Subdivision 1.Misleading borrowers.
A student loan servicer must not directly or indirectly employ any scheme, device, or artifice to attempt to defraud or mislead a borrower.
Subd. 2.Misrepresentation.
A student loan servicer must not engage in any unfair or deceptive practice or misrepresent or omit any material information in connection with the servicing of a student loan, including but not limited to misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan.
Subd. 3.Misapplication of payments.
A student loan servicer must not knowingly or negligently misapply student loan payments to the outstanding balance of a student loan.
Subd. 4.Ina
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Subdivision 1.Misleading borrowers.
A student loan servicer must not directly or indirectly employ any scheme, device, or artifice to attempt to defraud or mislead a borrower.
Subd. 2.Misrepresentation.
A student loan servicer must not engage in any unfair or deceptive practice or misrepresent or omit any material information in connection with the servicing of a student loan, including but not limited to misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan.
Subd. 3.Misapplication of payments.
A student loan servicer must not knowingly or negligently misapply student loan payments to the outstanding balance of a student loan.
Subd. 4.Inaccurate information.
A student loan servicer must not knowingly or negligently provide inaccurate information to any consumer reporting agency.
Subd. 5.Reporting of payment history.
A student loan servicer must not fail to report both the favorable and unfavorable payment history of the borrower to a consumer reporting agency at least annually, if the student loan servicer regularly reports payment history information.
Subd. 6.Refusal to communicate with a borrower's representative.
A student loan servicer must not refuse to communicate with a representative of the borrower who provides a written authorization signed by the borrower. The student loan servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the borrower.
Subd. 7.False statements and omissions.
A student loan servicer must not knowingly or negligently make any false statement or omission of material fact in connection with any application, information, or reports filed with the commissioner or any other federal, state, or local government agency.
Subd. 8.Noncompliance with applicable laws.
A student loan servicer must not violate any other federal, state, or local laws, including those related to fraudulent, coercive, or dishonest practices.
Subd. 9.Incorrect information regarding student loans.
(a) A student loan servicer must not misrepresent the availability of student loan forgiveness for which the servicer has reason to know the borrower is eligible. This includes but is not limited to student loan forgiveness programs specific to military borrowers, borrowers working in public service, or borrowers with disabilities.
(b) A student loan servicer must not provide incorrect information related to forbearance. If a student loan servicer suggests placing a borrower in forbearance in lieu of a repayment program that would result in savings to the borrower and the borrower relies on this information, the student loan servicer shall be subject to the penalties provided under section58B.09.
Subd. 10.Compliance with servicer duties.
A student loan servicer must comply with the duties and obligations under section58B.06.
Subd. 11.Property.
A student loan servicer must not obtain property by fraud or misrepresentation.
Subd. 12.Customer service.
A student loan servicer must not allow a borrower to remain on hold during an individual call for more than two hours unless the student loan servicer returns the borrower's phone call within 24 hours of the two hours expiring. A student loan servicer must not allow a call on hold to automatically lapse or end upon reaching a duration of two hours to satisfy this requirement.
Subd. 13.Abusive acts or practices.
A student loan servicer must not engage in abusive acts or practices when servicing a student loan in this state. An act or practice is abusive in connection with the servicing of a student loan if that act or practice:
(1) materially interferes with the ability of a borrower to understand a term or condition of a student loan; or
(2) takes unreasonable advantage of any of the following:
(i) a lack of understanding on the part of a borrower of the material risks, costs, or conditions of the student loan;
(ii) the inability of a borrower to protect the interests of the borrower when selecting or using a student loan or feature, term, or condition of a student loan; or
(iii) the reasonable reliance by the borrower on a student loan servicer to act in the interests of the borrower.
Subd. 14.Violations.
A violation of this section is an unlawful practice under section325D.44.