California Assembly Bill 424
Session 20212022
Private Student Loan Collections Reform Act: collection actions.
Became Law
Became Law on Oct 6, 2021
Origin Chamber
Assembly
Type
Bill
Bill Number
424
State
California
Session
20212022
Mark Stone
grade
Author
Coauthor
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Motion Text
AB 424 Stone Concurrence in Senate Amendments
Assembly Roll Call Votes
Other
Yes
Yes
Other
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Other
Yes
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Yes
Fong
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Other
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Summary
Existing law, the Student Loan Servicing Act, provides for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Financial Protection and Innovation, who is the head of the Department of Financial Protection and Innovation. The act prohibits a person from engaging in the business of servicing a student loan in this state without a license, unless the person falls within certain exceptions.
Existing law, the Student Borrower Bill of Rights, imposes requirements on a student loan servicer, including, among others, the timely posting, processing, and crediting of student loan payments, and applying overpayments consistent with the best financial interest of a student loan borrower. Existing law also prohibits a student loan servicer from engaging in unfair or deceptive practices, or abusive acts or practices in connection with the servicing of a student loan, and authorizes a person to bring an action for actual damages, injunctive relief, restitution, punitive damages, attorney's fees, and other relief, including treble damages in certain circumstances.
This bill would enact the Private Student Loan Collections Reform Act, which would become operative July 1, 2022. The act would prohibit a private education lender or a private education loan collector, as defined, from making any written statement to a debtor in an attempt to collect a private education loan unless the private education lender or private education loan collector possesses certain information regarding the loan and provides this information to the debtor, as specified. The act would require all settlement agreements between a private education lender or private education loan collector and a debtor to be documented in open court or otherwise reduced to writing, as specified. The act would also require a private education lender or private education loan collector that accepts a payment as payment in full or as a full and final compromise of a private education loan, within 30 calendar days, to provide specified information to the debtor regarding the loan.
The act would also prohibit a private education lender or private education loan collector from bringing suit or initiating an arbitration or other legal proceeding to collect a private education loan if the applicable statute of limitations on the claim has expired. The act would require a complaint, with respect to an action brought by a private education lender or private education loan collector to collect a private education loan, to contain specified information and would prohibit a default or other judgment from being entered against a defendant unless documents submitted to the court establish the facts alleged. The act would require a plaintiff seeking an exemption, as an exempt entity, from those requirements to attach to the complaint a declaration or affidavit, signed under penalty of perjury, stating certain information. By expanding the scope of the crime of perjury, the bill would create a state-mandated local program. The act would also authorize a person to bring a cause of action against a creditor, private education lender, or private education loan collector for violating the act for actual damages, statutory damages, restitution, and other specified relief.
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.
02/04/21 - Introduced
February 4, 2021
04/21/21 - Amended Assembly
April 21, 2021
06/14/21 - Amended Senate
June 14, 2021
06/25/21 - Amended Senate
June 25, 2021
07/08/21 - Amended Senate
July 8, 2021
08/26/21 - Amended Senate
August 26, 2021
09/07/21 - Enrolled
September 7, 2021
10/06/21 - Chaptered
October 6, 2021
04/14/21- Assembly Banking and Finance
April 14, 2021
04/17/21- Assembly Judiciary
April 17, 2021
05/03/21- Assembly Appropriations
May 3, 2021
05/24/21- ASSEMBLY FLOOR ANALYSIS
May 24, 2021
06/20/21- Senate Banking and Financial Institutions
June 20, 2021
07/02/21- Senate Judiciary
July 2, 2021
08/13/21- Senate Appropriations
August 13, 2021
08/26/21- Senate Appropriations
August 26, 2021
08/31/21- Sen. Floor Analyses
August 31, 2021
09/01/21- ASSEMBLY FLOOR ANALYSIS
September 1, 2021
10/06/2021
California State Legislature
Chaptered by Secretary of State - Chapter 559, Statutes of 2021.
10/06/2021
California State Legislature
Approved by the Governor.
09/10/2021
California State Legislature
Enrolled and presented to the Governor at 4 p.m.
09/02/2021
Assembly
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 18. Page 2706.).
09/02/2021
Assembly
Assembly Rule 77 suspended. (Ayes 57. Noes 14. Page 2703.)
09/01/2021
Assembly
In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 3 pursuant to Assembly Rule 77.
09/01/2021
Senate
Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 8. Page 2297.).
08/30/2021
Senate
Read second time. Ordered to third reading.
08/26/2021
Senate
Read second time and amended. Ordered returned to second reading.
08/26/2021
Senate
From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 26).
08/16/2021
Senate
In committee: Referred to suspense file.
07/08/2021
Senate
Read second time and amended. Re-referred to Com. on APPR.
07/07/2021
Senate
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (July 6).
06/25/2021
Senate
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
06/23/2021
Senate
From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 2.) (June 23). Re-referred to Com. on JUD.
06/14/2021
Senate
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.
06/09/2021
Senate
Referred to Coms. on B. & F.I., JUD. and APPR.
05/28/2021
Senate
In Senate. Read first time. To Com. on RLS. for assignment.
05/27/2021
Assembly
Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 20. Page 1629.)
05/24/2021
Assembly
Read second time. Ordered to third reading.
05/20/2021
Assembly
From committee: Do pass. (Ayes 12. Noes 4.) (May 20).
05/05/2021
Assembly
In committee: Set, first hearing. Referred to APPR. suspense file.
04/22/2021
Assembly
Re-referred to Com. on APPR.
04/21/2021
Assembly
Read second time and amended.
04/20/2021
Assembly
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (April 20).
04/19/2021
Assembly
From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 3.) (April 15). Re-referred to Com. on JUD.
04/08/2021
Assembly
(pending re-refer to Com. on JUD.)
04/08/2021
Assembly
Assembly Rule 56 suspended. (Page 924.)
02/12/2021
Assembly
Referred to Coms. on B. & F. and JUD.
02/05/2021
Assembly
From printer. May be heard in committee March 7.
02/04/2021
Assembly
Read first time. To print.
Sources
Record Created
Feb 5, 2021 6:02:30 AM
Record Updated
Nov 17, 2022 11:25:56 PM