Sec. 5-5. General provisions.
143 words·~1 min read·
/il/chapter-110/act-992/5-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 5-5. General provisions.
(a)A servicer shall not engage in any unfair or deceptive practice toward any borrower or cosigner or misrepresent or omit any material information in connection with the servicing of a student loan, including, but not limited to, misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the student loan agreement, or the borrower's or cosigner's obligations under the student loan or the terms of any repayment plans.
(b)A servicer shall not misapply payments made by a borrower to the outstanding balance of a student loan.
(c)A servicer shall oversee third parties, including subservicers, debt collectors, independent contractors, subsidiaries, affiliates, or other agents, to ensure that those companies comply with this Article 5 when working on behalf of the servicer.