Section 26-602 - Prohibited activities and other responsibilities of student loan servicer(a) Except as otherwise required by federal law or a court order, a student loan servicer may not: (1) Employ, directly or indirectly, any scheme, device, or artifice to mislead a student loan borrower;(2) Engage in any unfair, abusive, or deceptive trade practice toward any person;(3) Misrepresent information or omit any material information in connection with the servicing of a student education loan, including:(i) Any fee owed by a student loan borrower;(ii) Any payment due by a student loan borrower;(iii) The appropriateness or availability of a student loan borrower's repayment options;(iv) The terms and conditions of the student education loan; and(v) The student loan borrower's obligations under the student education loan;(4) Obtain property by misrepresentation of fact or omission of material fact;(5) On or after February 1, 2020, allocate a nonconforming payment in a manner other than as directed by the student loan borrower if, in writing or electronically, the student loan borrower: (i) Makes a one-time direction for the allocation of future payments;(ii) Directs an allocation of a payment at the time the payment is made;(iii) Directs an allocation in response to an inquiry by the student loan servicer; or(iv) Changes an existing direction for the allocation of future payments;(6) Knowingly or recklessly misapply, or refuse to correct a misapplication of a payment from a student loan borrower;(7) Knowingly or recklessly provide inaccurate information to a consumer reporting agency, or refuse to correct inaccurate information provided to a consumer reporting agency;(8) If a student loan servicer regularly reports information to a consumer reporting agency, fail to report the favorable history of a student loan borrower to a nationally recognized consumer reporting agency at least once a year;(9) Subject to subsection (b) of this section, refuse to communicate with an authorized representative of a student loan borrower who provides a written authorization signed by the student loan borrower;(10) Negligently make a false statement or omit a material fact in connection with any information report filed with, or any investigation conducted by, a state or local government agency; or(11) Violate any federal law concerning student education loan servicing.(b) A student loan servicer may adopt procedures to verify that an authorized representative of a student loan borrower is, in fact, authorized to act on behalf of the student loan borrower.(c)(1) A student loan servicer shall acknowledge receipt of a written inquiry or complaint from a student loan borrower or the authorized representative of a student loan borrower within 10 days after receiving the inquiry or complaint.(2) Unless a response to the written inquiry is included in the acknowledgment required under paragraph (1) of this subsection, a student loan servicer shall provide information responding to a written inquiry or complaint received under paragraph (1) of this subsection within 30 days after receiving the inquiry or complaint.(3) If a written inquiry or complaint received under paragraph (1) of this subsection relates to a student loan borrower's account balance, the information provided under paragraph (2) of this subsection shall:(i) State that the student loan servicer has corrected the account balance; or(ii) Explain why the student loan servicer believes that the student loan borrower's account is correct.(d) If a student loan borrower requests a document concerning the account of the student loan borrower that is in the possession or control of a student loan servicer, the student loan servicer shall provide the document within 30 days after receiving the request.Amended by 2021 Md. Laws, Ch. 109,Sec. 1, eff. 4/13/2021.Added by 2019 Md. Laws, Ch. 546,Sec. 1, eff. 10/1/2019.