                                 CODE OF VIRGINIA

PROHIBITED ACTIVITIES; COMPLIANCE WITH FEDERAL LAWS AND REGULATIONS (§
6.2-2610)

A. No qualified education loan servicer shall:

   1. Directly or indirectly employ any scheme, device, or artifice to defraud or
   mislead qualified education loan borrowers;

   2. 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&#8217;s obligations under the loan;

   3. Obtain property by fraud or misrepresentation;

   4. Misapply qualified education loan payments to the outstanding balance of a
   qualified education loan;

   5. Provide inaccurate information to a nationally recognized consumer credit
   bureau;

   6. 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;

   7. 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;

   8. 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

   9. Engage in any other prohibited activities identified in regulations adopted
   by the Commission pursuant to this chapter.

B. 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 &#xA7; 6.2-2615,
6.2-2617, or 6.2-2618.

C. 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:

   1. Materially interferes with the ability of a borrower to understand a term
   or condition of a qualified education loan; or

   2. Takes unreasonable advantage of:
   				a. 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;
   				b. 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
   				c. 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.

HISTORY: 2020, cc. 1198, 1250.