CaliforniaStudent loan servicing.
What it does
Existing law, the Student Loan Servicing Act, prohibits a person from engaging in the business of servicing a student loan in California without first obtaining a license. Existing law commits the administration of these provisions to the Commissioner of Financial Protection and Innovation and grants the commissioner various powers in this regard, including the authority to conduct investigations of applicants and licensees.
More detail
Existing law, the Unfair Competition Law (UCL), makes various practices unlawful and makes a person who engages, has engaged, or proposes to engage in unfair competition liable for a civil penalty, as specified. Existing law authorizes actions for relief prosecuted under the UCL to be brought by certain public attorneys and requires the penalty collected from those actions to be paid to the treasurer of the county or city in which the judgment is entered, as specified.
This bill would specify that a student loan servicer under the Student Loan Servicing Act, is subject to the UCL.
Existing law, the Rosenthal Fair Debt Collection Practices Act, regulates the collection of consumer debts by debt collectors, as defined. Under existing law, a debt collector who violates the act is liable to a debtor for actual damages resulting from the violation, and is subject to additional civil penalties for any willful or knowing violation of the act, and other specified remedies. Existing law also makes certain violations of the act punishable as a crime.
The bill would specify that a student loan is a debt that is subject to the Rosenthal Fair Debt Collection Practices Act. The bill would further specify that a transaction giving rise to a student loan is a consumer credit transaction for purposes of the Rosenthal Fair Debt Collection Practices Act. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Where do you stand?
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Aug 29In committee: Held under submission.Latest
- Aug 18In committee: Referred to suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 16From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (July 15). Re-referred to Com. on APPR.Minor
- Jul 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Jul 3From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (July 2). Re-referred to Com. on JUD.Minor
- Jul 2
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar. Result: pass.Upper
- Jun 11Referred to Coms. on B. & F.I. and JUD.Minor
- Jun 3In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Jun 2Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1860.)Passed Assembly
- Vote recorded AB 866 Ortega Assembly Third Reading. Result: pass.Lower
- May 27Read second time. Ordered to third reading.Minor
- May 23From committee: Do pass. (Ayes 14. Noes 0.) (May 23).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 29From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 28). Re-referred to Com. on APPR.Minor
- Apr 28Joint Rule 62(a) suspended. (Page 1307.)
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 8From committee: Do pass and re-refer to Com. on B. & F. (Ayes 12. Noes 0.) (April 8). Re-referred to Com. on B. & F.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Banking and Finance]. Result: pass.Lower
- Mar 13Re-referred to Coms. on JUD. and B.&F. pursuant to Assembly Rule 96.Minor
- Mar 10Referred to Coms. on B.&F. and JUD.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced