | | "Borrower" or "student loan borrower" means a person who | 12 | | has received or agreed to pay a student loan for his or her own | 13 | | educational expenses. | 14 | | "Cosigner" means a person who has agreed to share | 15 | | responsibility for repaying a student loan with a borrower. |
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| 1 | | "Department" means the Department of Financial and | 2 | | Professional Regulation. | 3 | | "Division of Banking" means the Division of Banking of the | 4 | | Department of Financial and Professional Regulation. | 5 | | "Federal loan borrower eligible for referral to a repayment | 6 | | specialist" means a borrower who possesses any of the following | 7 | | characteristics: | 8 | | (1) requests information related to options to reduce | 9 | | or suspend his or her monthly payment; | 10 | | (2) indicates that he or she is experiencing or | 11 | | anticipates experiencing financial hardship, distress, or | 12 | | difficulty making his or her payments; | 13 | | (3) has missed 2 consecutive monthly payments; | 14 | | (4) is at least 75 days delinquent; | 15 | | (5) is enrolled in a discretionary forbearance for more | 16 | | than 9 of the previous 12 months; | 17 | | (6) has rehabilitated or consolidated one or more loans | 18 | | out of default within the past 12 months; or | 19 | | (7) has not completed a course of study, as reflected | 20 | | in the servicer's records, or the borrower identifies | 21 | | himself or herself as not having completed a program of | 22 | | study. | 23 | | "Federal education loan" means any loan made, guaranteed, | 24 | | or insured under Title IV of the federal Higher Education Act | 25 | | of 1965. | 26 | | "Income-driven payment plan certification" means the |
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| 1 | | documentation related to a federal student loan borrower's | 2 | | income or financial status the borrower must submit to renew an | 3 | | income-driven repayment plan. | 4 | | "Income-driven repayment options" includes the | 5 | | Income-Contingent Repayment Plan, the Income-Based Repayment | 6 | | Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn | 7 | | Plan, the Revised Pay As You Earn Plan, and any other federal | 8 | | student loan repayment plan that is calculated based on a | 9 | | borrower's income. | 10 | | "Licensee" means a person licensed pursuant to this Act. | 11 | | "Other repayment plans" means the Standard Repayment Plan, | 12 | | the Graduated Repayment Plan, the Extended Repayment Plan, or | 13 | | any other federal student loan repayment plan not based on a | 14 | | borrower's income. | 15 | | "Private loan borrower eligible for referral to a repayment | 16 | | specialist" means a borrower who possesses any of the following | 17 | | characteristics: | 18 | | (1) requests information related to options to reduce | 19 | | or suspend his or her monthly payments; or | 20 | | (2) indicates that he or she is experiencing or | 21 | | anticipates experiencing financial hardship, distress, or | 22 | | difficulty making his or her payments. | 23 | | "Requester" means any borrower or cosigner that submits a | 24 | | request for assistance. | 25 | | "Request for assistance" means all inquiries, complaints, | 26 | | account disputes, and requests for documentation a servicer |
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| 1 | | receives from borrowers or cosigners. | 2 | | "Secretary" means the Secretary of Financial and | 3 | | Professional Regulation, or his or her designee, including the | 4 | | Director of the Division of Banking of the Department of | 5 | | Financial and Professional Regulation. | 6 | | "Servicing" means: (1) receiving any scheduled periodic | 7 | | payments from a student loan borrower or cosigner pursuant to | 8 | | the terms of a student loan; (2) applying the payments of | 9 | | principal and interest and such other payments with respect to | 10 | | the amounts received from a student loan borrower or cosigner, | 11 | | as may be required pursuant to the terms of a student loan; and | 12 | | (3) performing other administrative services with respect to a | 13 | | student loan. | 14 | | "Student loan" or "loan" means any federal education loan | 15 | | or other loan primarily for use to finance a postsecondary | 16 | | education and costs of attendance at a postsecondary | 17 | | institution, including, but not limited to, tuition, fees, | 18 | | books and supplies, room and board, transportation, and | 19 | | miscellaneous personal expenses. "Student loan" includes a | 20 | | loan made to refinance a student loan. | 21 | | "Student loan" shall not include an extension of credit | 22 | | under an open-end consumer credit plan, a reverse mortgage | 23 | | transaction, a residential mortgage transaction, or any other | 24 | | loan that is secured by real property or a dwelling. | 25 | | "Student loan" shall not include an extension of credit | 26 | | made by a postsecondary educational institution to a borrower |
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| 1 | | if one of the following apply: | 2 | | (1) The term of the extension of credit is no longer | 3 | | than the borrower's education program. | 4 | | (2) The remaining, unpaid principal balance of the | 5 | | extension of credit is less than $1,500 at the time of the | 6 | | borrower's graduation or completion of the program. | 7 | | (3) The borrower fails to graduate or successfully | 8 | | complete his or her education program and has a balance due | 9 | | at the time of his or her disenrollment from the | 10 | | postsecondary institution. | 11 | | "Student loan servicer" or "servicer" means any person | 12 | | engaged in the business of servicing student loans. | 13 | | "Student loan servicer" shall not include: | 14 | | (1) a bank, savings bank, savings association, or | 15 | | credit union organized under the laws of the State or any | 16 | | other state or under the laws of the United States; | 17 | | (2) a wholly owned subsidiary of any bank, savings | 18 | | bank, savings association, or credit union organized under | 19 | | the laws of the State or any other state or under the laws | 20 | | of the United States; | 21 | | (3) an operating subsidiary where each owner of the | 22 | | operating subsidiary is wholly owned by the same bank, | 23 | | savings bank, savings association, or credit union | 24 | | organized under the laws of the State or any other state or | 25 | | under the laws of the United States; | 26 | | (4) the Illinois Student Assistance Commission and its |
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| 1 | | agents; | 2 | | (5) a public postsecondary educational institution or
| 3 | | a private nonprofit postsecondary educational institution
| 4 | | servicing a student loan it extended to the borrower; | 5 | | (6) a licensed debt management service under the Debt
| 6 | | Management Service Act, except to the extent that the
| 7 | | organization acts as a subcontractor, affiliate, or
| 8 | | service provider for an entity that is otherwise subject to | 9 | | licensure under this Act; | 10 | | (7) any collection agency licensed under the
| 11 | | Collection Agency Act that is collecting post-default
| 12 | | debt; | 13 | | (8) in connection with its responsibilities as a | 14 | | guaranty agency engaged in default aversion, a State | 15 | | nonprofit private institution or organization having an | 16 | | agreement with the U.S. Secretary of Education under | 17 | | Section 428(b) of the Higher Education Act (20 U.S.C. | 18 | | 1078(B)); or
| 19 | | (9) a State institution or a nonprofit private | 20 | | organization designated by a governmental entity to make or | 21 | | service student loans, provided in each case that the | 22 | | institution or organization services fewer than 20,000 | 23 | | student loan accounts of borrowers who reside in Illinois.
| 24 | | ARTICLE 5. STUDENT LOAN BILL OF RIGHTS |
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| 1 | | Section 5-5. General provisions. | 2 | | (a) A servicer shall not engage in any unfair or deceptive | 3 | | practice toward any borrower or cosigner or misrepresent or | 4 | | omit any material information in connection with the servicing | 5 | | of a student loan, including, but not limited to, | 6 | | misrepresenting the amount, nature, or terms of any fee or | 7 | | payment due or claimed to be due on a student loan, the terms | 8 | | and conditions of the student loan agreement, or the borrower's | 9 | | or cosigner's obligations under the student loan or the terms | 10 | | of any repayment plans. | 11 | | (b) A servicer shall not misapply payments made by a | 12 | | borrower to the outstanding balance of a student loan. | 13 | | (c) A servicer shall oversee third parties, including | 14 | | subservicers, debt collectors, independent contractors, | 15 | | subsidiaries, affiliates, or other agents, to ensure that those | 16 | | companies comply with this Article 5. | 17 | | Section 5-10. Payment processing. | 18 | | (a) A servicer shall credit borrower and cosigner payments | 19 | | promptly and accurately. | 20 | | (b) A servicer shall provide borrowers and cosigners with | 21 | | prompt notice if the servicer changes the address to which the | 22 | | borrower or cosigner needs to send payments. | 23 | | (c) A servicer shall not charge a penalty to a borrower or | 24 | | cosigner if a student loan payment is received at an address | 25 | | used for payments for a period of 90 days after the change in |
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| 1 | | address. | 2 | | (d) A servicer shall not misrepresent the delinquent amount | 3 | | of the loan on any call with a borrower or cosigner. | 4 | | (e) A servicer shall allow a borrower or cosigner to | 5 | | specify instructions as to how an overpayment should be applied | 6 | | to the balance of the loan as consistent with the promissory | 7 | | note. | 8 | | Section 5-15. Fees. | 9 | | (a) Unless otherwise provided by federal law, a servicer | 10 | | may only charge late fees that are reasonable and proportional | 11 | | to the cost it incurs related to a late payment. | 12 | | (b) Unless otherwise provided by federal law, a servicer | 13 | | shall not charge a borrower or cosigner any fee to modify, | 14 | | defer, forbear, renew, extend, or amend the borrower's or | 15 | | cosigner's loan. | 16 | | Section 5-20. Billing statements. | 17 | | (a) In any student loan billing statement, a servicer shall | 18 | | not misrepresent the: | 19 | | (1) fees assessed; | 20 | | (2) total amount due for each loan; | 21 | | (3) payment due date; | 22 | | (4) date to avoid late fees; | 23 | | (5) accrued interest during the billing cycle; | 24 | | (6) default payment methodology; |
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| 1 | | (7) means to provide instructions for a payment; or | 2 | | (8) procedure regarding escalated requests for | 3 | | assistance. | 4 | | (b) A servicer shall not misrepresent information | 5 | | regarding the $0 bill and advancement of the due date on any | 6 | | billing statement that reflects $0 owed. | 7 | | Section 5-25. Payment histories. A servicer shall provide a | 8 | | written payment history to a borrower or cosigner upon request | 9 | | at no cost within 21 calendar days of receiving the request. | 10 | | Section 5-30. Specialized assistance for student loan | 11 | | borrowers. | 12 | | (a) A servicer shall specially designate servicing and | 13 | | collections personnel deemed repayment specialists who have | 14 | | received enhanced training related to repayment options. | 15 | | (b) A servicer shall refrain from presenting forbearance as | 16 | | the sole or first repayment option to a student loan borrower | 17 | | struggling with repayment unless the servicer has determined | 18 | | that, based on the borrower's financial status, a short term | 19 | | forbearance is appropriate. | 20 | | (c) All inbound and outbound calls from a federal loan | 21 | | borrower eligible for referral to a repayment specialist and a | 22 | | private loan borrower eligible for referral to a repayment | 23 | | specialist shall be routed to a repayment specialist. | 24 | | (d) During each inbound or outbound communication with an |
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| 1 | | eligible federal loan borrower, a repayment specialist shall | 2 | | first inform a federal loan borrower eligible for referral to a | 3 | | repayment specialist that federal income-driven repayment | 4 | | plans that can reduce the borrower's monthly payment may be | 5 | | available, discuss such plans, and assist the borrower in | 6 | | determining whether a particular repayment plan may be | 7 | | appropriate for the borrower. | 8 | | (e) A repayment specialist shall assess the long-term and | 9 | | short-term financial situation and needs of a federal loan | 10 | | borrower eligible for referral to a repayment specialist and | 11 | | consider any available specific information from the borrower | 12 | | as necessary to assist the borrower in determining whether a | 13 | | particular income-driven repayment option may be available to | 14 | | the borrower. | 15 | | (f) In each discussion with a federal loan borrower | 16 | | eligible for referral to a repayment specialist, a repayment | 17 | | specialist shall present and explain the following options, as | 18 | | appropriate: | 19 | | (1) total and permanent disability discharge, public | 20 | | service loan forgiveness, closed school discharge, and | 21 | | defenses to repayment; | 22 | | (2) other repayment plans; | 23 | | (3) deferment; and | 24 | | (4) forbearance. | 25 | | (g) A repayment specialist shall assess the long-term and | 26 | | short-term financial situation and needs of a private loan |
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| 1 | | borrower eligible for referral to a repayment specialist in | 2 | | determining whether any private loan repayment options may be | 3 | | appropriate for the borrower. | 4 | | (h) A servicer shall present and explain all private loan | 5 | | repayment options, including alternative repayment | 6 | | arrangements applicable to private student loan borrowers. | 7 | | (i) A servicer shall be prohibited from implementing any | 8 | | compensation plan that has the intended or actual effect of | 9 | | incentivizing a repayment specialist to violate this Act or any | 10 | | other measure that encourages undue haste or lack of quality. | 11 | | (j) The requirements of this Section shall not apply if a | 12 | | repayment specialist has already conversed with a borrower | 13 | | consistent with the requirements of this Section. | 14 | | Section 5-35. Disclosures related to discharge and | 15 | | cancellation. If a servicer is aware that a student loan | 16 | | borrower attended a school the United States Department of | 17 | | Education has made findings supporting a defense to repayment | 18 | | claim or closed school discharge, or that a borrower may be | 19 | | eligible to have his or her loans forgiven under a total and | 20 | | permanent disability discharge program, the servicer's | 21 | | personnel shall disclose information related to the Department | 22 | | of Education's procedure for asserting a defense to repayment | 23 | | claim, closed school discharge, or submitting an application | 24 | | for a total and permanent disability discharge. |
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| 1 | | Section 5-40. Income-driven repayment plan certifications. | 2 | | A servicer shall disclose the date that a borrower's | 3 | | income-driven payment plan certification will expire and the | 4 | | consequences to the borrower for failing to recertify by the | 5 | | date, including the new repayment amount. | 6 | | Section 5-45. Information to be provided to private | 7 | | education loan borrowers. | 8 | | (a) A servicer shall provide on its website a description | 9 | | of any alternative repayment plan offered by the servicer for | 10 | | private education loans. | 11 | | (b) A servicer shall establish policies and procedures and | 12 | | implement them consistently in order to facilitate evaluation | 13 | | of private student loan alternative repayment arrangement | 14 | | requests, including providing accurate information regarding | 15 | | any private student loan alternative repayment arrangements | 16 | | that may be available to the borrower through the promissory | 17 | | note or that may have been marketed to the borrower through | 18 | | marketing materials. | 19 | | A private student loan alternative repayment arrangements | 20 | | shall consider the affordability of repayment plans for a | 21 | | distressed borrower, as well as investor, guarantor, and | 22 | | insurer guidelines and previous outcome and performance | 23 | | information. | 24 | | (c) If a servicer offers private student loan repayment | 25 | | arrangements, a servicer shall consistently present and offer |
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| 1 | | those arrangements to borrowers with similar financial | 2 | | circumstances. | 3 | | Section 5-50. Cosigner release. For private student loans, | 4 | | a servicer shall provide information on its website concerning | 5 | | the availability and criteria for a cosigner release. | 6 | | Section 5-55. Payoff statements. A servicer shall indicate | 7 | | on its website that a borrower may request a payoff statement. | 8 | | A servicer shall provide the payoff statement within 10 days, | 9 | | including information the requester needs to pay off the loan. | 10 | | If a payoff is made, the servicer must send a paid-in-full | 11 | | notice within 30 days. | 12 | | Section 5-60. Requirements related to the transfer of | 13 | | servicing. | 14 | | (a) When acting as the transferor servicer, a servicer | 15 | | shall provide to each borrower subject to the transfer a | 16 | | written notice not less than 15 calendar days before the | 17 | | effective date of the transfer. The transferee servicer and | 18 | | transferor servicer may provide a single notice, in which case | 19 | | the notice shall be provided not less than 15 calendar days | 20 | | before the effective date of the transfer. The notice by the | 21 | | transferor servicer or, if applicable, the combined notice of | 22 | | transfer shall contain the following information: | 23 | | (1) the effective date of the transfer of servicing; |
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| 1 | | (2) the name, address, and toll-free telephone number | 2 | | for the transferor servicer's designated point of contact | 3 | | that can be contacted by the borrower to obtain answers to | 4 | | servicing inquiries; | 5 | | (3) the name, address, and toll-free telephone number | 6 | | for the transferee servicer's designated point of contact | 7 | | that can be contacted by the borrower to obtain answers to | 8 | | servicing inquiries; | 9 | | (4) the date on which the transferor servicer will | 10 | | cease to accept payments relating to the loan and the date | 11 | | on which the transferee servicer will begin to accept such | 12 | | payments; the dates shall either be the same or consecutive | 13 | | days; | 14 | | (5) a statement that the transfer of servicing does not | 15 | | affect any term or condition of the loan other than terms | 16 | | directly related to the servicing of a loan; | 17 | | (6) information on whether the borrower's | 18 | | authorization for recurring electronic fund transfers, if | 19 | | applicable, will be transferred to the transferee | 20 | | servicer; if any such recurring electronic funds transfers | 21 | | cannot be transferred, the transferee servicer shall | 22 | | provide information explaining how the borrower may | 23 | | establish new recurring electronic funds transfers with | 24 | | the transferee servicer; and | 25 | | (7) a statement of the current loan balance, including | 26 | | the current unpaid amount of principal, interest, and fees. |
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| 1 | | (b) When acting as the transferee servicer, a servicer | 2 | | shall provide to each borrower subject to the transfer a | 3 | | written notice not more than 15 calendar days after the | 4 | | effective date of the transfer. The transferee servicer and | 5 | | transferor servicer may provide a combined notice of transfer, | 6 | | in which case the notice shall be provided not less than 15 | 7 | | days before the effective date of the transfer. The notice by | 8 | | the transferee servicer or, if applicable, the combined notice | 9 | | of transfer shall contain the following information: | 10 | | (1) the effective date of the transfer of servicing; | 11 | | (2) the name, address, and toll-free telephone number | 12 | | for the transferee servicer's designated point of contact | 13 | | that can be contacted by the borrower to obtain answers to | 14 | | servicing inquiries; | 15 | | (3) the date on which the transferor servicer will | 16 | | cease to accept payments relating to the loan and the date | 17 | | on which the transferee servicer will begin to accept such | 18 | | payments; the dates shall either be the same or consecutive | 19 | | days; | 20 | | (4) a statement that the transfer of servicing does not | 21 | | affect any term or condition of the student loan other than | 22 | | terms directly related to the servicing of a loan; | 23 | | (5) information on whether the borrower's | 24 | | authorization for recurring electronic fund transfers, if | 25 | | applicable, will be transferred to the transferee | 26 | | servicer; if any such recurring electronic funds transfers |
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| 1 | | cannot be transferred, the transferee servicer shall | 2 | | provide information explaining how the borrower may | 3 | | establish new recurring electronic funds transfers with | 4 | | the transferee servicer; and | 5 | | (6) a statement of the current loan balance, including | 6 | | the current unpaid amount of principal, interest, and fees. | 7 | | (c) During the 60 calendar day period beginning on the | 8 | | effective date of transfer of the servicing of any loan, a | 9 | | payment timely made to the transferor servicer may not be | 10 | | treated as late for any purpose by the transferee servicer, | 11 | | including the assessment of late fees, accrual of additional | 12 | | interest, and furnishing negative credit information. | 13 | | (d) To the extent practicable, for at least 120 calendar | 14 | | days beginning on the effective date of transfer of servicing | 15 | | of any loan, when acting as the transferor servicer, a servicer | 16 | | shall promptly transfer payments received to the transferee | 17 | | servicer for application to the borrower's loan account. | 18 | | (e) Unless a borrower's authorizations for recurring | 19 | | electronic fund transfers are automatically transferred to the | 20 | | transferee servicer, when acting as transferee servicer, a | 21 | | servicer shall make available to a borrower whose loan | 22 | | servicing is transferred an online process through which a | 23 | | borrower may make a new authorization for recurring electronic | 24 | | fund transfers. A servicer shall also provide a process through | 25 | | which the borrower may make a new authorization for recurring | 26 | | electronic funds transfers by phone or through written |
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| 1 | | approval. | 2 | | Section 5-65. Requests for assistance; account dispute | 3 | | resolution; appeals. | 4 | | (a) A servicer shall implement reasonable policies and | 5 | | procedures for accepting, processing, investigating, and | 6 | | responding to requests for assistance in a timely and effective | 7 | | manner, including, but not limited to, the following | 8 | | requirements: | 9 | | (1) A servicer shall provide readily accessible | 10 | | methods for consumers to submit a request for assistance to | 11 | | the servicer, including such methods as phone, email, and | 12 | | U.S. mail. | 13 | | (2) A servicer shall post on its website and disclose | 14 | | on its billing statements: | 15 | | (A) the toll-free telephone number, email address, | 16 | | and mailing address for consumers to submit a requests | 17 | | for assistance to the servicer; and | 18 | | (B) the procedures for a requester to send a | 19 | | written communication to the servicer regarding any | 20 | | request for assistance. | 21 | | (3) For any request for assistance that includes a | 22 | | request for documentation or information, where a response | 23 | | cannot be immediately provided, a servicer shall provide | 24 | | the requested documentation or information to the | 25 | | requester within 14 calendar days of the request; if a |
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| 1 | | servicer determines in good faith that it is unable to | 2 | | provide the documentation or information within 14 | 3 | | calendar days, promptly after making the determination, | 4 | | the servicer shall notify the requester of the expected | 5 | | response period, which must be reasonable for the request | 6 | | for assistance. | 7 | | (b) A servicer shall implement a process by which a | 8 | | requester can escalate any request for assistance. Such process | 9 | | shall allow a requester who has made a request for assistance | 10 | | on the phone and who receives a response during the call to | 11 | | obtain immediate review of the response by an employee of the | 12 | | servicer at a higher supervisory level. | 13 | | (c) The following requirements shall apply when a requester | 14 | | submits a written or oral request for assistance which contains | 15 | | an account dispute to a servicer: | 16 | | (1) Within 14 calendar days after its receipt of the | 17 | | written communication or oral request for further | 18 | | escalation, a servicer shall attempt to make contact, | 19 | | including providing the requester with name and contact | 20 | | information of the representative handling the account | 21 | | dispute, by phone or in writing, to the requester and | 22 | | document such attempt in the borrower's account. | 23 | | (2) A servicer shall complete the following actions | 24 | | within 30 calendar days of its receipt of the written | 25 | | communication or oral request for further escalation, | 26 | | subject to paragraph (3) of this subsection: |
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| 1 | | (A) conduct a thorough investigation of the | 2 | | account dispute; | 3 | | (B) make all appropriate corrections to the | 4 | | account of the requester, including crediting any late | 5 | | fees assessed and derogatory credit furnishing as the | 6 | | result of any error, and, if any corrections are made, | 7 | | sending the requester a written notification that | 8 | | includes the following information: | 9 | | (i) an explanation of the correction or | 10 | | corrections to the requester's account that have | 11 | | been made; and | 12 | | (ii) the toll-free telephone number, email | 13 | | address, and mailing address of the servicer's | 14 | | personnel knowledgeable about the investigation | 15 | | and resolution of the account dispute. | 16 | | (3) If a servicer determines in good faith that it | 17 | | cannot complete a thorough investigation of the account | 18 | | dispute within 30 calendar days after receiving the written | 19 | | communication or oral request for further escalation | 20 | | regarding the account dispute, then, promptly after making | 21 | | the determination, the servicer shall notify the requester | 22 | | of the expected resolution time period, which must be | 23 | | reasonable for the account dispute. A servicer must | 24 | | complete the actions listed in the investigation and | 25 | | resolution of account dispute within this time period. | 26 | | (4) If a servicer determines as a result of its |
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| 1 | | investigation that the requested changes to a requester's | 2 | | dispute will not be made, the servicer shall provide the | 3 | | requester with a written notification that includes the | 4 | | following information: | 5 | | (A) a description of its determination and an | 6 | | explanation of the reasons for that determination; | 7 | | (B) the toll-free telephone number, email address, | 8 | | and mailing address of the servicer's personnel | 9 | | knowledgeable about the investigation and resolution | 10 | | of the account dispute; | 11 | | (C) instructions about how the requester can | 12 | | appeal the servicer's determination in accordance with | 13 | | paragraph (5) of this subsection; and | 14 | | (D) information regarding the method by which a | 15 | | borrower may request copies of documents a servicer | 16 | | relied on to make a determination that no changes to a | 17 | | requester's account will be made. | 18 | | (5) After the requester receives a determination | 19 | | regarding an account dispute in accordance with paragraph | 20 | | (4) of this subsection, the servicer shall allow a process | 21 | | by which the requester can appeal, in writing, the | 22 | | determination. The appeals process shall include: | 23 | | (A) a written acknowledgment notifying the | 24 | | requester that the servicer has commenced the appeals | 25 | | process; such acknowledgment shall be sent within 14 | 26 | | calendar days after receiving a written request for |
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| 1 | | appeal from the requester; | 2 | | (B) an independent reassessment of the servicer's | 3 | | determination regarding the account dispute, performed | 4 | | by another employee of the servicer at an equal or | 5 | | higher supervisory level than the employee or | 6 | | employees involved in the initial account dispute | 7 | | determination; | 8 | | (C) investigation and resolution of appeals within | 9 | | 30 calendar days after a servicer's commencement of the | 10 | | appeals process; and | 11 | | (D) notification sent to the requester, in | 12 | | writing, documenting the outcome of the appeal, | 13 | | including any reason for denial. | 14 | | (d) While a requester has a pending account dispute, | 15 | | including any applicable appeal, a servicer shall take | 16 | | reasonable steps to: | 17 | | (1) prevent negative credit reporting with respect to | 18 | | the borrower's or cosigner's account while the dispute is | 19 | | under review; and | 20 | | (2) suspend all collection activities on the account | 21 | | while the account dispute is being researched or resolved, | 22 | | if the account dispute is related to the delinquency. | 23 | | ARTICLE 10. STUDENT LOAN OMBUDSMAN | 24 | | Section 10-5. Student Loan Ombudsman. |
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| 1 | | (a) The position of Student Loan Ombudsman is created | 2 | | within the Office of the Attorney General to provide timely | 3 | | assistance to student loan borrowers. | 4 | | (b) The Student Loan Ombudsman, in consultation with the | 5 | | Secretary, shall: | 6 | | (1) receive, review, and attempt to resolve any | 7 | | complaints from student loan borrowers, including, but not | 8 | | limited to, attempts to resolve complaints in | 9 | | collaboration with institutions of higher education, | 10 | | student loan servicers, and any other participants in | 11 | | student loan lending; | 12 | | (2) compile and analyze data on student loan borrower | 13 | | complaints; | 14 | | (3) assist student loan borrowers to understand their | 15 | | rights and responsibilities under the terms of student | 16 | | education loans; | 17 | | (4) provide information to the public, agencies, | 18 | | legislators, and others regarding the problems and | 19 | | concerns of student loan borrowers and make | 20 | | recommendations for resolving those problems and concerns; | 21 | | (5) analyze and monitor the development and | 22 | | implementation of federal, State, and local laws, | 23 | | regulations, and policies relating to student loan | 24 | | borrowers and recommend any changes the Student Loan | 25 | | Ombudsman deems necessary; | 26 | | (6) review the complete student education loan history |
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| 1 | | for any student loan borrower who has provided written | 2 | | consent for such review; | 3 | | (7) disseminate information concerning the | 4 | | availability of the Student Loan Ombudsman to assist | 5 | | student loan borrowers and potential student loan | 6 | | borrowers, as well as public institutions of higher | 7 | | education, student loan servicers, and any other | 8 | | participant in student education loan lending, with any | 9 | | student loan servicing concerns; and | 10 | | (8) take any other actions necessary to fulfill the | 11 | | duties of the Student Loan Ombudsman as set forth in this | 12 | | subsection. | 13 | | ARTICLE 15. LICENSURE | 14 | | Section 15-5. Scope; requirement for student loan | 15 | | servicing license. | 16 | | (a) It shall be unlawful for any person to operate as a | 17 | | student loan servicer in Illinois except as authorized by this | 18 | | Act and without first having obtained a license in accordance | 19 | | with this Act. | 20 | | (b) The provisions of this Act do not apply to any of the | 21 | | following: | 22 | | (1) a bank, savings bank, savings association, or | 23 | | credit union organized under the laws of the State or any | 24 | | other state or under the laws of the United States; |
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| 1 | | (2) a wholly owned subsidiary of any bank, savings | 2 | | bank, savings association, or credit union organized under | 3 | | the laws of the State or any other state or under the laws | 4 | | of the United States; | 5 | | (3) an operating subsidiary where each owner of the | 6 | | operating subsidiary is wholly owned by the same bank, | 7 | | savings bank, savings association, or credit union | 8 | | organized under the laws of the State or any other state or | 9 | | under the laws of the United States; | 10 | | (4) the Illinois Student Assistance Commission and its | 11 | | agents; | 12 | | (5) a public postsecondary educational institution or | 13 | | a private nonprofit postsecondary educational institution | 14 | | servicing a student loan it extended to the borrower; | 15 | | (6) a licensed debt management service under the Debt | 16 | | Management Service Act, except to the extent that the | 17 | | organization acts as a subcontractor, affiliate, or | 18 | | service provider for an entity that is otherwise subject to | 19 | | licensure under this Act; | 20 | | (7) any collection agency licensed under the | 21 | | Collection Agency Act that is collecting post-default | 22 | | debt; | 23 | | (8) in connection with its responsibilities as a | 24 | | guaranty agency engaged in default aversion, a State | 25 | | nonprofit private institution or organization having an | 26 | | agreement with the U.S. Secretary of Education under |
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| 1 | | Section 428(b) of the Higher Education Act (20 U.S.C. | 2 | | 1078(B); or
| 3 | | (9) a State institution or a nonprofit private | 4 | | organization designated by a governmental entity to make or | 5 | | service student loans, provided in each case that the | 6 | | institution or organization services fewer than 20,000 | 7 | | student loan accounts of borrowers who reside in Illinois.
| 8 | | Section 15-10. Licensee name. No person, partnership, | 9 | | association, corporation, limited liability company, or other | 10 | | entity engaged in the business regulated by this Act shall | 11 | | operate such business under a name other than the real names of | 12 | | the entity and individuals conducting such business. Such | 13 | | business may in addition operate under an assumed corporate | 14 | | name pursuant to the Business Corporation Act of 1983, an | 15 | | assumed limited liability company name pursuant to the Limited | 16 | | Liability Company Act, or an assumed business name pursuant to | 17 | | the Assumed Business Name Act. | 18 | | Section 15-15. Application process; investigation; fees. | 19 | | (a) The Secretary shall issue a license upon completion of | 20 | | all of the following: | 21 | | (1) the filing of an application for license with the
| 22 | | Secretary or the Nationwide Mortgage Licensing System and | 23 | | Registry as approved by the Secretary; | 24 | | (2) the filing with the Secretary of a listing of
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| 1 | | judgments entered against, and bankruptcy petitions by, | 2 | | the license applicant for the preceding 10 years; | 3 | | (3) the payment, in certified funds, of investigation
| 4 | | and application fees, the total of which shall be in an | 5 | | amount equal to $1,000 for an initial application and $800 | 6 | | for a background investigation; | 7 | | (4) the filing of an audited balance sheet, including | 8 | | all footnotes prepared by a certified public accountant in | 9 | | accordance with generally accepted accounting principles | 10 | | and generally accepted auditing standards; notwithstanding | 11 | | the requirements of this subsection, an applicant that is a | 12 | | subsidiary may submit audited consolidated financial | 13 | | statements of its parent, intermediary parent, or ultimate | 14 | | parent as long as the consolidated statements are supported | 15 | | by consolidating statements that include the applicant's | 16 | | financial statement; if the consolidating statements are | 17 | | unaudited, the applicant's chief financial officer shall | 18 | | attest to the applicant's financial statements disclosed | 19 | | in the consolidating statements; and | 20 | | (5) an investigation of the averments required by
| 21 | | Section 15-30, which investigation must allow the | 22 | | Secretary to issue positive findings stating that the | 23 | | financial responsibility, experience, character, and | 24 | | general fitness of the license applicant and of the members | 25 | | thereof if the license applicant is a partnership or | 26 | | association, of the officers and directors thereof if the |
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| 1 | | license applicant is a corporation, and of the managers and | 2 | | members that retain any authority or responsibility under | 3 | | the operating agreement if the license applicant is a | 4 | | limited liability company, are such as to command the | 5 | | confidence of the community and to warrant belief that the | 6 | | business will be operated honestly, fairly, and | 7 | | efficiently within the purpose of this Act; if the | 8 | | Secretary does not so find, he or she shall not issue the | 9 | | license, and he or she shall notify the license applicant | 10 | | of the denial. | 11 | | The Secretary may impose conditions on a license if the | 12 | | Secretary determines that those conditions are necessary or | 13 | | appropriate. These conditions shall be imposed in writing and | 14 | | shall continue in effect for the period prescribed by the | 15 | | Secretary. | 16 | | (b) All licenses shall be issued to the license applicant. | 17 | | Upon receipt of the license, a student loan servicing licensee | 18 | | shall be authorized to engage in the business regulated by this | 19 | | Act. The license shall remain in full force and effect until it | 20 | | expires without renewal, is surrendered by the licensee, or | 21 | | revoked or suspended as hereinafter provided. | 22 | | Section 15-20. Application form. | 23 | | (a) Application for a student loan servicer license must be | 24 | | made in accordance with Section 15-40 and, if applicable, in | 25 | | accordance with requirements of the Nationwide Mortgage |
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| 1 | | Licensing System and Registry. The application shall be in | 2 | | writing, under oath, and on a form obtained from and prescribed | 3 | | by the Secretary, or may be submitted electronically, with | 4 | | attestation, to the Nationwide Mortgage Licensing System and | 5 | | Registry. | 6 | | (b) The application shall contain the name and complete | 7 | | business and residential address or addresses of the license | 8 | | applicant. If the license applicant is a partnership, | 9 | | association, corporation, or other form of business | 10 | | organization, the application shall contain the names and | 11 | | complete business and residential addresses of each member, | 12 | | director, and principal officer thereof. The application shall | 13 | | also include a description of the activities of the license | 14 | | applicant in such detail and for such periods as the Secretary | 15 | | may require, including all of the following: | 16 | | (1) an affirmation of financial solvency noting such
| 17 | | capitalization requirements as may be required by the | 18 | | Secretary and access to such credit as may be required by | 19 | | the Secretary; | 20 | | (2) an affirmation that the license applicant or its
| 21 | | members, directors, or principals, as may be appropriate, | 22 | | are at least 18 years of age; | 23 | | (3) information as to the character, fitness,
| 24 | | financial and business responsibility, background, | 25 | | experience, and criminal record of any (i) person, entity, | 26 | | or ultimate equitable owner that owns or controls, directly |
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| 1 | | or indirectly, 10% or more of any class of stock of the | 2 | | license applicant; (ii) person, entity, or ultimate | 3 | | equitable owner that is not a depository institution, as | 4 | | defined in Section 1007.50 of the Savings Bank Act, that | 5 | | lends, provides, or infuses, directly or indirectly, in any | 6 | | way, funds to or into a license applicant in an amount | 7 | | equal to or more than 10% of the license applicant's net | 8 | | worth; (iii) person, entity, or ultimate equitable owner | 9 | | that controls, directly or indirectly, the election of 25% | 10 | | or more of the members of the board of directors of a | 11 | | license applicant; or (iv) person, entity, or ultimate | 12 | | equitable owner that the Secretary finds influences | 13 | | management of the license applicant; the provisions of this | 14 | | subsection shall not apply to a public official serving on | 15 | | the board of directors of a State guaranty agency; | 16 | | (4) upon written request by the licensee and
| 17 | | notwithstanding the provisions of paragraphs (1), (2), and | 18 | | (3) of this subsection, the Secretary may permit the | 19 | | licensee to omit all or part of the information required by | 20 | | those paragraphs if, in lieu of the omitted information, | 21 | | the licensee submits an affidavit stating that the | 22 | | information submitted on the licensee's previous renewal | 23 | | application is still true and accurate; the Secretary may | 24 | | adopt rules prescribing the form and content of the | 25 | | affidavit that are necessary to accomplish the purposes of | 26 | | this Section; and |
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| 1 | | (5) such other information as required by rules
of the | 2 | | Secretary. | 3 | | Section 15-25. Student loan servicer license application | 4 | | and issuance. | 5 | | (a) Applicants for a license shall apply in a form | 6 | | prescribed by the Secretary. Each form shall contain content as | 7 | | set forth by rule, regulation, instruction, or procedure of the | 8 | | Secretary and may be changed or updated as necessary by the | 9 | | Secretary in order to carry out the purposes of this Act. | 10 | | (b) In order to fulfill the purposes of this Act, the | 11 | | Secretary is authorized to establish relationships or | 12 | | contracts with the Nationwide Mortgage Licensing System and | 13 | | Registry or other entities designated by the Nationwide | 14 | | Mortgage Licensing System and Registry to collect and maintain | 15 | | records and process transaction fees or other fees related to | 16 | | licensees or other persons subject to this Act. | 17 | | (c) In connection with an application for licensing, the | 18 | | applicant may be required, at a minimum, to furnish to the | 19 | | Nationwide Mortgage Licensing System and Registry information | 20 | | concerning the applicant's identity, including: | 21 | | (1) fingerprints for submission to the Federal Bureau
| 22 | | of Investigation or any governmental agency or entity | 23 | | authorized to receive such information for a State, | 24 | | national, and international criminal history background | 25 | | check; and |
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| 1 | | (2) personal history and experience in a form
| 2 | | prescribed by the Nationwide Mortgage Licensing System and | 3 | | Registry, including the submission of authorization for | 4 | | the Nationwide Mortgage Licensing System and Registry and | 5 | | the Secretary to obtain: | 6 | | (A) an independent credit report obtained from a
| 7 | | consumer reporting agency described in Section 603(p) | 8 | | of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); | 9 | | and | 10 | | (B) information related to any administrative,
| 11 | | civil, or criminal findings by any governmental | 12 | | jurisdiction. | 13 | | (d) For the purposes of this Section, and in order to | 14 | | reduce the points of contact that the Federal Bureau of | 15 | | Investigation may have to maintain for purposes of subsection | 16 | | (c) of this Section, the Secretary may use the Nationwide | 17 | | Mortgage Licensing System and Registry as a channeling agent | 18 | | for requesting information from and distributing information | 19 | | to the federal Department of Justice or any governmental | 20 | | agency. | 21 | | (e) For the purposes of this Section, and in order to | 22 | | reduce the points of contact that the Secretary may have to | 23 | | maintain for purposes of paragraph (2) of subsection (c) of | 24 | | this Section, the Secretary may use the Nationwide Mortgage | 25 | | Licensing System and Registry as a channeling agent for | 26 | | requesting and distributing information to and from any source |
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| 1 | | as directed by the Secretary. | 2 | | (f) The provisions of this Section shall not apply to a | 3 | | public official serving on the board of directors of a State | 4 | | guaranty agency. | 5 | | Section 15-30. Averments of licensee. Each application for | 6 | | license shall be accompanied by the following averments stating | 7 | | that the applicant: | 8 | | (1) will file with the Secretary or Nationwide
Mortgage | 9 | | Licensing System and Registry, as applicable, when due, any | 10 | | report or reports that it is required to file under any of | 11 | | the provisions of this Act; | 12 | | (2) has not committed a crime against the law of this
| 13 | | State, any other state, or of the United States involving | 14 | | moral turpitude or fraudulent or dishonest dealing, and | 15 | | that no final judgment has been entered against it in a | 16 | | civil action upon grounds of fraud, misrepresentation, or | 17 | | deceit that has not been previously reported to the | 18 | | Secretary; | 19 | | (3) has not engaged in any conduct that would be
cause | 20 | | for denial of a license; | 21 | | (4) has not become insolvent; | 22 | | (5) has not submitted an application for a license
| 23 | | under this Act that contains a material misstatement; | 24 | | (6) has not demonstrated by course of conduct,
| 25 | | negligence or incompetence in performing any act for which |
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| 1 | | it is required to hold a license under this Act; | 2 | | (7) will advise the Secretary in writing or the
| 3 | | Nationwide Mortgage Licensing System and Registry, as | 4 | | applicable, of any changes to the information submitted on | 5 | | the most recent application for license or averments of | 6 | | record within 30 days of the change; the written notice | 7 | | must be signed in the same form as the application for the | 8 | | license being amended; | 9 | | (8) will comply with the provisions of this Act and
| 10 | | with any lawful order, rule, or regulation made or issued | 11 | | under the provisions of this Act; | 12 | | (9) will submit to periodic examination by the
| 13 | | Secretary as required by this Act; and | 14 | | (10) will advise the Secretary in writing of
judgments | 15 | | entered against and bankruptcy petitions by the license | 16 | | applicant within 5 days after the occurrence. | 17 | | A licensee who fails to fulfill the obligations of an | 18 | | averment, fails to comply with averments made, or otherwise | 19 | | violates any of the averments made under this Section shall be | 20 | | subject to the penalties of this Act. | 21 | | Section 15-35. Refusal to issue license. The Secretary | 22 | | shall refuse to issue or renew a license if: | 23 | | (1) it is determined that the applicant is not in
| 24 | | compliance with any provisions of this Act; | 25 | | (2) there is substantial continuity between the
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| 1 | | applicant and any violator of this Act; or | 2 | | (3) the Secretary cannot make the findings
specified in | 3 | | subsection (a) of Section 15-15 of this Act. | 4 | | Section 15-40. License issuance and renewal; fees.
| 5 | | (a) Licenses shall be renewed every year using the common | 6 | | renewal date of the Nationwide Mortgage Licensing System and | 7 | | Registry, as adopted by the Secretary. Properly completed | 8 | | renewal application forms and filing fees may be received by | 9 | | the Secretary 60 days prior to the license expiration date, | 10 | | but, to be deemed timely, the completed renewal application | 11 | | forms and filing fees must be received by the Secretary no | 12 | | later than 30 days prior to the license expiration date. | 13 | | (b) It shall be the responsibility of each licensee to | 14 | | accomplish renewal of its license. Failure by a licensee to | 15 | | submit a properly completed renewal application form and fees | 16 | | in a timely fashion, absent a written extension from the | 17 | | Secretary, shall result in the license becoming inactive. | 18 | | (c) No activity regulated by this Act shall be conducted by | 19 | | the licensee when a license becomes inactive. An inactive | 20 | | license may be reactivated by the Secretary upon payment of the | 21 | | renewal fee and payment of a reactivation fee equal to the | 22 | | renewal fee. | 23 | | (d) A licensee ceasing an activity or activities regulated | 24 | | by this Act and desiring to no longer be licensed shall so | 25 | | inform the Secretary in writing and, at the same time, convey |
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| 1 | | any license issued and all other symbols or indicia of | 2 | | licensure. The licensee shall include a plan for the withdrawal | 3 | | from regulated business, including a timetable for the | 4 | | disposition of the business, and comply with the surrender | 5 | | guidelines or requirements of the Secretary. Upon receipt of | 6 | | such written notice, the Secretary shall post the cancellation | 7 | | or issue a certified statement canceling the license. | 8 | | (e) The expenses of administering this Act, including | 9 | | investigations and examinations provided for in this Act, shall | 10 | | be borne by and assessed against entities regulated by this | 11 | | Act. Subject to the limitations set forth in Section 15-15 of | 12 | | this Act, the Secretary shall establish fees by rule in at | 13 | | least the following categories: | 14 | | (1) investigation of licensees and license applicant | 15 | | fees; | 16 | | (2) examination fees; | 17 | | (3) contingent fees;
and | 18 | | (4) such other categories as may be required to | 19 | | administer this Act. | 20 | | ARTICLE 20. SUPERVISION | 21 | | Section 20-5. Functions; powers; duties. The functions, | 22 | | powers, and duties of the Secretary shall include the | 23 | | following: | 24 | | (1) to issue or refuse to issue any license as
provided |
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| 1 | | by this Act; | 2 | | (2) to revoke or suspend for cause any license issued
| 3 | | under this Act; | 4 | | (3) to keep records of all licenses issued under this
| 5 | | Act; | 6 | | (4) to receive, consider, investigate, and act upon
| 7 | | complaints made by any person in connection with any | 8 | | student loan servicing licensee in this State; | 9 | | (5) to prescribe the forms of and receive: | 10 | | (A) applications for licenses; and | 11 | | (B) all reports and all books and records
required | 12 | | to be made by any licensee under this Act, including | 13 | | annual audited financial statements and annual reports | 14 | | of student loan activity; | 15 | | (6) to adopt rules necessary and
proper for the | 16 | | administration of this Act; | 17 | | (7) to subpoena documents and witnesses and compel
| 18 | | their attendance and production, to administer oaths, and | 19 | | to require the production of any books, papers, or other | 20 | | materials relevant to any inquiry authorized by this Act; | 21 | | (8) to issue orders against any person if the
Secretary | 22 | | has reasonable cause to believe that an unsafe, unsound, or | 23 | | unlawful practice has occurred, is occurring, or is about | 24 | | to occur; if any person has violated, is violating, or is | 25 | | about to violate any law, rule, or written agreement with | 26 | | the Secretary; or for the purpose of administering the |
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| 1 | | provisions of this Act and any rule adopted in accordance | 2 | | with this Act; | 3 | | (9) to address any inquiries to any licensee, or
the | 4 | | officers thereof, in relation to its activities and | 5 | | conditions, or any other matter connected with its affairs, | 6 | | and it shall be the duty of any licensee or person so | 7 | | addressed to promptly reply in writing to those inquiries; | 8 | | the Secretary may also require reports from any licensee at | 9 | | any time the Secretary may deem desirable; | 10 | | (10) to examine the books and records of every
licensee | 11 | | under this Act; | 12 | | (11) to enforce provisions of this Act; | 13 | | (12) to levy fees, fines, and charges for services
| 14 | | performed in administering this Act; the aggregate of all | 15 | | fees collected by the Secretary on and after the effective | 16 | | date of this Act shall be paid promptly after receipt, | 17 | | accompanied by a detailed statement thereof, into the Bank | 18 | | and Trust Company Fund under Section 20-10; the amounts | 19 | | deposited into that Fund shall be used for the ordinary and | 20 | | contingent expenses of the Department; nothing in this Act | 21 | | shall prevent the continuation of the practice of paying | 22 | | expenses involving salaries, retirement, social security, | 23 | | and State-paid insurance of State officers by | 24 | | appropriation from the General Revenue Fund; | 25 | | (13) to appoint examiners, supervisors, experts, and
| 26 | | special assistants as needed to effectively and |
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| 1 | | efficiently administer this Act; | 2 | | (14) to conduct hearings for the purpose of: | 3 | | (A) appeals of orders of the Secretary; | 4 | | (B) suspensions or revocations of licenses, or
| 5 | | fining of licensees; | 6 | | (C) investigating: | 7 | | (i) complaints against licensees; or | 8 | | (ii) annual gross delinquency rates; and | 9 | | (D) carrying out the purposes of this Act; | 10 | | (15) to exercise exclusive visitorial power over a
| 11 | | licensee unless otherwise authorized by this Act or as | 12 | | vested in the courts, or upon prior consultation with the | 13 | | Secretary, a foreign student loan servicing regulator with | 14 | | an appropriate supervisory interest in the parent or | 15 | | affiliate of a licensee; | 16 | | (16) to enter into cooperative agreements with state
| 17 | | regulatory authorities of other states to provide for | 18 | | examination of corporate offices or branches of those | 19 | | states and to accept reports of such examinations; | 20 | | (17) to assign an examiner or examiners to monitor the
| 21 | | affairs of a licensee with whatever frequency the Secretary | 22 | | determines appropriate and to charge the licensee for | 23 | | reasonable and necessary expenses of the Secretary if in | 24 | | the opinion of the Secretary an emergency exists or appears | 25 | | likely to occur; | 26 | | (18) to impose civil penalties of up to $50 per day
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| 1 | | against a licensee for failing to respond to a regulatory | 2 | | request or reporting requirement; and | 3 | | (19) to enter into agreements in connection with the
| 4 | | Nationwide Mortgage Licensing System and Registry. | 5 | | Section 20-10. Bank and Trust Company Fund. All moneys | 6 | | received by the Secretary under this Act in conjunction with | 7 | | the provisions relating to student loan servicers shall be paid | 8 | | into and all expenses incurred by the Secretary under this Act | 9 | | in conjunction with the provisions relating to student loan | 10 | | servicers shall be paid from the Bank and Trust Company Fund. | 11 | | Section 20-15. Examination; prohibited activities. | 12 | | (a) The business affairs of a licensee under this Act shall | 13 | | be examined for compliance with this Act as often as the | 14 | | Secretary deems necessary and proper. The Secretary may adopt | 15 | | rules with respect to the frequency and manner of examination. | 16 | | The Secretary shall appoint a suitable person to perform such | 17 | | examination. The Secretary and his or her appointees may | 18 | | examine the entire books, records, documents, and operations of | 19 | | each licensee and its subsidiary, affiliate, or agent, and may | 20 | | examine any of the licensee's or its subsidiary's, affiliate's, | 21 | | or agent's officers, directors, employees, and agents under | 22 | | oath. | 23 | | (b) The Secretary shall prepare a sufficiently detailed | 24 | | report of each licensee's examination, shall issue a copy of |
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| 1 | | such report to each licensee's principals, officers, or | 2 | | directors, and shall take appropriate steps to ensure | 3 | | correction of violations of this Act. | 4 | | (c) Affiliates of a licensee shall be subject to | 5 | | examination by the Secretary on the same terms as the licensee, | 6 | | but only when reports from or examination of a licensee | 7 | | provides for documented evidence of unlawful activity between a | 8 | | licensee and affiliate benefiting, affecting, or deriving from | 9 | | the activities regulated by this Act. | 10 | | (d) The expenses of any examination of the licensee and | 11 | | affiliates shall be borne by the licensee and assessed by the | 12 | | Secretary as may be established by rule. | 13 | | (e) Upon completion of the examination, the Secretary shall | 14 | | issue a report to the licensee. All confidential supervisory | 15 | | information, including the examination report and the work | 16 | | papers of the report, shall belong to the Secretary's office | 17 | | and may not be disclosed to anyone other than the licensee, law | 18 | | enforcement officials or other regulatory agencies that have an | 19 | | appropriate regulatory interest as determined by the | 20 | | Secretary, or to a party presenting a lawful subpoena to the | 21 | | Department. The Secretary may, through the Attorney General, | 22 | | immediately appeal to the court of jurisdiction the disclosure | 23 | | of such confidential supervisory information and seek a stay of | 24 | | the subpoena pending the outcome of the appeal. Reports | 25 | | required of licensees by the Secretary under this Act and | 26 | | results of examinations performed by the Secretary under this |
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| 1 | | Act shall be the property of only the Secretary, but may be | 2 | | shared with the licensee. Access under this Act to the books | 3 | | and records of each licensee shall be limited to the Secretary | 4 | | and his or her agents as provided in this Act and to the | 5 | | licensee and its authorized agents and designees. No other | 6 | | person shall have access to the books and records of a licensee | 7 | | under this Act. Any person upon whom a demand for production of | 8 | | confidential supervisory information is made, whether by | 9 | | subpoena, order, or other judicial or administrative process, | 10 | | must withhold production of the confidential supervisory | 11 | | information and must notify the Secretary of the demand, at | 12 | | which time the Secretary is authorized to intervene for the | 13 | | purpose of enforcing the limitations of this Section or seeking | 14 | | the withdrawal or termination of the attempt to compel | 15 | | production of the confidential supervisory information. The | 16 | | Secretary may impose any conditions and limitations on the | 17 | | disclosure of confidential supervisory information that are | 18 | | necessary to protect the confidentiality of that information. | 19 | | Except as authorized by the Secretary, no person obtaining | 20 | | access to confidential supervisory information may make a copy | 21 | | of the confidential supervisory information. The Secretary may | 22 | | condition a decision to disclose confidential supervisory | 23 | | information on entry of a protective order by the court or | 24 | | administrative tribunal presiding in the particular case or on | 25 | | a written agreement of confidentiality. In a case in which a | 26 | | protective order or agreement has already been entered between |
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| 1 | | parties other than the Secretary, the Secretary may | 2 | | nevertheless condition approval for release of confidential | 3 | | supervisory information upon the inclusion of additional or | 4 | | amended provisions in the protective order. The Secretary may | 5 | | authorize a party who obtained the records for use in one case | 6 | | to provide them to another party in another case, subject to | 7 | | any conditions that the Secretary may impose on either or both | 8 | | parties. The requester shall promptly notify other parties to a | 9 | | case of the release of confidential supervisory information | 10 | | obtained and, upon entry of a protective order, shall provide | 11 | | copies of confidential supervisory information to the other | 12 | | parties. | 13 | | (f) The Secretary and employees of the Department shall be | 14 | | subject to the restrictions provided in Section 2.5 of the | 15 | | Division of Banking Act, including, without limitation, the | 16 | | restrictions on (i) owning shares of stock or holding any other | 17 | | equity interest in an entity regulated under this Act or in any | 18 | | corporation or company that owns or controls an entity | 19 | | regulated under this Act; (ii) being an officer, director, | 20 | | employee, or agent of an entity regulated under this Act; and | 21 | | (iii) obtaining a loan or accepting a gratuity from an entity | 22 | | regulated under this Act. | 23 | | Section 20-20. Subpoena power of the Secretary. | 24 | | (a) The Secretary shall have the power to issue and to | 25 | | serve subpoenas and subpoenas duces tecum to compel the |
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| 1 | | attendance of witnesses and the production of all books, | 2 | | accounts, records, and other documents and materials relevant | 3 | | to an examination or investigation. The Secretary, or his or | 4 | | her duly authorized representative, shall have power to | 5 | | administer oaths and affirmations to any person. | 6 | | (b) In the event of noncompliance with a subpoena or | 7 | | subpoena duces tecum issued or caused to be issued by the | 8 | | Secretary, the Secretary may, through the Attorney General, | 9 | | petition the circuit court of the county in which the person | 10 | | subpoenaed resides or has its principal place of business for | 11 | | an order requiring the subpoenaed person to appear and testify | 12 | | and to produce such books, accounts, records, and other | 13 | | documents as are specified in the subpoena duces tecum. The | 14 | | court may grant injunctive relief restraining the person from | 15 | | advertising, promoting, soliciting, entering into, offering to | 16 | | enter into, continuing, or completing any student loan | 17 | | servicing transaction. The court may grant other relief, | 18 | | including, but not limited to, the restraint, by injunction or | 19 | | appointment of a receiver, of any transfer, pledge, assignment, | 20 | | or other disposition of the person's assets or any concealment, | 21 | | alteration, destruction, or other disposition of books, | 22 | | accounts, records, or other documents and materials as the | 23 | | court deems appropriate, until the person has fully complied | 24 | | with the subpoena or subpoena duces tecum and the Secretary has | 25 | | completed an investigation or examination. | 26 | | (c) If it appears to the Secretary that the compliance with |
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| 1 | | a subpoena or subpoena duces tecum issued or caused to be | 2 | | issued by the Secretary pursuant to this Section is essential | 3 | | to an investigation or examination, the Secretary, in addition | 4 | | to the other remedies provided for in this Act, may, through | 5 | | the Attorney General, apply for relief to the circuit court of | 6 | | the county in which the subpoenaed person resides or has its | 7 | | principal place of business. The court shall thereupon direct | 8 | | the issuance of an order against the subpoenaed person | 9 | | requiring sufficient bond conditioned on compliance with the | 10 | | subpoena or subpoena duces tecum. The court shall cause to be | 11 | | endorsed on the order a suitable amount of bond or payment | 12 | | pursuant to which the person named in the order shall be freed, | 13 | | having a due regard to the nature of the case. | 14 | | (d) In addition, the Secretary may, through the Attorney | 15 | | General, seek a writ of attachment or an equivalent order from | 16 | | the circuit court having jurisdiction over the person who has | 17 | | refused to obey a subpoena, who has refused to give testimony, | 18 | | or who has refused to produce the matters described in the | 19 | | subpoena duces tecum. | 20 | | Section 20-25. Report required of licensee. In addition to | 21 | | any reports required under this Act, every licensee shall file | 22 | | any other report the Secretary requests. | 23 | | Section 20-30. Suspension; revocation of licenses; fines. | 24 | | (a) Upon written notice to a licensee, the Secretary may |
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| 1 | | suspend or revoke any license issued pursuant to this Act if, | 2 | | in the notice, he or she makes a finding of one or more of the | 3 | | following: | 4 | | (1) that through separate acts or an act or a course of
| 5 | | conduct, the licensee has violated any provisions of this | 6 | | Act, any rule adopted by the Secretary, or any other law, | 7 | | rule, or regulation of this State or the United States; | 8 | | (2) that any fact or condition exists that, if it had
| 9 | | existed at the time of the original application for the | 10 | | license, would have warranted the Secretary in refusing | 11 | | originally to issue the license; or | 12 | | (3) that if a licensee is other than an individual, any
| 13 | | ultimate equitable owner, officer, director, or member of | 14 | | the licensed partnership, association, corporation, or | 15 | | other entity has acted or failed to act in a way that would | 16 | | be cause for suspending or revoking a license to that party | 17 | | as an individual. | 18 | | (b) No license shall be suspended or revoked, except as | 19 | | provided in this Section, nor shall any licensee be fined | 20 | | without notice of his or her right to a hearing as provided in | 21 | | Section 20-65 of this Act. | 22 | | (c) The Secretary, on good cause shown that an emergency | 23 | | exists, may suspend any license for a period not exceeding 180 | 24 | | days, pending investigation. | 25 | | (d) The provisions of subsection (d) of Section 15-40 of | 26 | | this Act shall not affect a licensee's civil or criminal |
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| 1 | | liability for acts committed prior to surrender of a license. | 2 | | (e) No revocation, suspension, or surrender of any license | 3 | | shall impair or affect the obligation of any pre-existing | 4 | | lawful contract between the licensee and any person. | 5 | | (f) Every license issued under this Act shall remain in | 6 | | force and effect until the license expires without renewal, is | 7 | | surrendered, is revoked, or is suspended in accordance with the | 8 | | provisions of this Act, but the Secretary shall have authority | 9 | | to reinstate a suspended license or to issue a new license to a | 10 | | licensee whose license has been revoked if no fact or condition | 11 | | then exists which would have warranted the Secretary in | 12 | | refusing originally to issue that license under this Act. | 13 | | (g) Whenever the Secretary revokes or suspends a license | 14 | | issued pursuant to this Act or fines a licensee under this Act, | 15 | | he or she shall execute a written order to that effect. The | 16 | | Secretary shall post notice of the order on an agency Internet | 17 | | site maintained by the Secretary or on the Nationwide Mortgage | 18 | | Licensing System and Registry and shall serve a copy of the | 19 | | order upon the licensee. Any such order may be reviewed in the | 20 | | manner provided by Section 20-65 of this Act. | 21 | | (h) If the Secretary finds any person in violation of the | 22 | | grounds set forth in subsection (i), he or she may enter an | 23 | | order imposing one or more of the following penalties: | 24 | | (1) revocation of license; | 25 | | (2) suspension of a license subject to reinstatement
| 26 | | upon satisfying all reasonable conditions the Secretary |
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| 1 | | may specify; | 2 | | (3) placement of the licensee or applicant on
probation | 3 | | for a period of time and subject to all reasonable | 4 | | conditions as the Secretary may specify; | 5 | | (4) issuance of a reprimand; | 6 | | (5) imposition of a fine not to exceed $25,000 for
each | 7 | | count of separate offense; except that a fine may be | 8 | | imposed not to exceed $75,000 for each separate count of | 9 | | offense of paragraph (2) of subsection (i) of this Section; | 10 | | or | 11 | | (6) denial of a license. | 12 | | (i) The following acts shall constitute grounds for which | 13 | | the disciplinary actions specified in subsection (h) may be | 14 | | taken: | 15 | | (1) being convicted or found guilty, regardless of
| 16 | | pendency of an appeal, of a crime in any jurisdiction that | 17 | | involves fraud, dishonest dealing, or any other act of | 18 | | moral turpitude; | 19 | | (2) fraud, misrepresentation, deceit, or negligence in
| 20 | | any student loan transaction; | 21 | | (3) a material or intentional misstatement of fact on
| 22 | | an initial or renewal application; | 23 | | (4) insolvency or filing under any provision of the | 24 | | federal
Bankruptcy Code as a debtor; | 25 | | (5) failure to account or deliver to any person any
| 26 | | property, such as any money, fund, deposit, check, draft, |
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| 1 | | or other document or thing of value, that has come into his | 2 | | or her hands and that is not his or her property or that he | 3 | | or she is not in law or equity entitled to retain, under | 4 | | the circumstances and at the time which has been agreed | 5 | | upon or is required by law or, in the absence of a fixed | 6 | | time, upon demand of the person entitled to such accounting | 7 | | and delivery; | 8 | | (6) failure to disburse funds in accordance with
| 9 | | agreements; | 10 | | (7) having a license, or the equivalent, to practice
| 11 | | any profession or occupation revoked, suspended, or | 12 | | otherwise acted against, including the denial of licensure | 13 | | by a licensing authority of this State or another state, | 14 | | territory, or country for fraud, dishonest dealing, or any | 15 | | other act of moral turpitude; | 16 | | (8) failure to comply with an order of the
Secretary or | 17 | | rule made or issued under the provisions of this Act; | 18 | | (9) engaging in activities regulated by this Act
| 19 | | without a current, active license unless specifically | 20 | | exempted by this Act; | 21 | | (10) failure to pay in a timely manner any fee,
charge, | 22 | | or fine under this Act; | 23 | | (11) failure to maintain, preserve, and keep
available | 24 | | for examination all books, accounts, or other documents | 25 | | required by the provisions of this Act and the rules of the | 26 | | Secretary; |
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| 1 | | (12) refusing, obstructing, evading, or unreasonably
| 2 | | delaying an investigation, information request, or | 3 | | examination authorized under this Act, or refusing, | 4 | | obstructing, evading, or unreasonably delaying compliance | 5 | | with the Secretary's subpoena or subpoena duces tecum; and | 6 | | (13) failure to comply with or a violation of any
| 7 | | provision of this Act. | 8 | | (j) A licensee shall be subject to the disciplinary actions | 9 | | specified in this Act for violations of subsection (i) by any | 10 | | officer, director, shareholder, joint venture, partner, | 11 | | ultimate equitable owner, or employee of the licensee. | 12 | | (k) A licensee shall be subject to suspension or revocation | 13 | | for unauthorized employee actions only if there is a pattern of | 14 | | repeated violations by employees or the licensee has knowledge | 15 | | of the violations or there is substantial harm to a consumer. | 16 | | (l) Procedures for surrender of a license include the | 17 | | following: | 18 | | (1) The Secretary may, after 10 days' notice by
| 19 | | certified mail to the licensee at the address set forth on | 20 | | the license, stating the contemplated action and in general | 21 | | the grounds for the contemplated action and the date, time, | 22 | | and place of a hearing thereon, and after providing the | 23 | | licensee with a reasonable opportunity to be heard prior to | 24 | | such action, fine such licensee an amount not exceeding | 25 | | $25,000 per violation, or revoke or suspend any license | 26 | | issued under this Act if he or she finds that: |
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| 1 | | (i) the licensee has failed to comply with any
| 2 | | provision of this Act or any order, decision, finding, | 3 | | rule, regulation, or direction of the Secretary | 4 | | lawfully made pursuant to the authority of this Act; or | 5 | | (ii) any fact or condition exists that, if it
had | 6 | | existed at the time of the original application for the | 7 | | license, clearly would have warranted the Secretary in | 8 | | refusing to issue the license. | 9 | | (2) Any licensee may submit an application to surrender
| 10 | | a license, but, upon the Secretary approving the surrender, | 11 | | it shall not affect the licensee's civil or criminal | 12 | | liability for acts committed prior to surrender or entitle | 13 | | the licensee to a return of any part of the license fee. | 14 | | Section 20-35. Investigation of complaints. The Secretary | 15 | | shall at all times maintain staff and facilities adequate to | 16 | | receive, record, and investigate complaints and inquiries made | 17 | | by any person concerning this Act and any licensees under this | 18 | | Act. Each licensee shall open its books, records, documents, | 19 | | and offices wherever situated to the Secretary or his or her | 20 | | appointees as needed to facilitate such investigations. | 21 | | Section 20-40. Additional investigation and examination | 22 | | authority. In addition to any authority allowed under this Act, | 23 | | the Secretary shall have the authority to conduct | 24 | | investigations and examinations as follows: |
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| 1 | | (1) For purposes of initial licensing, license | 2 | | renewal, license suspension, license conditioning, license | 3 | | revocation or termination, or general or specific inquiry | 4 | | or investigation to determine compliance with this Act, the | 5 | | Secretary shall have the authority to access, receive, and | 6 | | use any books, accounts, records, files, documents, | 7 | | information, or evidence, including, but not limited to, | 8 | | the following: | 9 | | (A) criminal, civil, and administrative history
| 10 | | information, including nonconviction data as specified | 11 | | in the Criminal Code of 2012; | 12 | | (B) personal history and experience information,
| 13 | | including independent credit reports obtained from a | 14 | | consumer reporting agency described in Section 603(p) | 15 | | of the federal Fair Credit Reporting Act; and | 16 | | (C) any other documents, information, or evidence
| 17 | | the Secretary deems relevant to the inquiry or | 18 | | investigation, regardless of the location, possession, | 19 | | control, or custody of the documents, information, or | 20 | | evidence. | 21 | | (2) For the purposes of investigating violations or | 22 | | complaints arising under this Act or for the purposes of | 23 | | examination, the Secretary may review, investigate, or | 24 | | examine any licensee, individual, or person subject to this | 25 | | Act as often as necessary in order to carry out the | 26 | | purposes of this Act. The Secretary may direct, subpoena, |
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| 1 | | or order the attendance of and examine under oath all | 2 | | persons whose testimony may be required about the loans or | 3 | | the business or subject matter of any such examination or | 4 | | investigation, and may direct, subpoena, or order the | 5 | | person to produce books, accounts, records, files, and any | 6 | | other documents the Secretary deems relevant to the | 7 | | inquiry. | 8 | | (3) Each licensee, individual, or person subject to | 9 | | this Act shall make available to the Secretary upon request | 10 | | the books and records relating to the operations of the | 11 | | licensee, individual, or person subject to this Act. The | 12 | | Secretary shall have access to those books and records and | 13 | | interview the officers, principals, employees, independent | 14 | | contractors, agents, and customers of the licensee, | 15 | | individual, or person subject to this Act concerning their | 16 | | business. | 17 | | (4) Each licensee, individual, or person subject to | 18 | | this Act shall make or compile reports or prepare other | 19 | | information as directed by the Secretary in order to carry | 20 | | out the purposes of this Section, including, but not | 21 | | limited to: | 22 | | (A) accounting compilations; | 23 | | (B) information lists and data concerning loan
| 24 | | transactions in a format prescribed by the Secretary; | 25 | | or | 26 | | (C) other information deemed necessary to carry |
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| 1 | | out
the purposes of this Section. | 2 | | (5) In making any examination or investigation | 3 | | authorized by this Act, the Secretary may control access to | 4 | | any documents and records of the licensee or person under | 5 | | examination or investigation. The Secretary may take | 6 | | possession of the documents and records or place a person | 7 | | in exclusive charge of the documents and records in the | 8 | | place where they are usually kept. During the period of | 9 | | control, no person shall remove or attempt to remove any of | 10 | | the documents or records, except pursuant to a court order | 11 | | or with the consent of the Secretary. Unless the Secretary | 12 | | has reasonable grounds to believe the documents or records | 13 | | of the licensee have been, or are at risk of being altered | 14 | | or destroyed for purposes of concealing a violation of this | 15 | | Act, the licensee or owner of the documents and records | 16 | | shall have access to the documents or records as necessary | 17 | | to conduct its ordinary business affairs. | 18 | | (6) In order to carry out the purposes of this Section, | 19 | | the Secretary may: | 20 | | (A) retain attorneys, accountants, or other
| 21 | | professionals and specialists as examiners, auditors, | 22 | | or investigators to conduct or assist in the conduct of | 23 | | examinations or investigations; | 24 | | (B) enter into agreements or relationships with
| 25 | | other government officials or regulatory associations | 26 | | in order to improve efficiencies and reduce regulatory |
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| 1 | | burden by sharing resources, standardized or uniform | 2 | | methods or procedures, and documents, records, | 3 | | information, or evidence obtained under this Section; | 4 | | (C) use, hire, contract, or employ public or
| 5 | | privately available analytical systems, methods, or | 6 | | software to examine or investigate the licensee, | 7 | | individual, or person subject to this Act; | 8 | | (D) accept and rely on examination or | 9 | | investigation
reports made by other government | 10 | | officials, within or outside this State; or | 11 | | (E) accept audit reports made by an independent
| 12 | | certified public accountant for the licensee, | 13 | | individual, or person subject to this Act in the course | 14 | | of that part of the examination covering the same | 15 | | general subject matter as the audit and may incorporate | 16 | | the audit report in the report of the examination, | 17 | | report of investigation, or other writing of the | 18 | | Secretary. | 19 | | (7) The authority of this Section shall remain in | 20 | | effect, whether such a licensee, individual, or person | 21 | | subject to this Act acts or claims to act under any | 22 | | licensing or registration law of this State or claims to | 23 | | act without the authority. | 24 | | (8) No licensee, individual, or person subject to | 25 | | investigation or examination under this Section may | 26 | | knowingly withhold, abstract, remove, mutilate, destroy, |
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| 1 | | or secrete any books, records, computer records, or other | 2 | | information. | 3 | | Section 20-45. Confidential information. In hearings | 4 | | conducted under this Act, information presented into evidence | 5 | | that was acquired by the licensee when serving any individual | 6 | | in connection with a student loan, including all financial | 7 | | information of the individual, shall be deemed strictly | 8 | | confidential and shall be made available only as part of the | 9 | | record of a hearing under this Act or otherwise (i) when the | 10 | | record is required, in its entirety, for purposes of judicial | 11 | | review or (ii) upon the express written consent of the | 12 | | individual served, or in the case of his or her death or | 13 | | disability, the consent of his or her personal representative. | 14 | | Section 20-50. Confidentiality. | 15 | | (a) In order to promote more effective regulation and | 16 | | reduce regulatory burden through supervisory information | 17 | | sharing, except as otherwise provided in federal Public Law | 18 | | 110-289, Section 1512, the requirements under any federal law | 19 | | or State law regarding the privacy or confidentiality of any | 20 | | information or material provided to the Nationwide Mortgage | 21 | | Licensing System and Registry, and any privilege arising under | 22 | | federal or State law, including the rules of any federal or | 23 | | State court, with respect to such information or material, | 24 | | shall continue to apply to information or material after the |
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| 1 | | information or material has been disclosed to the Nationwide | 2 | | Mortgage Licensing System and Registry. The information and | 3 | | material may be shared with all State and federal regulatory | 4 | | officials with student loan industry oversight authority | 5 | | without the loss of privilege or the loss of confidentiality | 6 | | protections provided by federal law or State law. | 7 | | (b) In order to promote more effective regulation and | 8 | | reduce regulatory burden through supervisory information | 9 | | sharing, the Secretary is authorized to enter agreements or | 10 | | sharing arrangements with other governmental agencies, the | 11 | | Conference of State Bank Supervisors or other associations | 12 | | representing governmental agencies as established by rule, | 13 | | regulation, or order of the Secretary. The sharing of | 14 | | confidential supervisory information or any information or | 15 | | material described in subsection (a) of this Section pursuant | 16 | | to an agreement or sharing arrangement shall not result in the | 17 | | loss of privilege or the loss of confidentiality protections | 18 | | provided by federal law or State law. | 19 | | (c) In order to promote more effective regulation and | 20 | | reduce regulatory burden through supervisory information | 21 | | sharing, information or material that is subject to a privilege | 22 | | or confidentiality under subsection (a) of this Section shall | 23 | | not be subject to the following: | 24 | | (1) disclosure under any State law governing the
| 25 | | disclosure to the public of information held by an officer | 26 | | or an agency of the State; or |
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| 1 | | (2) subpoena or discovery, or admission into
evidence, | 2 | | in any private civil action or administrative process, | 3 | | unless with respect to any privilege held by the Nationwide | 4 | | Mortgage Licensing System and Registry with respect to the | 5 | | information or material, the person to whom such | 6 | | information or material pertains waives, in whole or in | 7 | | part, in the discretion of that person, that privilege. | 8 | | (d) In order to promote more effective regulation and | 9 | | reduce regulatory burden through supervisory information | 10 | | sharing, any other law relating to the disclosure of | 11 | | confidential supervisory information or any information or | 12 | | material described in subsection (a) of this Section that is | 13 | | inconsistent with subsection (a) of this Section shall be | 14 | | superseded by the requirements of this Section to the extent | 15 | | the other law provides less confidentiality or a weaker | 16 | | privilege. | 17 | | Section 20-55. Reports of violations. Any person licensed | 18 | | under this Act or any other person may report to the Secretary | 19 | | any information to show that a person subject to this Act is or | 20 | | may be in violation of this Act. A licensee who files a report | 21 | | with the Department that another licensee is engaged in one or | 22 | | more violations pursuant to this Act shall not be the subject | 23 | | of disciplinary action by the Department, unless the Department | 24 | | determines, by a preponderance of the evidence available to the | 25 | | Department, that the reporting person knowingly and willingly |
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| 1 | | participated in the violation that was reported. | 2 | | Section 20-60. Rules and regulations of the Secretary. | 3 | | (a) In addition to such powers as may be prescribed by this | 4 | | Act, the Secretary is hereby authorized and empowered to adopt | 5 | | rules consistent with the purposes of this Act, including, but | 6 | | not limited to: | 7 | | (1) rules in connection with the
activities of | 8 | | licensees as may be necessary and appropriate for the | 9 | | protection of consumers in this State; | 10 | | (2) rules as may be necessary
and appropriate to define | 11 | | improper or fraudulent business practices in connection | 12 | | with the activities of licensees in servicing student | 13 | | loans; | 14 | | (3) rules that define the
terms used in this Act and as | 15 | | may be necessary and appropriate to interpret and implement | 16 | | the provisions of this Act; and | 17 | | (4) rules as may be necessary
for the enforcement of | 18 | | this Act. | 19 | | (b) The Secretary is hereby authorized and empowered to | 20 | | make specific rulings, demands, and findings that he or she | 21 | | deems necessary for the proper conduct of the student loan | 22 | | servicing industry. | 23 | | (c) A person or entity may make a written application to | 24 | | the Department for a written interpretation of this Act. The | 25 | | Department may then, in its sole discretion, choose to issue a |
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| 1 | | written interpretation. To be valid, a written interpretation | 2 | | must be signed by the Secretary, or his or her designee, and | 3 | | the Department's General Counsel. A written interpretation | 4 | | expires 2 years after the date that it was issued. | 5 | | (d) No provision in this Act that imposes liability or | 6 | | establishes violations shall apply to any act taken by a person | 7 | | or entity in conformity with a written interpretation of this | 8 | | Act that is in effect at the time the act is taken, | 9 | | notwithstanding whether the written interpretation is later | 10 | | amended, rescinded, or determined by judicial or other | 11 | | authority to be invalid for any reason.
| 12 | | Section 20-65. Appeal and review. | 13 | | (a) Any person or entity affected by a decision of the | 14 | | Secretary under any provision of this Act may obtain review of | 15 | | that decision within the Department. | 16 | | (b) The Secretary may, in accordance with the Illinois | 17 | | Administrative Procedure Act, adopt rules to provide for review | 18 | | within the Department of his or her decisions affecting the | 19 | | rights of entities under this Act. The review shall provide | 20 | | for, at a minimum: | 21 | | (1) appointment of a hearing officer other than a | 22 | | regular employee of the Department; | 23 | | (2) appropriate procedural rules, specific deadlines | 24 | | for filings, and standards of evidence and of proof; and | 25 | | (3) provision for apportioning costs among parties to |
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| 1 | | the appeal. | 2 | | (c) All final agency determinations of appeals to decisions | 3 | | of the Secretary may be reviewed in accordance with and under | 4 | | the provisions of the Administrative Review Law. Appeals from | 5 | | all final orders and judgments entered by a court in review of | 6 | | any final administrative decision of the Secretary or of any | 7 | | final agency review of a decision of the Secretary may be taken | 8 | | as in other civil cases.
| 9 | | Section 20-70. Violations of this Act; Secretary's orders. | 10 | | If the Secretary finds, as the result of examination, | 11 | | investigation, or review of reports submitted by a licensee, | 12 | | that the business and affairs of a licensee are not being | 13 | | conducted in accordance with this Act, the Secretary shall | 14 | | notify the licensee of the correction necessary. If a licensee | 15 | | fails to correct such violations, the Secretary shall issue an | 16 | | order requiring immediate correction and compliance with this | 17 | | Act, specifying a reasonable date for performance. | 18 | | The Secretary may adopt rules to provide for an orderly and | 19 | | timely appeal of all orders within the Department. The rules | 20 | | may include provision for assessment of fees and costs.
| 21 | | Section 20-75. Collection of compensation. Unless exempt | 22 | | from licensure under this Act, no person engaged in or offering | 23 | | to engage in any act or service for which a license under this | 24 | | Act is required may bring or maintain any action in any court |
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| 1 | | of this State to collect compensation for the performance of | 2 | | the licensable services without alleging and proving that he or | 3 | | she was the holder of a valid student loan servicing license | 4 | | under this Act at all times during the performance of those | 5 | | services. | 6 | | Section 20-80. Licensure fees. | 7 | | (a) The fees for licensure shall be a $1,000 application | 8 | | fee and an additional $800 fee for investigation performed in | 9 | | conjunction with Section 15-5. The fees are nonrefundable. | 10 | | (b) The fee for an application renewal shall be $1,000. The | 11 | | fee is nonrefundable. | 12 | | Section 20-85. Injunction. The Secretary, through the | 13 | | Attorney General, may maintain an action in the name of the | 14 | | people of the State of Illinois and may apply for an injunction | 15 | | in the circuit court to enjoin a person from engaging in | 16 | | unlicensed student loan servicing activity. | 17 | | ARTICLE 25. CONSUMER FRAUD AND DECEPTIVE BUSINESS | 18 | | PRACTICES ACT | 19 | | Section 25-5. Enforcement; Consumer Fraud and Deceptive | 20 | | Business Practices Act. The Attorney General may enforce a | 21 | | violation of Article 5 of this Act as an unlawful practice | 22 | | under the Consumer Fraud and Deceptive Business Practices Act. |
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| 1 | | ARTICLE 99. SEVERABILITY; EFFECTIVE DATE | 2 | | Section 99-1. Severability. The provisions of this Act are | 3 | | severable under Section 1.31 of the Statute on Statutes.
| 4 | | Section 99-99. Effective date. This Act takes effect | 5 | | December 31, 2018.".
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