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SENATE FLOOR VERSION
April 12, 2022
ENGROSSED HOUSE
BILL NO. 3505 By: Provenzano and Phillips of
the House
and
Montgomery of the Senate
An Act relating to student loans; amending 24 O.S.
2021, Section 172, which relates to the Oklahoma
Student Borrower's Bill of Rights Act; prohibiting
student loan servicer from failing to provide certain
loan forgiveness information; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 24 O.S. 2021, Section 172, is
amended to read as follows:
Section 172. A. The Attorney General shall prepare a written
statement that includes an "Oklahoma Student Borrower 's Bill of
Rights" for a student loan borrower who takes out a student
education loan that is serviced by a student loan servicer. The
statement shall incorporate all items from subsection B of this
section and be made available to the public and written in plain
language designed to be easily underst ood by the average student
loan borrower.
B. No student loan servicer shall:
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1. Directly or indirectly employ any scheme, device or artifice
to defraud or mislead student loan borrowers;
2. Engage in any unfair or decept ive practice toward any person
or misrepresent or omit any material information in connection with
the servicing of a studen t 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 loa n, the
terms and conditions of the loan agreement or the borrower's
obligations under the l oan;
3. Obtain property by fraud or misrepresentation;
4. Incorrectly apply or fail to apply student education loan
payments to the outstanding balance of a studen t education loan;
5. 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 recogniz ed
consumer credit bureau at least annually if the student loan
servicer regularly reports information to a credit bureau, except in
the case of loan rehabilitation;
7. Refuse to communicate with an authorized representati ve of
the student loan borrower w ho provides a written authorization
signed by the student loan borrower, provided the stude nt loan
servicer may adopt procedures reasonably related to verifying that
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the representative is in fact authorized to act on behalf of the
student loan borrower;
8. Make any false statement or misrepresentation by omission of
a material fact in connectio n with any information or reports filed
with a governmental agency or in connection with any investigation
conducted by a government al agency;
9. Fail to inform bor rowers of the federal income repayment
options before offering deferment or forbearance as an option; or
10. Inform Fail to inform student loan borrower borrowers if
their type of loan does not qualify for loan forgiveness programs.
SECTION 2. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
April 12, 2022 - DO PASS