HB 17-1352

HB 17-1352 is a Colorado law that requires companies servicing federal student loans to get a special license before they can operate in the state. This means these companies must be approved by the administrator of the 'Uniform Consumer Credit Code' to handle tasks like collecting payments and managing borrower accounts. The law went into effect on September 1, 2018, meaning that as of this date, all student loan servicers must comply with these licensing requirements in Colorado. This impacts both the companies servicing loans and borrowers who are dealing with these services within the state.

Official Summary

Section 2 of the bill requires an entity that services a student education loan pursuant to a contract with the federal government to be licensed by the administrator of the 'Uniform Consumer Credit Code'. 'Servicing' means receiving a scheduled periodic payment from a student loan borrower, applying the payments of principal and interest with respect to the amounts received from a student loan borrower, and similar administrative services. Section 4 makes the bill effective on September 1, 2018.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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