{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-2610.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-2610.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-2610.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-2610.html"}],"law_id":82485,"edition_id":1,"section_id":82485,"structure_id":12857,"section_number":"6.2-2610","catch_line":"Prohibited activities; compliance with federal laws and regulations","history":"2020, cc. 1198, 1250.","full_text":"A\n\nNo qualified education loan servicer shall:1\n\nDirectly or indirectly employ any scheme, device, or artifice to defraud or mislead qualified education loan borrowers;2\n\nEngage in any unfair or deceptive act or practice toward any person or misrepresent or omit any material information in connection with the servicing of a qualified education loan, including misrepresenting (i) the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan; (ii) the terms and conditions of the loan agreement; or (iii) the borrower’s obligations under the loan;3\n\nObtain property by fraud or misrepresentation;4\n\nMisapply qualified education loan payments to the outstanding balance of a qualified education loan;5\n\nProvide inaccurate information to a nationally recognized consumer credit bureau;6\n\nFail to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau;7\n\nFail to communicate with an authorized representative of the borrower who provides a written authorization signed by the borrower, provided that the loan servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the borrower;8\n\nMake any false statement of a material fact or omit any material fact in connection with any information provided to the Commission or another governmental authority; or9\n\nEngage in any other prohibited activities identified in regulations adopted by the Commission pursuant to this chapter.B\n\nA qualified education loan servicer shall comply with all federal laws and regulations applicable to the conduct of its licensed business. In addition to any other remedies provided by law, a violation of any such federal law or regulation shall be deemed a violation of this chapter and a basis upon which the Commission may take enforcement action pursuant to § 6.2-2615, 6.2-2617, or 6.2-2618.C\n\nA qualified education loan servicer shall not engage in abusive acts or practices when servicing a qualified education loan. An act or practice is abusive in connection with the servicing of a qualified education loan if the act or practice does either of the following:1\n\nMaterially interferes with the ability of a borrower to understand a term or condition of a qualified education loan; or2\n\nTakes unreasonable advantage of:\n\t\t\t\ta. A lack of understanding on the part of a qualified education loan borrower of the material risks, costs, or conditions of the qualified education loan;\n\t\t\t\tb. The reasonable reliance by the borrower on a person engaged in the servicing of a qualified education loan to act in the interests of the borrower; or\n\t\t\t\tc. The inability of a borrower to protect the interests of the borrower when selecting (i) a qualified education loan or (ii) a feature, term, or condition of a qualified education loan.","order_by":null,"text":{"0":{"id":295535,"text":"No qualified education loan servicer shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":295536,"text":"Directly or indirectly employ any scheme, device, or artifice to defraud or mislead qualified education loan borrowers;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":295537,"text":"Engage in any unfair or deceptive act or practice toward any person or misrepresent or omit any material information in connection with the servicing of a qualified education loan, including misrepresenting (i) the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan; (ii) the terms and conditions of the loan agreement; or (iii) the borrower’s obligations under the loan;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":295538,"text":"Obtain property by fraud or misrepresentation;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":295539,"text":"Misapply qualified education loan payments to the outstanding balance of a qualified education loan;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":295540,"text":"Provide inaccurate information to a nationally recognized consumer credit bureau;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":295541,"text":"Fail to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":295542,"text":"Fail to communicate with an authorized representative of the borrower who provides a written authorization signed by the borrower, provided that the loan servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the borrower;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":295543,"text":"Make any false statement of a material fact or omit any material fact in connection with any information provided to the Commission or another governmental authority; or","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":295544,"text":"Engage in any other prohibited activities identified in regulations adopted by the Commission pursuant to this chapter.","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"B"},"10":{"id":295545,"text":"A qualified education loan servicer shall comply with all federal laws and regulations applicable to the conduct of its licensed business. In addition to any other remedies provided by law, a violation of any such federal law or regulation shall be deemed a violation of this chapter and a basis upon which the Commission may take enforcement action pursuant to § 6.2-2615, 6.2-2617, or 6.2-2618.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A9","next_prefix":"C"},"11":{"id":295546,"text":"A qualified education loan servicer shall not engage in abusive acts or practices when servicing a qualified education loan. An act or practice is abusive in connection with the servicing of a qualified education loan if the act or practice does either of the following:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"12":{"id":295547,"text":"Materially interferes with the ability of a borrower to understand a term or condition of a qualified education loan; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"13":{"id":295548,"text":"Takes unreasonable advantage of:\n\t\t\t\ta. A lack of understanding on the part of a qualified education loan borrower of the material risks, costs, or conditions of the qualified education loan;\n\t\t\t\tb. The reasonable reliance by the borrower on a person engaged in the servicing of a qualified education loan to act in the interests of the borrower; or\n\t\t\t\tc. The inability of a borrower to protect the interests of the borrower when selecting (i) a qualified education loan or (ii) a feature, term, or condition of a qualified education loan.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1"}},"ancestry":[{"id":12857,"edition_id":1,"name":"Qualified Education Loan Servicers","identifier":"26","label":"chapter","depth":3,"order_by":1,"parent_id":12856,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":267179,"object_type":"structure","relational_id":12857,"identifier":"26","token":"6.2\/IV\/26","url":"\/6.2\/IV\/26\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12856,"edition_id":1,"name":"Other Financial Activities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":267075,"object_type":"structure","relational_id":12856,"identifier":"IV","token":"6.2\/IV","url":"\/6.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79869,"structure_id":12857,"section_number":"6.2-2600","catch_line":"Definitions","url":"\/6.2-2600\/","token":"6.2\/IV\/26\/6.2-2600","metadata":false},{"id":56387,"structure_id":12857,"section_number":"6.2-2601","catch_line":"License requirement; 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place of business; changes; renewal","url":"\/6.2-2607\/","token":"6.2\/IV\/26\/6.2-2607","metadata":false},{"id":79671,"structure_id":12857,"section_number":"6.2-2608","catch_line":"Retention of records; responding to the Bureau","url":"\/6.2-2608\/","token":"6.2\/IV\/26\/6.2-2608","metadata":false},{"id":76529,"structure_id":12857,"section_number":"6.2-2609","catch_line":"Acquisition of control; application","url":"\/6.2-2609\/","token":"6.2\/IV\/26\/6.2-2609","metadata":false},{"id":82485,"structure_id":12857,"section_number":"6.2-2610","catch_line":"Prohibited activities; compliance with federal laws and regulations","url":"\/6.2-2610\/","token":"6.2\/IV\/26\/6.2-2610","metadata":false},{"id":77018,"structure_id":12857,"section_number":"6.2-2611","catch_line":"Affirmative acts required of qualified education loan servicers","url":"\/6.2-2611\/","token":"6.2\/IV\/26\/6.2-2611","metadata":false},{"id":65901,"structure_id":12857,"section_number":"6.2-2612","catch_line":"Reporting requirements","url":"\/6.2-2612\/","token":"6.2\/IV\/26\/6.2-2612","metadata":false},{"id":80772,"structure_id":12857,"section_number":"6.2-2613","catch_line":"Investigations; examinations","url":"\/6.2-2613\/","token":"6.2\/IV\/26\/6.2-2613","metadata":false},{"id":61083,"structure_id":12857,"section_number":"6.2-2614","catch_line":"Annual fees","url":"\/6.2-2614\/","token":"6.2\/IV\/26\/6.2-2614","metadata":false},{"id":76191,"structure_id":12857,"section_number":"6.2-2615","catch_line":"Suspension or revocation of license","url":"\/6.2-2615\/","token":"6.2\/IV\/26\/6.2-2615","metadata":false},{"id":81753,"structure_id":12857,"section_number":"6.2-2616","catch_line":"Notice of proposed suspension or revocation","url":"\/6.2-2616\/","token":"6.2\/IV\/26\/6.2-2616","metadata":false},{"id":53994,"structure_id":12857,"section_number":"6.2-2617","catch_line":"Cease and desist orders","url":"\/6.2-2617\/","token":"6.2\/IV\/26\/6.2-2617","metadata":false},{"id":63307,"structure_id":12857,"section_number":"6.2-2618","catch_line":"Civil penalties","url":"\/6.2-2618\/","token":"6.2\/IV\/26\/6.2-2618","metadata":false},{"id":79951,"structure_id":12857,"section_number":"6.2-2619","catch_line":"Private cause of action","url":"\/6.2-2619\/","token":"6.2\/IV\/26\/6.2-2619","metadata":false},{"id":63154,"structure_id":12857,"section_number":"6.2-2620","catch_line":"Investigating and restraining prohibited acts","url":"\/6.2-2620\/","token":"6.2\/IV\/26\/6.2-2620","metadata":false},{"id":60246,"structure_id":12857,"section_number":"6.2-2621","catch_line":"Violation of the Virginia Consumer Protection Act","url":"\/6.2-2621\/","token":"6.2\/IV\/26\/6.2-2621","metadata":false},{"id":69784,"structure_id":12857,"section_number":"6.2-2622","catch_line":"Regulations","url":"\/6.2-2622\/","token":"6.2\/IV\/26\/6.2-2622","metadata":false}],"previous_section":{"id":76529,"structure_id":12857,"section_number":"6.2-2609","catch_line":"Acquisition of control; application","url":"\/6.2-2609\/","token":"6.2\/IV\/26\/6.2-2609","metadata":false},"next_section":{"id":77018,"structure_id":12857,"section_number":"6.2-2611","catch_line":"Affirmative acts required of qualified education loan servicers","url":"\/6.2-2611\/","token":"6.2\/IV\/26\/6.2-2611","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-2610\/","history_text":"

This law was first created in 2020. The record of its establishment is cataloged in chapters 1198<\/a> and 1250<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":76191,"section_number":"6.2-2615","catch_line":"Suspension or revocation of license","order_by":null,"url":"\/6.2-2615\/"},{"id":53994,"section_number":"6.2-2617","catch_line":"Cease and desist orders","order_by":null,"url":"\/6.2-2617\/"}],"permalink":{"id":267221,"object_type":"law","relational_id":82485,"identifier":"6.2-2610","token":"6.2\/IV\/26\/6.2-2610","url":"\/6.2-2610\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-2610\/","token":"6.2\/IV\/26\/6.2-2610","dublin_core":{"Title":"Prohibited activities; compliance with federal laws and regulations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-2610","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No qualified education loan<\/span> servicer<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Directly or indirectly employ any scheme, device, or artifice to defraud or mislead qualified education loan<\/span> borrowers<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Engage in any unfair or deceptive act or practice toward any person<\/span> or misrepresent or omit any material<\/span> information in connection with the servicing of a qualified education loan<\/span>, including misrepresenting (i) the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan<\/span>; (ii) the terms and conditions of the loan agreement; or (iii) the borrower<\/span>’s obligations under the loan; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Obtain property by fraud<\/span> or misrepresentation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Misapply qualified education loan<\/span> payments to the outstanding balance of a qualified education loan<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Provide inaccurate information to a nationally recognized consumer credit bureau<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Fail to report both the favorable and unfavorable payment history of the borrower<\/span> to a nationally recognized consumer credit bureau<\/span> at least annually if the loan servicer regularly reports information to such a credit bureau<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Fail to communicate with an authorized representative of the borrower<\/span> who provides a written authorization signed by the borrower<\/span>, provided that the loan servicer may adopt procedures reasonably related to verifying that the representative is in fact<\/span> authorized to act on behalf of the borrower<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Make any false statement of a material<\/span> fact<\/span> or omit any material<\/span> fact<\/span> in connection with any information provided to the Commission<\/span> or another governmental authority; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Engage in any other prohibited activities identified in regulations adopted by the Commission<\/span> pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A qualified education loan<\/span> servicer<\/span> shall comply with all federal laws<\/span> and regulations applicable to the conduct of its licensed business. In addition to any other remedies provided by law<\/span>, a violation of any such federal law<\/span> or regulation shall be deemed a violation of this chapter and a basis upon which the Commission<\/span> may take enforcement action pursuant to § 6.2-2615<\/a>, 6.2-2617<\/a>, or 6.2-2618<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A qualified education loan<\/span> servicer<\/span> shall not engage in abusive acts or practices when servicing a qualified education loan<\/span>. An act or practice is abusive in connection with the servicing of a qualified education loan<\/span> if the act or practice does either of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Materially interferes with the ability of a borrower<\/span> to understand a term or condition of a qualified education loan<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Takes unreasonable advantage of:\n\t\t\t\ta. A lack of understanding on the part of a qualified education loan<\/span> borrower<\/span> of the material<\/span> risks, costs, or conditions of the qualified education loan<\/span>;\n\t\t\t\tb. The reasonable reliance by the borrower on a person<\/span> engaged in the servicing of a qualified education loan<\/span> to act in the interests of the borrower; or\n\t\t\t\tc. The inability of a borrower to protect the interests of the borrower when selecting (i) a qualified education loan<\/span> or (ii) a feature, term, or condition of a qualified education loan<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITED ACTIVITIES; COMPLIANCE WITH FEDERAL LAWS AND REGULATIONS (\u00a7\n6.2-2610)\n\nA. No qualified education loan servicer shall:\n\n 1. Directly or indirectly employ any scheme, device, or artifice to defraud or\n mislead qualified education loan borrowers;\n\n 2. Engage in any unfair or deceptive act or practice toward any person or\n misrepresent or omit any material information in connection with the servicing\n of a qualified education loan, including misrepresenting (i) the amount,\n nature, or terms of any fee or payment due or claimed to be due on a qualified\n education loan; (ii) the terms and conditions of the loan agreement; or (iii)\n the borrower’s obligations under the loan;\n\n 3. Obtain property by fraud or misrepresentation;\n\n 4. Misapply qualified education loan payments to the outstanding balance of a\n qualified education loan;\n\n 5. Provide inaccurate information to a nationally recognized consumer credit\n bureau;\n\n 6. Fail to report both the favorable and unfavorable payment history of the\n borrower to a nationally recognized consumer credit bureau at least annually\n if the loan servicer regularly reports information to such a credit bureau;\n\n 7. Fail to communicate with an authorized representative of the borrower who\n provides a written authorization signed by the borrower, provided that the\n loan servicer may adopt procedures reasonably related to verifying that the\n representative is in fact authorized to act on behalf of the borrower;\n\n 8. Make any false statement of a material fact or omit any material fact in\n connection with any information provided to the Commission or another\n governmental authority; or\n\n 9. Engage in any other prohibited activities identified in regulations adopted\n by the Commission pursuant to this chapter.\n\nB. A qualified education loan servicer shall comply with all federal laws and\nregulations applicable to the conduct of its licensed business. In addition to\nany other remedies provided by law, a violation of any such federal law or\nregulation shall be deemed a violation of this chapter and a basis upon which\nthe Commission may take enforcement action pursuant to § 6.2-2615,\n6.2-2617, or 6.2-2618.\n\nC. A qualified education loan servicer shall not engage in abusive acts or\npractices when servicing a qualified education loan. An act or practice is\nabusive in connection with the servicing of a qualified education loan if the\nact or practice does either of the following:\n\n 1. Materially interferes with the ability of a borrower to understand a term\n or condition of a qualified education loan; or\n\n 2. Takes unreasonable advantage of:\n \t\t\t\ta. A lack of understanding on the part of a qualified education loan\n borrower of the material risks, costs, or conditions of the qualified\n education loan;\n \t\t\t\tb. The reasonable reliance by the borrower on a person engaged in the\n servicing of a qualified education loan to act in the interests of the\n borrower; or\n \t\t\t\tc. The inability of a borrower to protect the interests of the borrower\n when selecting (i) a qualified education loan or (ii) a feature, term, or\n condition of a qualified education loan.\n\nHISTORY: 2020, cc. 1198, 1250.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}