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2023 - 2024 LEGISLATURE
2023 SENATE BILL 859
December 26, 2023 - Introduced by Senators HESSELBEIN, SMITH, CARPENTER,
TAYLOR, ROYS, LARSON, L. JOHNSON, AGARD and SPREITZER, cosponsored by
Representatives JOERS, DRAKE, SINICKI, NEUBAUER, RATCLIFF, BARE, EMERSON,
SHELTON, JACOBSON, CONSIDINE, PALMERI, C. ANDERSON, SUBECK, CLANCY,
HONG, MOORE OMOKUNDE, J. ANDERSON, MADISON, STUBBS, BALDEH, CONLEY,
SHANKLAND and ORTIZ-VELEZ. Referred to Committee on Financial
Institutions and Sporting Heritage.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to amend 15.01 (6) and 15.02 (3) (c) 1.; and to create 15.185 (6) and
subchapter V of chapter 224 [precedes 224.101] of the statutes; relating to:
student loans for postsecondary education, requirements related to student
loan servicers, creating an office of the student loan ombudsman in the
Department of Financial Institutions, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill creates an Office of the Student Loan Ombudsman (office) in the
Department of Financial Institutions and requires student loan servicers to be
licensed by this office. The bill contains a variety of provisions governing student
education loans, student loan borrowers, and student loan servicers. Under the bill,
a “student education loan" means a loan that is extended to a student loan borrower
expressly for postsecondary education expenses or related expenses. A “student loan
borrower" means a resident of this state who has received or agreed to pay a student
education loan or a person who shares legal responsibility for repaying the loan. A
“student loan servicer" means a person responsible for the servicing of a student
education loan, but excludes certain state-regulated financial service providers.
“Servicing” means receiving scheduled periodic payments from a student loan
borrower; applying payments received from a student loan borrower; and performing
other administrative services with respect to a student education loan.
The bill requires a student loan servicer, wherever located, to be licensed by the
office before directly or indirectly engaging in servicing student education loans in
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this state. A student loan servicer must hold a separate license for each of its places
of business and the student loan servicer may not act under any name or at any place
of business that is not identified in the license.
The bill imposes numerous requirements on student loan servicers, including
requirements relating to all of the following:
1. Responding to written inquiries from student loan borrowers.
2. Handling and applying “nonconforming payments," defined as payments on
student education loans that are different from the required payments.
3. Responsibilities if there is a sale, assignment, or other transfer of the
servicing of a student education loan.
4. Maintaining and making available to the office records related to student
education loan transactions.
The bill also prohibits a student loan servicer from engaging in certain conduct
or activity, including the following:
1. Defrauding or misleading a student loan borrower.
2. Engaging in an unfair or deceptive practice or misrepresenting or omitting
material information in connection with the servicing of a student education loan.
3. Misapplying student education loan payments.
4. Providing inaccurate information to a credit bureau related to a student loan
borrower's creditworthiness.
5. Refusing to communicate with an authorized representative of a student
loan borrower.
6. Failing to evaluate a student loan borrower for an income-based repayment
program prior to placing the student loan borrower in default.
The bill also specifies the authority of the office to conduct investigations and
examinations and take administrative action and also provides a private right of
action for violations of the requirements or prohibitions under the bill.
The bill requires the office to perform certain functions, including: 1) assisting
student loan borrowers; 2) receiving and attempting to resolve complaints from
student loan borrowers and others; 3) compiling and analyzing data about these
complaints; 4) assisting student loan borrowers in various ways; 5) providing
information to the public and others regarding the problems and concerns of student
loan borrowers; and 6) analyzing and monitoring the development and
implementation of laws and policies relating to student loan borrowers.
Although the bill exempts certain state-regulated financial service providers,
primarily state-chartered financial institutions, from licensing and most other
requirements applicable to student loan servicers, the bill requires these exempt
organizations to cooperate with the office and provide information requested by the
office necessary to investigate and resolve student loan borrower complaints.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
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SECTION 1. 15.01 (6) of the statutes, as affected by 2023 Wisconsin Act 20, is
amended to read:
15.01 (6) “Division," “bureau," “section," and “unit" means the subunits of a
department or an independent agency, whether specifically created by law or created
by the head of the department or the independent agency for the more economic and
efficient administration and operation of the programs assigned to the department
or independent agency. The office of credit unions and the office of the student loan
ombudsman in the department of financial institutions, the office of the inspector
general in the department of children and families, the office of the inspector general
in the department of health services, and the office of children's mental health in the
department of health services have the meaning of “division" under this subsection.
The office of the long-term care ombudsman under the board on aging and long-term
care and the office of educational accountability and the office of literacy in the
department of public instruction have the meaning of “bureau" under this
subsection.
SECTION 2. 15.02 (3) (c) 1. of the statutes is amended to read:
15.02 (3) (c) 1. The principal subunit of the department is the “division". Each
division shall be headed by an “administrator". The office of credit unions and the
office of the student loan ombudsman in the department of financial institutions and
the office of children's mental health in the department of health services have the
meaning of “division" and the director of credit unions in the department of financial
institutions and the director of the office of children's mental health in the
department of health services have the meaning of “administrator" under this
subdivision.
SECTION 3. 15.185 (6) of the statutes is created to read:
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15.185 (6) OFFICE OF THE STUDENT LOAN OMBUDSMAN. There is created in the
department of financial institutions an office of the student loan ombudsman.
SECTION 4. Subchapter V of chapter 224 [precedes 224.101] of the statutes is
created to read:
CHAPTER 224
SUBCHAPTER V
STUDENT LOANS
224.101 Definitions. In this subchapter:
(1) “Board” means the higher educational aids board.
(2) “Exempt organization” means the board or a state-regulated financial
service provider.
(3) “Licensee” means a person holding a license issued under this subchapter.
(4) “Office” means the office of the student loan ombudsman in the department.
(5) “Servicing" means doing all of the following:
(a) Receiving scheduled periodic payments from a student loan borrower
pursuant to the terms of a student education loan.
(b) Applying the payments of principal and interest and any other payments
with respect to the amounts received from a student loan borrower as may be
required pursuant to the terms of a student education loan.
(c) Performing other administrative services with respect to a student
education loan.
(6) “State-regulated financial service provider” means any of the following:
(a) A bank organized under ch. 221.
(b) A savings bank organized under ch. 214.
(c) A savings and loan association organized under ch. 215.
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(d) A credit union organized under ch. 186.
(e) A consumer lender licensed under s. 138.09.
(7) “Student education loan" means a loan that is extended to a student loan
borrower expressly for postsecondary education expenses or related expenses and
does not include open-end credit or any loan that is secured by real property.
(8) “Student loan borrower" means any of the following:
(a) A resident of this state who has received or agreed to pay a student
education loan.
(b) A person who shares legal responsibility with a resident under par. (a) for
repaying the student education loan.
(9) “Student loan servicer" means a person, wherever located, responsible for
the servicing of a student education loan, but does not include the board or any
state-regulated financial service provider.
224.102 Ombudsman services. The office shall do all of the following:
(1) Provide timely assistance to student loan borrowers.
(2) Receive, review, and attempt to resolve complaints from all of the following:
(a) Student loan borrowers.
(b) In collaboration with institutions of higher education, student loan
servicers and any other participants in student education loan lending, including
originators servicing their own student education loans.
(3) Compile and analyze data on student loan borrower complaints as
described in sub. (2) and as resolved under s. 224.104.
(4) Assist student loan borrowers in understanding their rights and
responsibilities under the terms of student education loans.
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(5) Provide information to the public, agencies, the legislature, and others
regarding the problems and concerns of student loan borrowers and make
recommendations for resolving those problems and concerns.
(6) Analyze and monitor the development and implementation of federal, state,
and local laws, ordinances, regulations, rules, and policies relating to student loan
borrowers and recommend any necessary changes.
(7) Review, as authorized and appropriate, the complete student education
loan history for a student loan borrower who provides written consent for the review.
(8) Provide sufficient outreach and disseminate information concerning the
availability of the office to assist student loan borrowers and potential student loan
borrowers, public institutions of higher education, student loan servicers, and any
other participants in student education loan lending with any student education
loan servicing concerns.
(9) Seek the assistance of an exempt organization in the resolution of a student
loan borrower complaint as described in sub. (2) involving that exempt organization.
The exempt organization shall cooperate with the office as required by s. 224.104.
(10) Take any other action necessary to fulfill the duties of the office as set forth
in this subchapter.
224.103 Annual report. The office shall submit a report by January 1 of each
year to the standing committee of each house of the legislature having jurisdiction
over matters related to higher education. The report shall include all of the
following:
(1) A description of actions taken with respect to the implementation of this
subchapter.
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(2) An assessment of the overall effectiveness of the office, including
information, in the aggregate, regarding student loan borrower complaints
investigated with the assistance of an exempt organization.
(3) Recommendations regarding additional steps for the department to gain
regulatory control over licensing and enforcement with respect to student loan
servicers.
224.104 Assistance by exempt organizations; report. (1) An exempt
organization that is requested by the office to provide assistance under s. 224.102 (9)
shall provide, in a timely manner, the information requested by the office necessary
to investigate and resolve a student loan borrower complaint, including the steps
taken by the exempt organization to resolve the complaint, or, on its own, shall
resolve, in a timely manner, the complaint and provide the office with documentation
regarding the resolution.
(2) Annually, an exempt organization that is involved in the resolution of a
complaint under this section shall report to the office the number of complaints
received and the number of complaints resolved by the exempt organization.
224.105 Licensing of student loan servicers. (1) A person, wherever
located, may not directly or indirectly engage in servicing student education loans
in this state without first obtaining a license from the office under this section, unless
the person is exempt from licensure under sub. (2).
(2) The following persons are exempt from the licensing requirement under
sub. (1):
(a) A state-regulated financial service provider.
(b) The board.
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(3) A person seeking to act within this state as a student loan servicer shall
make a written application to the office for an initial license in the form prescribed
by the office. The application shall be accompanied by all of the following:
(a) A financial statement prepared by a certified public accountant or a public
accountant, a general partner if the applicant is a partnership, a corporate officer if
the applicant is a corporation, or a member duly authorized to execute such
documents if the applicant is a limited liability company or association.
(b) Information regarding the history of criminal convictions of the following,
which information must be sufficient, as determined by the office, to make the
findings under sub. (4):
1. The applicant.
2. Officers, directors, and principal employees of the applicant.
3. Each individual shareholder, member, or partner who directly or indirectly
controls 10 percent or more of the ownership interests of the applicant.
(c) A nonrefundable license fee of $1,000.
(d) A nonrefundable investigation fee of $800.
(4) Upon the filing of an application for an initial license and the payment of
the fees for licensing and investigation under sub. (3), the office shall investigate the
financial condition and responsibility, financial and business experience, character,
and general fitness of the applicant. The office may conduct criminal history
background checks of the applicant and of each partner, member, officer, director,
and principal employee of the applicant. The office may issue a license if the office
finds all of the following to be true:
(a) The applicant's financial condition is sound.
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(b) The applicant's business will be conducted honestly, fairly, equitably,
carefully, and efficiently within the purposes and intent of this subchapter and in a
manner commanding the confidence and trust of the community.
(c) No person on behalf of the applicant has knowingly made an incorrect
statement of a material fact in the application or in any report or statement made
under this subchapter.
(d) The applicant has met any other requirements as determined by the office.
(5) A license issued under this section expires at the close of business on
September 30 of the odd-numbered year following its issuance, unless renewed or
earlier surrendered, suspended, or revoked. No later than 15 days after a licensee
ceases to engage in the business of student education loan servicing in this state for
any reason, including a business decision to terminate operations in this state,
license revocation, bankruptcy, or voluntary dissolution, the licensee shall provide
written notice of surrender to the office and shall surrender to the office its license
for each location in which the licensee has ceased to engage in such business. The
written notice of surrender shall identify the location where the records of the
licensee will be stored and the name, address, and telephone number of an individual
authorized to provide access to the records. The surrender of a license does not
reduce or eliminate the licensee's civil or criminal liability arising from acts or
omissions occurring prior to the surrender of the license, including any
administrative actions undertaken by the office.
(6) A license issued under this section may be renewed for the ensuing
24-month period upon the filing of an application containing all required documents
and fees as provided in this section. A renewal application shall be filed on or before
September 1 of the year in which the license expires. A renewal application filed with
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the office after September 1 that is accompanied by a $100 late fee is considered to
be timely and sufficient. If an application for a renewal license has been filed with
the office on or before the date the license expires, the license continues in effect until
the issuance by the office of the renewal license applied for or until the office has
notified the licensee in writing of the office's refusal to issue the renewal license
together with the grounds on which the refusal is based. The office may refuse to
issue a renewal license on any ground on which the office may refuse to issue an
initial license.
(7) An applicant or licensee under this section shall notify the office, in writing,
of any change in the information provided in the initial application for a license or
the most recent renewal application for a license, as applicable, not later than 10
business days after the occurrence of the event that results in the change.
(8) The office may consider an application for a license under this section
abandoned if the applicant fails to respond to any request for information required
under this subchapter or any rule promulgated under this subchapter, as long as the
office notifies the applicant, in writing, that the application will be considered
abandoned if the applicant fails to submit the information within 60 days after the
date on which the request for information is made. An application filing fee paid
prior to the date an application is abandoned under this subsection may not be
refunded. Abandonment of an application under this subsection does not preclude
the applicant from submitting a new application for a license under this section.
(9) A licensee may not act within this state as a student loan servicer under any
name or at any place of business other than that identified in the license. A licensee
may not change the location of the licensee's place of business without prior written
notice to the office. Not more than one place of business may be maintained under
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the same license, but the office may issue more than one license to a licensee that
complies with the provisions of this subchapter as to each license. A license is not
transferable or assignable.
(10) (a) A student loan servicer shall maintain adequate records of each
student education loan transaction. Except as otherwise required by federal law, a
federal student loan education agreement, or a contract between the federal
government and the student loan servicer, a student loan servicer shall maintain
these records for not less than 2 years following the final payment on the student
education loan or the assignment of the student education loan, whichever occurs
first.
(b) Upon request by the office, a student loan servicer shall make the records
under par. (a) available or shall send these records to the office by registered or
certified mail, return receipt requested, or by any express delivery carrier that
provides a dated delivery receipt, not later than 5 business days after requested by
the office to do so. The office may grant a licensee additional time to make these
records available or to send the records to the office.
(11) (a) The office may suspend, revoke, or refuse to renew a license issued
under this section if the office finds any of the following:
1. That the licensee has violated any provision of this subchapter, any rule
promulgated thereunder, or any lawful order of the office made thereunder.
2. That any fact or condition exists that, if it had existed at the time of the
original application for the license, clearly would have warranted a denial of the
license.
3. That the licensee made a material misstatement in an application for a
license or in information furnished to the office.
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4. That the licensee has failed to pay any fee required under this section.
(b) The office shall suspend a license issued under this section if the office finds
that the licensee is an individual who fails to comply, after appropriate notice, with
a subpoena or warrant issued by the department of workforce development or a
county child support agency under s. 59.53 (5) and related to paternity or child
support proceedings or who is delinquent in making court-ordered payments of child
or family support, maintenance, birth expenses, medical expenses, or other expenses
related to the support of a child or former spouse, as provided in a memorandum of
understanding entered into under s. 49.857. A licensee whose license is suspended
under this paragraph is entitled to a notice and hearing only as provided in a
memorandum of understanding entered into under s. 49.857 and is not entitled to
any other notice or hearing under this section.
(c) The office shall revoke a license issued under this section if the department
of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes.
A licensee whose license is revoked under this paragraph for delinquent taxes is
entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5)
(a) but is not entitled to any other notice or hearing under this section.
(d) The office shall revoke a license issued under this section if the department
of workforce development certifies under s. 108.227 that the licensee is liable for
delinquent unemployment insurance contributions. A licensee whose license is
revoked under this paragraph for delinquent unemployment insurance
contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and a hearing under
s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section.
(e) A person whose license has been suspended, revoked, or refused renewal
under this subsection may request a hearing under s. 227.44 within 30 days after the
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date of suspension, revocation, or refusal. The office may appoint a hearing examiner
under s. 227.46 to conduct the hearing. This paragraph does not apply to a
suspension or revocation under pars. (b) to (d).
(f) An abatement of the license fee may not be made if the license is suspended
or revoked under this subsection or surrendered in connection with a suspension or
revocation proceeding.
(12) All fees received by the office under this section shall be credited to the
appropriation account under s. 20.144 (1) (g).
224.106 Student loan servicers. (1) In this section, “nonconforming
payment" means a payment on a student education loan that is different from the
required payment.
(2) (a) Except as otherwise provided in federal law, a federal student education
loan agreement, or a contract between the federal government and a student loan
servicer, a student loan servicer shall comply with the requirements of this
subsection.
(b) A student loan servicer shall respond to a written inquiry from a student
loan borrower or the representative of a student loan borrower within 30 days after
receiving the inquiry.
(c) Upon receipt of a nonconforming payment on a student education loan, a
student loan servicer shall do all of the following:
1. Ask the student loan borrower how the student loan borrower prefers the
student loan servicer to apply the nonconforming payment.
2. Note how the student loan borrower prefers the student loan servicer to
apply the nonconforming payment.
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3. Apply the nonconforming payment in the manner preferred by the student
loan borrower.
4. Until the student loan borrower indicates otherwise, apply any future
nonconforming payments in the same manner preferred by the student loan
borrower as noted under subd. 2.
(d) If there is a sale, assignment, or other transfer of the servicing of a student
education loan that results in a change in the identity of the person to whom a
student loan borrower is required to send payments or direct any communication
concerning the student education loan, all of the following apply:
1. As a condition of the sale, assignment, or transfer, the student loan servicer
shall require the new student loan servicer to honor all benefits originally
represented as available to the student loan borrower during the repayment of the
student education loan and preserve the availability of these benefits, including any
benefits for which the student loan borrower has not yet qualified.
2. Within 45 days after the sale, assignment, or transfer, the student loan
servicer shall transfer to the new student loan servicer all information regarding the
student loan borrower, the account of the student loan borrower, and the student
education loan of the student loan borrower, including the repayment status of the
student loan borrower and any benefits associated with the student education loan.
3. The sale, assignment, or transfer of the servicing of the student education
loan shall be completed at least 7 days before the next payment on the student
education loan is due.
(e) A student loan servicer that obtains the right to service a student education
loan shall adopt policies and procedures to verify that the student loan servicer has
received all information regarding the student loan borrower, the account of the
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student loan borrower, and the student education loan of the student loan borrower,
including the repayment status of the student loan borrower and any benefits
associated with the student education loan.
(3) A student loan servicer may not do any of the following:
(a) Directly or indirectly employ a scheme, device, or artifice to defraud or
mislead any student loan borrower.
(b) Engage in an 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 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 student loan borrower's obligations
under the loan.
(c) Obtain property by fraud or misrepresentation.
(d) Misapply student education loan payments to the outstanding balance of
a student education loan.
(e) Provide inaccurate information to a credit bureau, thereby harming the
determination of a student loan borrower's creditworthiness.
(f) Fail to report both the favorable and unfavorable payment history of a
student loan borrower to a nationally recognized consumer credit bureau at least
annually if the student loan servicer regularly reports information to such a credit
bureau.
(g) Refuse to communicate with an authorized representative of a student loan
borrower who provides a written authorization signed by the student loan borrower,
except that the student loan servicer may adopt procedures reasonably related to
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verifying that the representative is in fact authorized to act on behalf of the student
loan borrower.
(h) Make any false statement or omit a material fact in connection with
information or reports filed with a governmental agency or in connection with an
investigation conducted by the office or another governmental agency.
(i) Fail to evaluate a student loan borrower for an income-based repayment
program prior to placing the student loan borrower in forbearance or default, if an
income-based repayment program is available to the student loan borrower.
(j) Violate any applicable federal law or regulation relating to student
education loan servicing, including the federal Truth in Lending Act, 15 USC 1601
to 1667f, and regulations adopted under that act.
(4) (a) A student loan borrower injured by violation of this section may bring
an action in any court of competent jurisdiction and recover the damages, fees, and
penalties set forth in par. (b).
(b) A student loan servicer that fails to comply with any requirement imposed
under this section with respect to a student loan borrower is liable in an amount
equal to the sum of all of the following:
1. Any actual damages sustained by the student loan borrower as result of the
violation.
2. If the student loan borrower establishes by a preponderance of the evidence
that the violation was willful or intentional, a monetary award equal to 2 times the
amount of actual damages.
3. In the case of any successful action by the student loan borrower to enforce
the liability set out in this paragraph, the costs of the action, together with
reasonable attorney fees, as determined by the court.
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(c) For purposes of par. (b), actual damages includes damages caused by
emotional distress or mental anguish with or without accompanying physical injury
proximately caused by a violation of this section.
(d) The remedies provided in this subsection do not preclude the availability
of other remedies that may be available to a student loan borrower.
224.107 Office powers and duties. (1) The office may conduct
investigations and examinations as follows:
(a) For purposes of initial licensing, renewal, suspension, or revocation or of
investigation to determine compliance with this subchapter, the office may access,
receive, and use any books, accounts, records, files, documents, information, or
evidence belonging to a licensee or person under examination, including any of the
following:
1. Criminal, civil, and administrative history information.
2. Personal history and experience information, including independent credit
reports obtained from a consumer reporting agency, as defined in 15 USC 1681a.
3. Any other documents, information, or evidence the office considers relevant
to the inquiry or investigation regardless of the location, possession, control, or
custody of the documents, information, or evidence.
(b) For the purposes of investigating violations or complaints arising under this
subchapter or of examination, the office may review, investigate, or examine any
licensee or person subject to this subchapter as often as necessary in order to carry
out the purposes of this subchapter. The office may direct, subpoena, or order the
attendance of and examine under oath any person whose testimony may be required
about the student education loan or the business or subject matter of the
examination or investigation and may direct, subpoena, or order the person to
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produce books, accounts, records, files, and any other documents the office considers
relevant to the inquiry.
(c) In making an examination or investigation authorized by this section, the
office may control access to any documents and records of the licensee or person
under examination or investigation. The office may take possession of the
documents and records or place a person in exclusive charge of the documents and
records in the place where they are usually kept. During the period of control, a
person may not remove or attempt to remove any of the documents and records
except pursuant to a court order or with the consent of the office. Unless the office
has reasonable grounds to believe the documents or records of the licensee or person
have been, or are at risk of being, altered or destroyed for purposes of concealing a
violation of this subchapter, the licensee or owner of the documents and records may
have access to the documents or records as necessary to conduct its ordinary business
affairs.
(d) In order to carry out the purposes of this section, the office may do any of
the following:
1. Retain attorneys, accountants, or other professionals and specialists as
examiners, auditors, or investigators to conduct or assist in the conduct of
examinations or investigations.
2. Enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory
burden by sharing resources, standardized or uniform methods or procedures, and
documents, records, information, or evidence obtained under this section.
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3. Use, hire, contract for, or employ public or privately available analytical
systems, methods, or software to examine or investigate the licensee or person
subject to this subchapter.
4. Accept and rely on examination or investigation reports made by other
government officials, within or outside this state.
5. Accept audit reports made by an independent certified public accountant for
the licensee or person subject to this subchapter in the course of that part of the
examination covering the same general subject matter as the audit and may
incorporate the audit report in a report of examination, report of investigation, or
other writing of the office.
(e) A licensee or person subject to investigation or examination under this
section may not knowingly withhold, abstract, remove, mutilate, or destroy any
books, physical records, computer records, or other information relating to
information regulated under this subchapter.
(f) The costs of an investigation conducted by the office shall be paid by the
licensee or person being investigated. Funds received by the office under this
paragraph shall be credited to the appropriation account under s. 20.144 (1) (g).
(2) The office may do any of the following to address a violation of this
subchapter, any rule promulgated under this subchapter, or any order issued under
this subchapter:
(a) Issue an order requiring a student loan servicer to cease and desist from a
violation, to correct the conditions resulting from the violation, and to take actions
to prevent such violations in the future. As part of the order, the office may require
the student loan servicer to reimburse persons injured by the violation. A student
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loan servicer that violates an order issued under this paragraph shall, for each
violation, forfeit not more than $1,000 per day for each day the violation continues.
(b) Commence administrative proceedings on its own initiative, or commence
civil actions through the department of justice, to restrain by temporary or
permanent injunction a person from violating this subchapter, to recover any fees or
penalties owed under this subchapter, or to seek relief available under this
subchapter on behalf of student loan borrowers.
(c) Suspend, revoke, or refuse to renew a license issued under s. 224.105 as
provided in s. 224.105 (11).
(3) The office may promulgate rules to implement this subchapter.
SECTION 5.0Nonstatutory provisions.
(1) (a) No later than the 90th day after the effective date of this paragraph, the
department of financial institutions shall determine whether it can fully implement
the provisions created in this act as subch. V of ch. 224 by the 90th day after the
effective date of this paragraph, and shall provide notice of this determination to the
legislative reference bureau by that date.
(b) If the notice of the department of financial institutions under par. (a) states
that the department cannot fully implement the provisions created in this act as
subch. V of ch. 224 by the 90th day after the effective date of this paragraph, the
department shall provide notice to the legislative reference bureau of the date on
which the provisions created in this act as subch. V of ch. 224 will be fully
implemented, which date may not be later than January 1, 2025, and the legislative
reference bureau shall publish a notice in the Wisconsin Administrative Register
that specifies this date.
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SECTION 6.0Effective dates. This act takes effect on the day after publication,
except as follows:
(1) The treatment of ss. 15.01 (6), 15.02 (3) (c) 1., and 15.185 (6) and subch. V
of ch. 224 takes effect on the 90th day after the day of publication, or on the date
specified in the notice published in the Wisconsin Administrative Register under
SECTION 5 (1) (b) of this act, whichever is later.
(END)
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