SB1351sam001 100TH GENERAL ASSEMBLY

Sen. Daniel Biss

Filed: 3/10/2017

10000SB1351sam001 LRB100 10505 SMS 23166 a

AMENDMENT TO SENATE BILL 1351

AMENDMENT NO. ______. Amend Senate Bill 1351 by replacing everything after the enacting clause with the following:

"Article 1. General Provisions

Section 1-1. Short title. This Act may be cited as the Student Loan Servicing Rights Act.

Section 1-5. Definitions. As used in this Act:

"Applicant" means a person applying for a license pursuant to this Act.

"Borrower" or "student loan borrower" means a person who has received or agreed to pay a student loan for his or her own educational expenses.

"Cosigner" means a person who has agreed to share responsibility for repaying a student loan with a borrower.

"Federal loan borrower eligible for referral to a repayment specialist" means a borrower who possesses any of the following characteristics:

(1) requests information related to options to reduce or suspend his or her monthly payment;

(2) indicates that he or she is experiencing or anticipates experiencing financial hardship, distress, or difficulty making his or her payments;

(3) has missed 2 consecutive monthly payments;

(4) is at least 75 days delinquent;

(5) is enrolled in a discretionary forbearance for more than 9 of the previous 12 months;

(6) has rehabilitated or consolidated one or more loans out of default within the past 12 months; or

(7) has not completed a course of study, as reflected in the servicer's records, or the borrower identifies himself or herself as not having completed a program of study.

"Federal education loan" means any loan made, guaranteed, or insured under Title IV of the federal Higher Education Act of 1965.

"Income-driven payment plan certification" means the documentation related to a federal student loan borrower's income or financial status the borrower must submit to renew an income-driven repayment plan.

"Income-driven repayment options" includes the Income-Contingent Repayment Plan, the Income-Based Repayment Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn Plan, the Revised Pay As you Earn Plan, and any other federal student loan repayment plan that is calculated based on a borrower's income.

"Licensee" means a person licensed pursuant to this Act.

"Other repayment plans" means the Standard Repayment Plan, the Graduated Repayment Plan, the Extended Repayment Plan, or any other federal student loan repayment plan not based on a borrower's income.

"Private education loan" has the meaning given to that term in 15 U.S.C. 1650.

"Private loan borrower eligible for referral to a repayment specialist" means a borrower who possesses any of the following characteristics:

(1) requests information related to options to reduce or suspend his or her monthly payments; or

(2) indicates that he or she is experiencing or anticipates experiencing financial hardship, distress, or difficulty making his or her payments.

"Request for assistance" means all inquiries, complaints, account disputes, and requests for documentation a servicer receives from borrowers or cosigners.

"Requester" means any borrower or cosigner that submits a request for assistance.

"Secretary" means the Secretary of Financial and Professional Regulation.

"Servicing" means any of the following activities related to a student loan of a borrower or cosigner:

(1) receiving any scheduled periodic payments from a borrower or cosigner or any notification that a borrower or cosigner made a scheduled periodic payment;

(2) applying payments to the borrower's account pursuant to the terms of the student loan or the contract governing the servicing;

(3) during a period when no payment is required on a student loan, performing both of the following:

(A) maintaining account records for the student loan; and

(B) communicating with the borrower or cosigner regarding the student loan on behalf of the owner of the student loan promissory note; or

(4) interacting with a borrower or cosigner related to that borrower's student loan with the goal of helping the borrower avoid default on his or her student loan or facilitating the activities described in paragraph (1) or (2).

"Student loan" or "loan" means any federal education loan, private education loan, or other loan primarily for use to finance a postsecondary education and costs of attendance at a postsecondary institution, including, but not limited to, tuition, fees, books and supplies, room and board, transportation, and miscellaneous personal expenses. "Student loan" includes a loan made to refinance a student loan.

"Student loan servicer" or "servicer" means any person engaged in the business of servicing student loans.

Article 5. Student Loan Bill of Rights

Section 5-5. General provisions.

(a) A servicer shall not engage in any unfair or deceptive practice toward any borrower or cosigner or misrepresent or omit any material information in connection with the servicing of a student loan, including, but not limited to, misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the student loan agreement, or the borrower's or cosigner's obligations under the student loan or the terms of any repayment plans.

(b) A servicer shall not misapply payments made by a borrower to the outstanding balance of a student loan.

(c) A servicer shall oversee third parties, including subservicers, debt collectors, independent contractors, subsidiaries, affiliates, and other agents, to ensure that those companies comply with this Article 5.

Section 5-10. Payment processing.

(a) A servicer shall credit borrower and cosigner payments promptly and accurately.

(b) A servicer shall provide borrowers and cosigners no less than 45 days' notice if the servicer changes the address to which the borrower or cosigner needs to send payments.

(c) A servicer shall not charge a penalty to a borrower or cosigner if a student loan payment is received at an address used for payments for a period of 90 days after the change in address.

(d) A servicer shall not misrepresent the delinquent amount of the loan on any call with a borrower or cosigner.

(e) A servicer shall allow a borrower or cosigner to specify instructions as to how an overpayment should be applied to the balance of the loan as consistent with the promissory note.

Section 5-15. Fees.

(a) A servicer may only charge late fees that are reasonable and proportional to the cost it incurs related to a late payment.

(b) A servicer shall not charge a borrower or cosigner any fee to modify, defer, forbear, renew, extend, or amend the borrower's or cosigner's loan.

Section 5-20. Billing statements.

(a) In any student loan billing statement, a servicer shall not misrepresent the:

(1) amount due;

(2) fees assessed;

(3) total amount due for each loan;

(4) payment due date;

(5) date to avoid late fees;

(6) accrued interest during the billing cycle;

(7) default payment methodology;

(8) means to provide instructions for a payment; or

(9) procedure regarding escalated requests for assistance.

(b) A servicer shall not misrepresent information regarding the $0 bill and advancement of the due date on any billing statement that reflects $0 owed.

Section 5-25. Payment histories. A servicer shall provide a written payment history to a borrower or cosigner upon request at no cost within 21 calendar days after receiving the request.

Section 5-30. Specialized assistance for student loan borrowers.

(a) A servicer shall specially designate servicing and collections personnel deemed repayment specialists who have received enhanced training related to repayment options.

(b) A servicer shall refrain from presenting forbearance as the sole or first repayment option to a student loan borrower struggling with repayment unless the servicer has determined that based on the borrower's financial status a short-term forbearance is appropriate.

(c) All inbound and outbound calls from federal loan borrowers eligible for referral to a repayment specialist and private loan borrowers eligible for referral to a repayment specialist shall be routed to a repayment specialist.

(d) During each inbound or outbound communication with an eligible federal loan borrower, a repayment specialist shall first inform a federal loan borrower eligible for referral to a repayment specialist that federal income-driven repayment plans that can reduce the borrower's monthly payment may be available, discuss such plans, and assist the borrower in determining whether a particular repayment plan may be appropriate for the borrower.

(e) A repayment specialist shall assess the long-term and short-term financial situation and needs of a federal loan borrower eligible for referral to a repayment specialist and consider any available specific information from the borrower as necessary to assist the borrower in determining whether a particular income-driven repayment option may be available to the borrower.

(f) In each discussion with a federal loan borrower eligible for referral to a repayment specialist, a repayment specialist shall present and explain the following options, as appropriate:

(1) total and permanent disability discharge, public service loan forgiveness, closed school discharge, and defenses to repayment;

(2) other repayment plans;

(3) deferment; and

(4) forbearance.

(g) A repayment specialist shall assess the long-term and short-term financial situation and needs of a private loan borrower eligible for referral to a repayment specialist in determining whether any private loan repayment options may be appropriate for the borrower.

(h) A servicer shall present and explain all private loan repayment options, including alternative repayment arrangements applicable to private student loan borrowers.

(i) A servicer shall be prohibited from implementing any compensation plan that has the intended or actual effect of incentivizing any repayment specialist to violate this Act or any other measure that encourages undue haste or lack of quality.

(j) The requirements of this Section shall not apply if a repayment specialist has already conversed with a borrower consistent with the requirements of this Section.

Section 5-35. Disclosures related to discharge and cancellation. If a servicer is aware that a student loan borrower attended a school the United States Department of Education has made findings supporting a defense to repayment claim or closed school discharge, or that a borrower may be eligible to have his or her loans forgiven under a total and permanent disability discharge, the servicer's personnel shall disclose information related to the Department of Education's procedure for asserting a defense to repayment claim, closed school discharge, or submitting an application for a total and permanent disability discharge.

Section 5-40. Income-driven repayment plan certifications. A servicer shall disclose the date that a borrower's income-driven payment plan certification will expire and the consequences to the borrower for failing to recertify by the date, including the new repayment amount.

Section 5-45. Information to be provided to private education loan borrowers.

(a) A servicer shall provide on its website a description of any alternative repayment plan offered by the servicer for private education loans.

(b) A servicer shall establish policies and procedures and implement them consistently in order to facilitate evaluation of private student loan alternative repayment arrangement requests, including providing accurate information regarding any private student loan alternative repayment arrangements that may be available to the borrower through the promissory note or that may have been marketed to the borrower through marketing materials.

Private student loan alternative repayment arrangements shall consider the affordability of repayment plans for distressed borrowers as well as investor, guarantor, and insurer guidelines, and previous outcome and performance information.

(c) If a servicer offers private student loan repayment arrangements, the servicer shall consistently present and offer those arrangements to borrowers with similar financial circumstances.

Section 5-50. Cosigner release. A servicer shall provide information on billing statements and its website concerning the availability and criteria for a cosigner release.

Section 5-55. Payoff statements. A servicer shall indicate on its billing statements and its website that a borrower may request a payoff statement. The servicer shall provide the payoff statement within 10 days, including information the requester needs to pay off the loan. If a payoff is made, the servicer must send a paid-in-full notice within 30 days.

Section 5-60. Requirements related to the transfer of servicing.

(a) When acting as the transferor servicer, a servicer shall provide to each borrower subject to the transfer a written notice no less than 15 calendar days before the effective date of the transfer. The transferee servicer and transferor servicer may provide a single notice, in which case the notice shall be provided no less than 15 calendar days before the effective date of the transfer. The notice by the transferor servicer or, if applicable, the combined notice of transfer shall contain the following information:

(1) the effective date of the transfer of servicing;

(2) the name, address, and toll-free telephone number for the transferor servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;

(3) the name, address, and toll-free telephone number for the transferee servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;

(4) the date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments; the dates shall either be the same or consecutive days;

(5) a statement that the transfer of servicing does not affect any term or condition of the loan other than terms directly related to the servicing of a loan;

(6) information on whether the borrower's authorization for recurring electronic fund transfers, if applicable, will be transferred to the transferee servicer; if any such recurring electronic funds transfers cannot be transferred, the transferee servicer shall provide information explaining how the borrower may establish new recurring electronic funds transfers with the transferee servicer; and

(7) a statement of the current loan balance, including the current unpaid amount of principal, interest, and fees.

(b) When acting as the transferee servicer, a servicer shall provide to each borrower subject to the transfer a written notice no more than 15 calendar days after the effective date of the transfer. The transferee servicer and transferor servicer may provide a combined notice of transfer, in which case the notice shall be provided no less than 15 days before the effective date of the transfer. The notice by the transferee servicer or, if applicable, the combined notice of transfer shall contain the following information:

(1) the effective date of the transfer of servicing;

(2) the name, address, and toll-free telephone number for the transferee servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;

(3) the date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments; the dates shall either be the same or consecutive days;

(4) a statement that the transfer of servicing does not affect any term or condition of the student loan other than terms directly related to the servicing of a loan;

(5) information on whether the borrower's authorization for recurring electronic fund transfers, if applicable, will be transferred to the transferee servicer; if any such recurring electronic funds transfers cannot be transferred, the transferee servicer shall provide information explaining how the borrower may establish new recurring electronic funds transfers with the transferee servicer; and

(6) a statement of the current loan balance, including the current unpaid amount of principal, interest, and fees.

(c) During the 60 calendar day period beginning on the effective date of transfer of the servicing of a loan, a payment timely made to the transferor servicer may not be treated as late for any purpose by the transferee servicer, including the assessment of late fees, accrual of additional interest, and furnishing negative credit information.

(d) To the extent practicable, for at least 120 calendar days beginning on the effective date of transfer of servicing of a loan, when acting as the transferor servicer, a servicer shall promptly transfer payments received to the transferee servicer for application to the borrower's loan account.

(e) Unless a borrower's authorizations for recurring electronic fund transfers are automatically transferred to the transferee servicer, when acting as a transferee servicer, the servicer shall make available to a borrower whose loan servicing is transferred an online process through which borrowers may make a new authorization for recurring electronic fund transfers. A servicer shall also provide a process through which the borrower may make a new authorization for recurring electronic funds transfers by phone or through written approval.

Section 5-65. Requests for assistance, account dispute resolution, and appeals.

(a) A servicer shall implement reasonable policies and procedures for accepting, processing, investigating, and responding to requests for assistance in a timely and effective manner, including, but not limited to, the following requirements:

(1) A servicer shall provide readily accessible methods for consumers to submit a request for assistance to the servicer, including such methods as phone, email, and U.S. mail.

(2) A servicer shall post on its website and disclose on its billing statements:

(A) the toll-free telephone number, email address, and mailing address for consumers to submit requests for assistance to the servicer; and

(B) the procedures for a requester to send a written communication to the servicer regarding any request for assistance.

(3) For any request for assistance that includes a request for documentation or information, where a response cannot be immediately provided, a servicer shall provide the requested documentation or information to the requester within 14 calendar days of the request; if a servicer determines in good faith that it is unable to provide the documentation or information within 14 calendar days, then, promptly after making the determination, the servicer shall notify the requester of the expected response period, which must be reasonable for the request for assistance.

(b) A servicer shall implement a process by which a requester can escalate any request for assistance. The process shall allow a requester who has made a request for assistance on the phone and who receives a response during the call to obtain immediate review of the response by an employee of the servicer at a higher supervisory level.

(c) The following requirements shall apply when a requester submits a written or oral request for assistance that contains an account dispute to a servicer:

(1) Within 14 calendar days of its receipt of the written communication or oral request for further escalation, a servicer shall attempt to make contact, including providing the requester with name and contact information of the representative handling the account dispute, by phone or in writing, to the requester and document the attempt in the borrower's account.

(2) A servicer shall complete the following actions within 30 calendar days after its receipt of the written communication or oral request for further escalation, subject to paragraph (3) of this subsection (c):

(A) conduct a thorough investigation of the account dispute;

(B) make all appropriate corrections to the account of the requester, including crediting any late fees assessed and derogatory credit furnishing as the result of any error, and, if any corrections are made, sending the requester a written notification that includes the following information:

(i) an explanation of the correction or corrections to the requester's account that have been made; and

(ii) the toll-free telephone number, email address, and mailing address of the servicer's personnel knowledgeable about the investigation and resolution of the account dispute.

(3) If a servicer determines in good faith that it cannot complete a thorough investigation of the account dispute within 30 calendar days after receiving the written communication or oral request for further escalation regarding the account dispute, then, promptly after making such determination, the servicer shall notify the requester of the expected resolution time period, which must be reasonable for the account dispute. A servicer must complete the actions listed in the investigation and resolution of the account dispute within this time period.

(4) If a servicer determines as a result of its investigation that the requested changes to a requester's dispute will not be made, the servicer shall provide the requester with a written notification that includes the following information:

(A) a description of its determination and an explanation of the reasons for that determination;

(B) the toll-free telephone number, email address, and mailing address of the servicer's personnel knowledgeable about the investigation and resolution of the account dispute;

(C) instructions about how the requester can appeal the servicer's determination in accordance with paragraph (5) of this subsection (c); and

(D) information regarding the method by which a borrower may request copies of documents a servicer relied on to make a determination that no changes to a requester's account will be made.

(5) After the requester receives a determination regarding an account dispute in accordance with paragraph (4) of this subsection (c), the servicer shall allow a process by which the requester can appeal, in writing, the determination. The appeals process shall include:

(A) a written acknowledgment notifying the requester that the servicer has commenced the appeals process; the acknowledgment shall be sent within 14 calendar days after receiving a written request for appeal from the requester;

(B) an independent reassessment of the servicer's determination regarding the account dispute, performed by another employee of the servicer at an equal or higher supervisory level than the employee or employees involved in the initial account dispute determination;

(C) investigation and resolution of appeals within 30 calendar days after the servicer's commencement of the appeals process; and

(D) notification sent to the requester, in writing, documenting the outcome of the appeal, including any reason for denial.

(d) While a requester has a pending account dispute, including any applicable appeal, a servicer shall take reasonable steps to:

(1) prevent negative credit reporting with respect to the borrower's or cosigner's account while the dispute is under review; and

(2) suspend all collection activities on the account while the account dispute is being researched or resolved, if the account dispute is related to the delinquency.

Article 10. Student Loan Ombudsman

Section 10-5. Student Loan Ombudsman.

(a) The position of Student Loan Ombudsman is created within the Office of the Attorney General to provide timely assistance to student loan borrowers.

(b) The Student Loan Ombudsman, in consultation with the Secretary, shall:

(1) receive, review, and attempt to resolve any complaints from student loan borrowers, including, but not limited to, attempts to resolve complaints in collaboration with institutions of higher education, student loan servicers, and any other participants in student loan lending;

(2) compile and analyze data on student loan borrower complaints;

(3) assist student loan borrowers to understand their rights and responsibilities under the terms of student education loans;

(4) provide information to the public, agencies, legislators, and others regarding the problems and concerns of student loan borrowers and make recommendations for resolving those problems and concerns;

(5) analyze and monitor the development and implementation of federal, State, and local laws, regulations, and policies relating to student loan borrowers and recommend any changes the Student Loan Ombudsman deems necessary;

(6) review the complete student education loan history for any student loan borrower who has provided written consent for such review;

(7) disseminate information concerning the availability of the Student Loan Ombudsman to assist student loan borrowers and potential student loan borrowers, as well as public institutions of higher education, student loan servicers, and any other participant in student education loan lending, with any student loan servicing concerns; and

(8) take any other actions necessary to fulfill the duties of the Student Loan Ombudsman as set forth in this subsection.

Article 15. Licensing

Section 15-5. Applicability.

(a) No person shall act as a student loan servicer, directly or indirectly, without first obtaining a license from the Secretary under subsection (b) of Section 15-10 unless the person is exempt from licensure pursuant to subsection (b) of this Section.

(b) This Act does not apply to any of the following:

(1) a bank, out-of-state bank, Illinois credit union, federal credit union, or out-of-state credit union;

(2) a wholly owned subsidiary of any such bank or credit union; or

(3) an operating subsidiary where each owner of the operating subsidiary is wholly owned by the same bank or credit union.

Section 15-10. Applications.

(a) Any person seeking to act within this State as a student loan servicer shall make a written application to the Secretary for an initial license in the form the Secretary prescribes. The application shall be accompanied by:

(1) a financial statement prepared by a certified public accountant or a public accountant, the accuracy of which is sworn to under oath before a notary public by the proprietor, a general partner, or a corporate officer or a member duly authorized to execute the documents;

(2) the history of criminal convictions of the: (i) applicant; (ii) partners, if the applicant is a partnership; (iii) members, if the applicant is a limited liability company or association; or (iv) officers, directors, and principal employees, if the applicant is a corporation, and sufficient information pertaining to the history of criminal convictions of the applicant, partners, members, officers, directors, or principal employees as the Secretary deems necessary to make the findings under subsection (c) of this Section;

(3) a nonrefundable license fee of $1,000; and

(4) a nonrefundable investigation fee of $800.

The Secretary may conduct a State and national criminal history records check of the applicant and of each partner, member, officer, director, and principal employee of the applicant.

(b) Upon the filing of an application for an initial license and the payment of the fees for licensure and investigation, the Secretary shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The Secretary may issue a license if the Secretary finds that:

(1) the applicant's financial condition is sound;

(2) the applicant's business will be conducted honestly, fairly, equitably, carefully, and efficiently within the purposes and intent of this Act and in a manner commanding the confidence and trust of the community;

(3)(A) if the applicant is an individual, the individual is in all respects properly qualified and of good character;

(B) if the applicant is a partnership, each partner is in all respects properly qualified and of good character;

(C) if the applicant is a corporation or association, the president, chairperson of the executive committee, senior officer responsible for the corporation's business, and chief financial officer or any other person who performs similar functions as determined by the Secretary, each director, each trustee, and each shareholder owning 10% or more of each class of the securities of the corporation is in all respects properly qualified and of good character; or

(D) if the applicant is a limited liability company, each member is in all respects properly qualified and of good character;

(4) no person on behalf of the applicant knowingly has made any incorrect statement of a material fact in the application or in any report or statement made pursuant to this Act;

(5) no person on behalf of the applicant knowingly has omitted to state any material fact necessary to give the Secretary any information lawfully required by the Secretary;

(6) the applicant has paid the investigation fee and the license fee required under subsection (a); and

(7) the applicant has met any other similar requirements as determined by the Secretary.

(c) A license issued pursuant to subsection (b) of this Section shall expire at the close of business on September 30 of the odd-numbered year following its issuance, unless renewed or earlier surrendered, suspended, or revoked pursuant to Section 20-5 of this Act. No later than 15 days after a licensee ceases to engage in the business of student loan servicing in this State for any reason, including a business decision to terminate operations in this State, license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide written notice of surrender to the Secretary and shall surrender to the Secretary its license for each location in which the licensee has ceased to engage in business. The written notice of surrender shall identify the location where the records of the licensee will be stored and the name, address, and telephone number of an individual authorized to provide access to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring prior to the surrender of the license, including any administrative actions undertaken by the Secretary to revoke or suspend a license, assess a civil penalty, order restitution, or exercise any other authority provided to the Secretary.

(d) A license may be renewed for the ensuing 24-month period upon the filing of an application containing all required documents and fees as provided in subsection (b) of this Section. The renewal application shall be filed on or before September 1 of the year in which the license expires. Any renewal application filed with the Secretary after September 1 shall be accompanied by a $100 late fee and any such filing shall be deemed to be timely and sufficient. If an application for a renewal license has been filed with the Secretary on or before the date the license expires, the license sought to be renewed shall continue in full force and effect until the issuance by the Secretary of the renewal license applied for or until the Secretary has notified the licensee in writing of the Secretary's refusal to issue the renewal license together with the grounds upon which the refusal is based. The Secretary may refuse to issue a renewal license on any ground on which the Secretary might refuse to issue an initial license.

(e) If the Secretary determines that a check filed with the Secretary to pay a license or renewal fee has been dishonored, the Secretary shall automatically suspend the license or the renewal license that has been issued but is not yet effective. The Secretary shall give the licensee notice of the automatic suspension pending proceedings for revocation or refusal to renew and an opportunity for a hearing on such actions in accordance with the Illinois Administrative Procedure Act and the rules of the Secretary.

(f) The applicant or licensee shall notify the Secretary, in writing, of any change in the information provided in its initial application for a license or its most recent renewal application for licensure, as applicable, not later than 10 business days after the occurrence of the event that results in the information becoming inaccurate.

(g) The Secretary may deem an application for a license abandoned if the applicant fails to respond to any request for information required under this Act or any rules adopted pursuant to this Act. The Secretary shall notify the applicant, in writing, that if the applicant fails to submit the information no later than 60 days after the date on which the request for information was made, the application is deemed abandoned. An application filing fee paid before the date an application is deemed abandoned pursuant to this subsection shall not be refunded. Abandonment of an application pursuant to this subsection shall not preclude the applicant from submitting a new application for a license under this Section.

Section 15-15. Business name. No person licensed to act within this State as a student loan servicer shall do so under any other name or at any other place of business than that named in the license. Any change of location of a place of business of a licensee shall require prior written notice to the Secretary. No more than one place of business shall be maintained under the same license, but the Secretary may issue more than one license to the same licensee upon compliance with the provisions of this Act as to each new licensee. A license is not transferable or assignable.

Section 15-20. Recordkeeping.

(a) Each student loan servicer licensee and persons exempt from licensure pursuant to subsection (b) of Section 15-5 of this Act shall maintain adequate records of each student education loan transaction for no less than 2 years following the final payment on the student education loan or the assignment of the student education loan, whichever occurs first, or a longer period if required by any other provision of law.

(b) If requested by the Secretary, each student loan servicer shall make the records available or send the records to the Secretary by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, no later than 5 business days after requested by the Secretary to do so. Upon request, the Secretary may grant a licensee additional time to make the records available or send the records to the Secretary.

Article 20. Enforcement

Section 20-5. Administration and enforcement.

(a) The Secretary shall have the authority to conduct investigations and examinations as follows:

(1) For purposes of initial licensing, license renewal, license suspension, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this Act, the Secretary may access, receive, and use any books, accounts, records, files, documents, information, or evidence, including, but not limited to: (A) criminal, civil, and administrative history information; (B) personal history and experience information, including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act, 15 U.S.C. 1681a; and (C) any other documents, information, or evidence the Secretary deems relevant to the inquiry or investigation regardless of the location, possession, control, or custody of the documents, information, or evidence.

(2) For the purposes of investigating violations or complaints arising under this Act or for the purposes of examination, the Secretary may review, investigate, or examine any student loan servicer licensee or person subject to this Act as often as necessary in order to carry out the purposes of this Act. The Secretary may direct, subpoena, or order the attendance of and examine under oath any person whose testimony may be required about the student education loan or the business or subject matter of any examination or investigation, and may direct, subpoena, or order that person to produce books, accounts, records, files, and any other documents the Secretary deems relevant to the inquiry.

(b) In making any examination or investigation authorized by this Section, the Secretary may control access to any documents and records of the student loan servicer licensee or person under examination or investigation. The Secretary may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no person shall remove or attempt to remove any of the documents and records, except pursuant to a court order or with the consent of the Secretary. Unless the Secretary has reasonable grounds to believe the documents or records of the student loan servicer licensee or person have been or are at risk of being altered or destroyed for purposes of concealing a violation of this Act, the student loan servicer licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.

(c) In order to carry out the purposes of this Section, the Secretary may:

(1) retain accountants or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;

(2) enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this Section;

(3) use, hire, contract, or employ publicly or privately available analytical systems, methods, or software to examine or investigate the student loan servicer licensee or person subject to this Act;

(4) accept and rely on examination or investigation reports made by other government officials, within or without this State;

(5) accept audit reports made by an independent certified public accountant for the student loan servicer licensee or person subject to this Act in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of examination, report of investigation, or other writing of the Secretary; and

(6) adopt rules necessary to implement this Act.

(d) The authority of this Section shall remain in effect, whether the student loan servicer licensee or person subject to this Act acts or claims to act under any licensing or registration law of this State, or claims to act without such authority.

(e) No student loan servicer licensee or person subject to investigation or examination under this Section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.

(f) The Secretary may suspend, revoke, or refuse to renew any license issued under the provisions of this Act if the Secretary finds that (1) the licensee has violated any provision of this Act or any rule or order lawfully made pursuant to and within the authority of this Act, (2) any fact or condition exists that, if it had existed at the time of the original application for the license, clearly would have warranted a denial of the license, or (3) the licensee engaged in dishonest activities or made any misrepresentation. No abatement of the license fee shall be made if the license is surrendered, revoked, or suspended prior to the expiration of the period for which it was issued.

Section 20-10. Enforcement; Consumer Fraud and Deceptive Business Practices Act. In addition to any other penalties specified in this Act, violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

Article 90. Amendatory Provisions

Section 90-1. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2Z as follows:

(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, the Reverse Mortgage Act, Section 25 of the Youth Mental Health Protection Act, or the Personal Information Protection Act, or the Student Loan Servicing Rights Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642, eff. 7-28-16.)

Article 99. Severability; Effective Date

Section 99-1. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99-99. Effective date. This Act takes effect upon becoming law.".