Sec. 602. Rehabilitation of private education loans
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Section 623(a)(1) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(1) ) is amended by adding at the end the following: Notwithstanding any other provision of this section, a consumer may request a financial institution to remove from a consumer report a reported default regarding a private education loan, and such information shall not be considered inaccurate, if— the financial institution chooses to offer a loan rehabilitation program which includes, without limitation, a requirement of the consumer to make consecutive on-time monthly payments in a number that demonstrates, in the assessment of the financial institution offering the loan rehabilitation program, a renewed ability and willingness to repay the loan; and the requirements of the loan rehabilitation program described in subclause
(I)are successfully met. If a financial institution is supervised by a Federal banking agency, the financial institution shall seek written approval concerning the terms and conditions of the loan rehabilitation program described in clause
(i)from the appropriate Federal banking agency. An appropriate Federal banking agency shall provide feedback to a financial institution within 120 days of a request for approval under subclause (I). A consumer may obtain the benefits available under this subsection with respect to rehabilitating a loan only 1 time per loan. Nothing in this subparagraph may be construed to require a financial institution to offer a loan rehabilitation program or to remove any reported default from a consumer report as a consideration of a loan rehabilitation program, except as described in clause (i). For purposes of this subparagraph— the term appropriate Federal banking agency has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and the term private education loan has the meaning given the term in section 140(a) of the Truth in Lending Act ( 15 U.S.C. 1650(a) ). . The Comptroller General of the United States shall conduct a study, in consultation with the appropriate Federal banking agencies, regarding— the implementation of subparagraph
(E)of section 623(a)(1) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(1) ) (referred to in this paragraph as the provision ), as added by subsection (a); the estimated operational, compliance, and reporting costs associated with the requirements of the provision; the effects of the requirements of the provision on the accuracy of credit reporting; the risks to safety and soundness, if any, created by the loan rehabilitation programs described in the provision; and a review of the effectiveness and impact on the credit of participants in any loan rehabilitation programs described in the provision and whether such programs improved the ability of participants in the programs to access credit products. Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that contains all findings and determinations made in conducting the study required under paragraph (1).
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- 15 USC 1681s–2(a)(1)
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