From Progress Virginia:
RICHMOND, Va. – by way of a vote of 40-0, the Virginia Senate today passed Senator Janet Howell’s SB77, the scholar Loan Borrowers’ Bill of Rights.
The legislation will include education loan servicers like Navient to your listing of economic entities controlled because of the state’s Bureau of banking institutions. Especially, the balance prohibits loan servicers from misapplying loan re re payments, misrepresenting or material that is omitting about the terms or conditions regarding the loan, and supplying inaccurate information to credit agencies.
Your house type of the balance, sponsored by Delegate Marcus Simon and Delegate Marcia cost, has recently cleared your house.
Navient happens to be sued because of the by the customer Financial Protection Bureau, the United states Federation of Teachers, and five states for failing woefully to precisely use re payments to borrowers’ accounts, reporting loans improperly to credit agencies, deceiving borrowers about cosigner launch needs, and pressing borrowers that are struggling into forbearance as opposed to into income-driven payment plans.
“In Virginia, we now have something called the Bureau of banking institutions, which regulates providers that are financial banking institutions, credit unions, mortgage brokers as well as payday loan providers, ” said Senator Howell. “Virtually every single other form of financial obligation is controlled in Virginia, except student loan financial obligation. This not enough regulation is egregious considering that we now have over 1 million borrowers in Virginia who will be collectively carrying over $41 billion in education loan financial obligation. Student loan financial obligation can be unique for the reason that it can’t be discharged in a bankruptcy. Now we can’t replace the federal bankruptcy regulations, but we are able to manage these education loan servicers to make certain we’re protecting our borrowers from shady methods.