Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › STUDENT EDUCATION LOAN SERVICING REQUIREMENTS › Section 208-620-950 - Servicing student education loans-General requirements

Current through Register Vol. 24-14, July 15, 2024
(1) Other applicable laws, regulations, and
				programs. A violation of an applicable state or federal law, regulation, or
				program is a violation of this act. In addition to complying with all other
				provisions of this act and rules, you must comply with the following: All
				applicable federal program requirements.
(2) Communications. If the student education
				loan borrower did not provide authorization for electronic communications
				during the origination process, you must provide the borrower with a specific,
				separate document seeking the borrower's authorization to receive all
				communications electronically. If the borrower responds affirmatively
				(agreeing), you must retain the borrower's agreement to receive electronic
				communications.
(3) Payment
				processing and fees.
(a) You must assess any
				incurred fees to a borrower's account within forty-five days of the date on
				which the fee was incurred. You must clearly and conspicuously explain the fee
				in a statement mailed to the borrower at the borrower's last known address no
				more than thirty days after assessing the fee. If you provide monthly or more
				frequent statements that include this information, you are not required to
				provide the information in a notice in addition to the monthly or more frequent
				statement. You may also provide the information via email if the borrower has
				assented to receive electronic communications.
(b) You must accept and credit, or treat as
				credited, all amounts received within one business day of receipt when the
				borrower has made the payment to the address where instructed, provided that
				the borrower has provided sufficient information to credit the account. If you
				use the scheduled method of accounting, any regularly scheduled payment made
				prior to the scheduled due date must be credited no later than the due date.
				You must apply the payment as specified in the loan documents. If you are in
				compliance with an applicable federal program, you are deemed in compliance
				with this subsection.
(c) You must
				notify the borrower if a payment is received but not credited, or treated as
				credited. You must mail the notification to the borrower within ten business
				days by mail at the borrower's last known address. The notification must
				identify the reason the payment was not credited or treated as credited to the
				account, as well as any actions the borrower must take to make the student
				education loan current. If you provide monthly or more frequent statements that
				include this information, you are not required to provide the information in a
				notice in addition to the monthly or more frequent statement. You may also
				provide the information via email if the borrower has assented to receive
				electronic communications.