In this subtitle the following words have the meanings indicated. “Consumer reporting agency” has the meaning stated in § 14–1201 of the Commercial Law Article. “Nonconforming payment” means a payment made by a student loan borrower that is more or less than the required payment for a student education loan account. “Servicing” means: Receiving any scheduled periodic payments from a student loan borrower or notification of the payments; and Applying the payments to a student loan borrower’s account according to the terms of a student education loan or a contract governing the services; During a period when no payment is required on a student education loan: Maintaining account records for the student education loan; and Communicating with the student loan borrower regarding the student education loan on behalf of the holder of the student education loan; or Interacting with a student loan borrower, including interactions to help prevent default on obligations arising from a student education loan, to facilitate the activities described in item (1) or (2) of this subsection. “Student education loan” means any loan that is: Made, insured, or guaranteed under Title IV of the Higher Education Act of 1965, as amended; or Regardless of whether the loan is provided through the educational institution that the student loan borrower attends or directly to the student loan borrower from the lender, extended to an individual with the express expectation that the funds extended will be used in whole or in part to pay expenses that are included as part of the cost of attendance of a student as defined in 20 U.S.C. § 1087. “Student education loan” includes a loan that is extended in order to refinance or consolidate a consumer’s existing student education loans. “Student education loan” does not include, regardless of the purpose for the loan, a loan: Under an open–end credit plan as defined in 12 C.F.R. § 1026.2; or That is secured by real property. “Student loan borrower” means a resident of the State who: Has received or agreed to pay a student education loan; or Shares repayment responsibility with a resident described in item (1) of this subsection. “Student loan servicer” means a person, regardless of location, responsible for servicing a student education loan to a student loan borrower. “Student loan servicer” includes a trust entity performing or having the authority to control student loan servicing.

Except as otherwise required by federal law or a court order, a student loan servicer may not: Employ, directly or indirectly, any scheme, device, or artifice to mislead a student loan borrower; Engage in any unfair, abusive, or deceptive trade practice toward any person; Misrepresent information or omit any material information in connection with the servicing of a student education loan, including: Any fee owed by a student loan borrower; Any payment due by a student loan borrower; The appropriateness or availability of a student loan borrower’s repayment options; The terms and conditions of the student education loan; and The student loan borrower’s obligations under the student education loan; Obtain property by misrepresentation of fact or omission of material fact; On or after February 1, 2020, allocate a nonconforming payment in a manner other than as directed by the student loan borrower if, in writing or electronically, the student loan borrower: Makes a one–time direction for the allocation of future payments; Directs an allocation of a payment at the time the payment is made; Directs an allocation in response to an inquiry by the student loan servicer; or Changes an existing direction for the allocation of future payments; Knowingly or recklessly misapply, or refuse to correct a misapplication of a payment from a student loan borrower; Knowingly or recklessly provide inaccurate information to a consumer reporting agency, or refuse to correct inaccurate information provided to a consumer reporting agency; If a student loan servicer regularly reports information to a consumer reporting agency, fail to report the favorable history of a student loan borrower to a nationally recognized consumer reporting agency at least once a year; Subject to subsection (b) of this section, refuse to communicate with an authorized representative of a student loan borrower who provides a written authorization signed by the student loan borrower; Negligently make a false statement or omit a material fact in connection with any information report filed with, or any investigation conducted by, a state or local government agency; or Violate any federal law concerning student education loan servicing. A student loan servicer may adopt procedures to verify that an authorized representative of a student loan borrower is, in fact, authorized to act on behalf of the student loan borrower. A student loan servicer shall acknowledge receipt of a written inquiry or complaint from a student loan borrower or the authorized representative of a student loan borrower within 10 days after receiving the inquiry or complaint. Unless a response to the written inquiry is included in the acknowledgment required under paragraph (1) of this subsection, a student loan servicer shall provide information responding to a written inquiry or complaint received under paragraph (1) of this subsection within 30 days after receiving the inquiry or complaint. If a written inquiry or complaint received under paragraph (1) of this subsection relates to a student loan borrower’s account balance, the information provided under paragraph (2) of this subsection shall: State that the student loan servicer has corrected the account balance; or Explain why the student loan servicer believes that the student loan borrower’s account is correct. If a student loan borrower requests a document concerning the account of the student loan borrower that is in the possession or control of a student loan servicer, the student loan servicer shall provide the document within 30 days after receiving the request.

A violation of this subtitle is: An unfair, abusive, or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article; and Subject to the enforcement and penalty provisions contained in Title 13 of the Commercial Law Article.

The Commissioner of Financial Regulation may enforce the provisions of this subtitle by exercising any of the powers provided under §§ 2–113 through 2–116 of the Financial Institutions Article. The Commissioner of Financial Regulation may seek an injunction to prohibit a person who has engaged in or is engaging in a violation of this subtitle from engaging in or continuing to engage in the violation. The court may enter any order or judgment necessary to: Prevent the use by a person of a prohibited practice; Restore to a person any money or real or personal property acquired from the person by means of a prohibited practice; or Appoint a receiver in a case of a willful violation of this subtitle. In any action brought by the Commissioner of Financial Regulation under this subsection, the Commissioner is entitled to recover the costs of the action for the use of the State. The Commissioner of Financial Regulation may enforce the provisions of this subtitle by requiring a violator to take affirmative action to correct the violation, including the restitution of money or property to a person aggrieved by the violation. The Commissioner of Financial Regulation may: Investigate violations of this subtitle; and Aid any other unit of State government that has regulatory jurisdiction over the business activities of the violator. The Commissioner of Financial Regulation may cooperate in the investigation and prosecution of any violation of this subtitle with the Office of the Attorney General, the State’s Attorney, or any other unit of law enforcement.