§ 19-33-12. Prohibited conduct.
No student loan servicer shall:
(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead
student loan borrowers;
(2) Engage in any unfair or deceptive practice toward any person or misrepresent or omit
any material information in connection with the servicing of a student education 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 education loan, the terms and
conditions of the loan agreement, or the borrower's obligations under the loan;
(3) Obtain property by fraud or misrepresentation;
(4) Knowingly misapply or recklessly apply student education loan payments to the outstanding
balance of a student education loan;
(5) Knowingly or recklessly provide inaccurate information to a credit bureau, thereby
harming a student loan borrower's creditworthiness;
(6) Fail to report both the favorable and unfavorable payment history of the student loan
borrower to a nationally recognized consumer credit bureau at least annually if the
student loan servicer regularly reports information to a credit bureau;
(7) Refuse to communicate with an authorized representative of the student loan borrower
who provides a written authorization signed by the student loan borrower, provided
the student loan servicer may adopt procedures reasonably related to verifying that
the representative is in fact authorized to act on behalf of the student loan borrower;
(8) Negligently make any false statement or knowingly or willfully make any omission of
a material fact in connection with any information or reports filed with a governmental
agency or in connection with any examination conducted by the department or investigation
conducted by the attorney general or other governmental agency; or
(9) Fail to properly evaluate a student loan borrower for an income-driven or other student
loan repayment program or for eligibility for a public service loan forgiveness program
before placing the student loan borrower in forbearance or default, if an income-driven
repayment or other program is available to the student loan borrower except as otherwise
provided in federal law, federal student loan agreements, or a contract between the
federal government and a student loan servicer.