{"data":{"id":"us-ky/krs-286.12-080","jurisdiction":"us-ky","citation":"KRS 286.12-080","heading":"Prohibited practices.","body":"(1) As used in this section, \"consumer reporting agency\" means a consumer reporting\nagency that compiles and maintains files on a nationwide basis as defined in the\nFair Credit Reporting Act, 15 U.S.C. sec. 1681a(p).\n(2) A student education loan servicer shall  not engage in abusive acts or practices,\nincluding but not limited to acts or practices that:\n(a) Materially interfere with the ability of a borrower to clarify a term or condition\nof a student education loan; or\n(b) Fail to educate and inform the borrower of any of the following:\n1. The material risks, costs, or conditions of a student education loan;\n2. Selecting or using a student education loan or a feature, term, or\ncondition of a student education loan; or\n3. Accurate and relevant information related  to loan payments of the loans\nserviced by the servicer.\n(3) A student education loan servicer shall not:\n(a) Employ any scheme, device, or artifice to defraud or mislead a borrower;\n(b) Engage in any unfair, deceptive, or predatory practice toward any bor rower or\nmisrepresent or omit any material information in connection with servicing a\nstudent education loan, including but not limited to:\n1. Misrepresenting the:\na. Amount, nature, or terms of any fee or payment due or claimed to\nbe due on a student education loan;\nb. Terms and conditions of the student education loan agreement or\nany modification to the agreement; or\nc. Borrower's obligations under the student education loan; and\n2. With respect to a military borrower, older borrower, borrower working\nin public service, or a borrower with a disability, misrepresenting or\nomitting the availability of a program or protection specific to the\nrespective borrower or applicable to the respe ctive category of\nborrowers;\n(c) Misapply payments made by a borrower to the outstanding loan balance;\n(d) Refuse to communicate with an authorized representative of the borrower,\nexcept the servicer may adopt reasonable procedures for:\n1. Requesting verif ying documentation that the representative is in fact\nauthorized to act on behalf of the borrower; and\n2. Protecting the borrower from fraud or abusive practices;\n(e) Make any false statement or omit a material fact in connection with any\ninformation or re port filed with a governmental agency or in connection with\nany investigation conducted by the commissioner or any other governmental\nagency;\n(f) If the student education loan servicer is required to report, or voluntarily\nreports, to a consumer reporting agency, fail to accurately report each\nborrower's payment performance to a least one (1) consumer reporting agency\nupon acceptance as a data furnisher by that consumer reporting agency; or\n(g) Fail to respond to:\n1. Written correspondence from, or on behal f of, a borrower within a\nreasonable time as prescribed by the commissioner in administrative\nregulation;\n2. A communication from the commissioner or the commissioner's\nexaminer or designated representative, as applicable, within ten (10)\nbusiness days or within a shorter, reasonable time as the commissioner\nor the commissioner's examiner or designated representative may\nprovide in the communication; or\n3. A borrower complaint submitted to the servicer by the commissioner or\nthe commissioner's examiner or designated representative, as applicable,\nwithin ten (10) business days of receipt of the complaint, or upon\nrequest from the servicer explaining why the additional time is\nreasonable and necessary, a longer time as the commissioner or the\ncommissioner's ex aminer or designated representative may permit, not\nto exceed forty-five (45) days.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52732","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"43d52aa797644aaf59b1353e370c4c9977c2f555d0fdf7ad7a08198eaa00e1c2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.12-070","next":"us-ky/krs-286.12-085"},"notice":"GroundRules: Original legal text. Not legal advice."}