SB 669

Abstract

Amends the Debt Settlement Consumer Protection Act. Adds student loan borrowers to the definition of "consumer". Adds to the definition of "debt settlement provider" any person or entity engaging in, or holding itself out as engaging in, or any person who solicits for or acts on behalf of such person or entity engaging in or holding itself out as engaging in, the business of student loan debt relief services in exchange for any fee or compensation assessed against or charged to a consumer. Excludes institutions of higher education from the definition of "debt settlement provider". Defines other terms. Requires a specified notice and disclosure to student loan borrowers to be included in advertising and marketing communications concerning student loan debt relief services. Requires providers of student loan debt relief services to provide a specified notice and disclosure before a student loan borrower signs a contract. Provides that any fees charged to a student loan borrower in exchange for student loan debt relief shall comply with a provision concerning fees. Makes other changes. Effective immediately. Senate Committee Amendment No. 2 Adds reference to: 225 ILCS 429/145 Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: Provides that "debt settlement service" does not include the services of any other originator, guarantor, or servicer of federal education loans or private education loans (rather than federal education loans). Provides that "student loan borrower" includes a parent, grandparent, or other family member who has received or agreed to pay a student loan for a family member receiving the education or any co-signer who has agreed to share responsibility for repaying a student loan with the person receiving the education. Further amends the Debt Settlement Consumer Protection Act. Provides that a debt settlement provider shall not advise or represent, expressly or by implication, that consumers should stop communicating with their creditors, lenders, loan servicers, loan guarantors, or attorneys or government entities (rather than creditors). Provides that a debt settlement provider shall not advise or represent, expressly or by implication, that consumers should stop making payments to their creditors, lenders, loan servicers, loan guarantors, or attorneys or government entities (rather than creditors). Provides that a debt settlement provider shall not access or obtain a consumer's or student loan borrower's federal student aid information in violation of federal law. Effective immediately.