California AB866 clarifies definitions related to student loan servicing under state law.

California AB866 amends the Financial Code to redefine certain terms related to student loan servicing. It specifies that a student loan servicer is considered a person under the Unfair Competition Law and a student loan is a debt under the Rosenthal Fair Debt Collection Practices Act. Additionally, it defines a transaction giving rise to a student loan as a consumer credit transaction. The bill also notes that no reimbursement is required by local agencies or school districts due to the nature of the changes.

California AB866 clarifies definitions related to student loan servicing under state law.

California AB866 amends the Financial Code to redefine certain terms related to student loan servicing. It specifies that a student loan servicer is considered a person under the Unfair Competition Law and a student loan is a debt under the Rosenthal Fair Debt Collection Practices Act. Additionally, it defines a transaction giving rise to a student loan as a consumer credit transaction. The bill also notes that no reimbursement is required by local agencies or school districts due to the nature of the changes.