19CB71EC7F474AAB872583AD0076B55D Hearing Summary

Senator Winter, bill sponsor, described Senate Bill 19-002.  The bill authorizes the Department of Law to regulate student education loan servicers. Senator Fenberg, bill sponsor, was also present.  The bill sponsors passed a document around to the committee (Attachment B) listing complaints against loan servicers, and responded to questions from the committee regarding those complaints, licensure requirements implemented by the bill, and loan forgiveness programs.

The bill sponsors responded to a further question from the committee regarding the state's ability to assess fines over loan servicers.

Gabrielle Healy, representing herself, testified in support of the bill.  Ms. Healy responded to a question from the committee regarding her experience with student loans.  The bill sponsors responded to questions from the committee regarding the authority the bill bestows upon the ombudsman.  Ms. Healy responded to a further question from the committee regarding to her experience with student loans.

Jen Waller, Colorado Bankers Association, testified in support of the bill.

Kurt Morrison, Office of the Attorney General, testified in support of the bill responded to questions from the committee regarding remedial action the attorney general can take in response to consumer complaints, the interaction of student debt and bankruptcy, and the impact of the bill on federal student debt.  Senator Winter made comments on the bill.  Mr. Morrison responded to questions from the committee regarding why the bill was located with the Attorney General's office and the relationship between fraudulent loan servicers and the magnitude of student debt.

The bill sponsors responded to questions from the committee regarding the magnitude of complaints received relative to the number of borrowers, market competition in this industry, and the validity of complaints.

The bill sponsors distributed amendment L.003 (Attachment C) that clarifies rules and definitions.

Bill sponsors made closing comments on the bill. Committee members made closing comments on the bill.