Ga. Comp. R. & Regs. R. 80-14-6-.02 - Installment Loan Servicing Standards

(1) The standards set forth in this Rule apply only to persons licensed or required to be licensed under Chapter 3 of Title 7 of the Official Code of Georgia Annotated as installment lenders that act as installment loan servicers.

(2) Any person who acts as an installment loan servicer:

(a) Shall act with reasonable skill, care, and diligence;

(b) Shall not charge fees for:

1. Handling borrower disputes;

2. Facilitating routine borrower collections;

3. Arranging repayment plans;

4. Sending borrowers notice of nonpayment; and

5. Updating records to reinstate an installment loan.

(c) Shall have an error resolution process for all borrowers, which must, at a minimum:

1. Acknowledge receipt of a borrower's notice of error within 10 business days of receipt;

2. Conduct a reasonable investigation; and

3. Within 45 days, provide a borrower with a written notification of:

(i) the correction of error; or

(ii) the installment loan servicer's determination that no error occurred and the reason for such determination.

(4) Each installment loan servicer shall, at the time the installment loan servicer acquires the right to service the installment loan, make the following initial disclosures in writing to borrowers:

(a) A complete and current schedule of fees;

(b) The name, address, and an email address or toll-free telephone number for an employee or department of the installment loan servicer that can be contacted by the borrower regarding servicing; and

(c) A statement of the installment loan servicer standards set forth in Paragraph (2) of this Rule including a description of the installment loan servicer's error resolution process as required by Paragraph (2)(c).

(5) If an installment loan servicer discovers a violation of these standards, the installment loan servicer:

(a) Has a duty to mitigate the harm to the borrower; and

(b) Shall maintain a record of such violation in accordance with Rule 80-14-6-.03(1)(b).

(6) Loans that a licensee has purchased or otherwise acquired through one of the methods provided at O.C.G.A. § 7-3-32(f), or by way of acquisition of a branch office that has been approved by the Department pursuant to O.C.G.A. § 7-3-32(c), are exempt from the requirements of this Rule so long as such acquired loans are serviced according to their underlying terms.

(7) Failure to adhere to these standards may result in revocation of the license and will subject the licensee to fines in accordance with regulations prescribed by the Department, including Rule Chapter 80-14-3.

Notes

Ga. Comp. R. & Regs. R. 80-14-6-.02

O.C.G.A. § 7-3-51.

Original Rule entitled "Installment Loan Servicing Standards" adopted. F. July 7, 2023; eff. July 27, 2023.