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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7359 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 7359
To provide a framework for the Bureau of Consumer Financial Protection
and the Department of Education to coordinate in providing assistance
to and serving borrowers seeking to resolve complaints related to their
private education or Federal student loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 14, 2024
Ms. Porter (for herself, Ms. Bonamici, Mr. Sarbanes, and Mrs. Hayes)
introduced the following bill; which was referred to the Committee on
Education and the Workforce, and in addition to the Committees on
Financial Services, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide a framework for the Bureau of Consumer Financial Protection
and the Department of Education to coordinate in providing assistance
to and serving borrowers seeking to resolve complaints related to their
private education or Federal student loans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``CFPB Student Loan Integrity and
Transparency Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agency.--The term ``agency'' means the Bureau or the
Department, as applicable, and the term ``agencies'' means both
the Bureau and the Department.
(2) Bureau.--The term ``Bureau'' means the Bureau of
Consumer Financial Protection.
(3) Complaint.--The term ``complaint'' means a comment,
inquiry, or request for assistance from a student loan
borrower.
(4) Department.--The term ``Department'' means the
Department of Education.
(5) Director.--The term ``Director'' means the Director of
the Bureau.
(6) Federal consumer financial law.--The term ``Federal
consumer financial law'' has the meaning given that term under
section 1002 of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5481).
(7) Institution of higher education.--The term
``institution of higher education'' has the meaning given that
term under section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(8) Nonpublic information.--The term ``nonpublic
information'' means--
(A) confidential information, as such term is
defined under section 1070.2 of title 12, Code of
Federal Regulations;
(B) any information collected by the Department
from persons engaged in student financial services
activities pursuant to the Department's oversight and
other authorities that is not publicly available; and
(C) the name, address, or other personally
identifiable information relating to any consumer,
including any information so designated by a provider
of information.
(9) Private education loan.--The term ``private education
loan'' has the meaning given that term under section 140(a) of
the Truth in Lending Act (15 U.S.C. 1650(a)).
(10) Provider.--With respect to information shared between
the agencies, the term ``provider'' means the agency providing
the information to the other agency.
(11) Receiver.--With respect to information shared between
the agencies, the term ``receiver'' means the agency receiving
the information from the other agency.
(12) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(13) Student financial services.--The term ``student
financial services'' means consumer financial products or
services (as defined under section 1002 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5481)) that are
related to students of institutions of higher education,
including student loan origination and student loan servicing.
(14) Title iv loans.--The term ``title IV loans'' means
loans made, insured, or guaranteed under title IV of the Higher
Education Act of 1965.
SEC. 3. COOPERATION BETWEEN THE BUREAU AND THE DEPARTMENT.
(a) In General.--The Director and the Secretary shall--
(1) establish points of contact between the Bureau and the
Department with respect to Bureau supervision and Department
oversight matters that are of common jurisdiction to both the
Bureau and the Department;
(2) share with each other the Bureau's schedule of
examinations and the Department's schedule of reviews of
persons engaged in offering or providing student financial
services that are subject to the Bureau's supervisory authority
and the Department's oversight authority;
(3) coordinate the Bureau's supervision activities and the
Department's oversight activities to promote the efficient use
of resources;
(4) meet at least quarterly to discuss observations about
the nature of complaints received by the Bureau and the
Department, characteristics of borrowers, and available
information about resolution of complaints, as well as analysis
and recommendations; and
(5) work to ensure the Bureau and the Department understand
the respective reporting categories and definitions of each
agency and how such categories and definition relate to each
other for comparison.
(b) Sharing of Information.--
(1) Bureau access to department databases.--For the purpose
of the Bureau's congressional reporting, research, market
analysis, complaint resolution, enforcement, supervision,
financial education, engagement, and rulemaking needs, the
Secretary shall work with the Bureau to provide the Bureau with
access to Department databases, as applicable.
(2) Consumer complaints.--
(A) Bureau access to department consumer
complaints.--The Director may request and obtain
information from the Secretary concerning consumer
complaints and other information pertaining to specific
entities or classes of entities that are relevant to
the exercise of the Bureau's supervisory, enforcement,
or regulatory functions.
(B) Sharing of student loan borrower complaints.--
(i) In general.--The Director and the
Secretary shall transfer each complaint
received by their agency from student loan
borrowers to the other agency.
(ii) Deadline for sharing certain
complaints.--With respect to a complaint
received by the Bureau related to the
origination, disbursement, or servicing of a
title IV loan or a complaint received by the
Department related to a private education loan,
the applicable agency shall direct the
complaint to the other agency within 10 days of
receipt of the complaint.
(C) Addressing complaints related to defaulted
title iv loans.--The Director and the Secretary shall
establish an efficient collaborative process to address
complaints received by the Bureau about private
collection agency actions related to defaulted title IV
loans.
(D) Standards for the format and sharing of
complaint data.--
(i) Format.--In providing complaint data
described under this paragraph, the Director
and the Secretary shall provide the complaint
data in a secure, digital format.
(ii) Process.--The Director and the
Secretary shall establish an efficient, secure,
and legally compliant process to provide
complaint data.
(3) Certain tax return information.--Section 6103(l)(13)(D)
of the Internal Revenue Code of 1986 is amended by adding at
the end the following:
``(vii) Redisclosure to the bureau of
consumer financial protection.--Authorized
persons may redisclose return information
received under subparagraph (C) to the Director
of the Bureau of Consumer Financial Protection
to the extent necessary to carry out the
oversight activities of the Bureau of Consumer
Financial Protection.''.
(4) Other information.--In addition to the information
permitted to be shared under this section, the Director and the
Secretary may share any other information with each other as
the Director and the Secretary determine appropriate.
(5) Amendment to title 5.--Section 552a(b) of title 5,
United States Code, is amended--
(A) in paragraph (11), by striking ``or'' at the
end;
(B) in paragraph (12), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(13) a disclosure between the Secretary of Education and
the Director of the Bureau of Consumer Financial Protection
authorized under the CFPB Student Loan Integrity and
Transparency Act.''.
(6) Data privacy.--
(A) Memorandum of understanding.--The Director and
the Secretary shall enter into one or more memoranda of
understanding to address data privacy issues related to
information shared between the Bureau and the
Department pursuant to this Act.
(B) Safeguarding nonpublic information.--The
Director and the Secretary shall establish and maintain
such safeguards as are necessary and appropriate to
protect the confidentiality of any nonpublic
information received by their agency pursuant to this
Act (as well as any derived information), including--
(i) restricting access to the nonpublic
information to only those of officers,
employees, and contractors who have a need for
such information to carry out the receiver's
responsibilities under applicable law;
(ii) informing those persons who are
provided access to the nonpublic information of
their responsibilities under this Act; and
(iii) ensuring that the nonpublic
information is protected in accordance with the
standards applicable to Federal agencies for
protection of the privacy and confidentiality
of personally identifiable information and for
data security and integrity.
(c) Handling of Complaints by the Bureau.--The Director shall--
(1) accept complaints related to private education loans
and the servicing of title IV loans; and
(2) process such complaints, including, where appropriate,
providing the complaints to the applicable servicer and
providing any response from the servicer to the borrower, in
accordance with section 1034 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5534).
(d) Title IV Loan Servicer Requirement.--The Secretary may not
enter into an agreement with a contractor or vendor for the servicing
of title IV loans unless the contractor or vendor, as part of that
agreement, agrees to provide the Bureau, upon request, any information
that the contractor or vendor is required to provide the Department.
(e) Responsibilities of the Agencies by Type of Complaint.--
(1) Complaints regarding the title iv loan programs.--With
respect to complaints regarding the title IV loan programs, the
Department is responsible for--
(A) program issue resolution;
(B) attempting to resolve such complaints; and
(C) as appropriate, discussing such complaints with
the Bureau regarding the impact, if any, on Federal
consumer financial law.
(2) Complaints regarding title iv loans with federal
consumer financial law issues.--
(A) In general.--With respect to complaints
regarding title IV loans with Federal consumer
financial law issues--
(i) the Department shall collaborate with
the Bureau;
(ii) the Bureau is responsible for
providing the Department with expertise,
analysis, and recommendations regarding
resolution consistent with Federal consumer
financial law; and
(iii) the Department is responsible for
attempting to resolve informally such
complaints, in accordance with section
141(f)(3)(A) of the Higher Education Act of
1965 (20 U.S.C. 1018(f)(3)(A)), with the
Bureau's input.
(B) Interagency process to discuss, track, and
resolve complaints.--The Director and the Secretary
shall determine an efficient process to--
(i) discuss and track complaints related to
both a title IV loan and a private education
loan; and
(ii) collaborate, where possible, to
attempt to resolve such complaints, including
through the use of the ombudsmen established
under section 1035 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5535) and
section 141(f) of the Higher Education Act of
1965 (20 U.S.C. 1018(f)).
(3) Complaints regarding private education loans with
federal consumer financial law issues.--With respect to
complaints regarding private education loans, the Bureau is
responsible for--
(A) attempting to resolve informally such
complaints, in accordance with section 1035(c)(1) of
the Consumer Financial Protection Act of 2010 (12
U.S.C. 5535(c)(1)); and
(B) as appropriate, discussing issues with the
Department regarding products offered by institutions
of higher education or to students or prospective
students, or other issues that may impact Federal
programs overseen by the Department.
(f) Payment of Costs.--
(1) In general.--The Bureau and the Department shall each
bear its own costs of complying with this Act.
(2) Interagency agreement for transfer of funds.--If funds
are transferred between the Bureau and the Department for the
provision of goods or services authorized by this Act,
including access to Department databases described under
subsection (b)(1), such transfer shall be accomplished by a
separate interagency agreement.
(g) Rules of Construction.--
(1) Nothing in this Act may be construed to limit the
existing authorities of the Bureau or the Department.
(2) Nothing in this Act may be construed to prohibit the
Bureau or the Department from entering into memoranda of
understanding to establish additional policies and procedures
related to the requirements of this Act.
(3) Nothing in this Act may be construed to prevent an
agency from complying with a legally valid or enforceable order
of a court of competent jurisdiction, or, if compliance is
compulsory, with a request or demand from a duly authorized
committee of the United States Senate or House of
Representatives.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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