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HomeFinancial CodeDiv. 12.5Ch. 5§ 28160 Unlicensed Student Loan Servicing

§ 28160 Unlicensed Student Loan Servicing

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 28160 Unlicensed Student Loan Servicing

Key Takeaways

  • •You need a special permission (license) from the state to handle student loans as a business.
  • •If you do this work without the license, the state can tell you to stop immediately.
  • •You can ask for a meeting to explain your side, but you have to do it within 30 days.
  • •Some people or groups don’t need this license (like banks or the government).

Example

A company starts helping students pay back their loans but never gets the required license from the state.

The state can order the company to stop working right away. If the company asks for a hearing within 30 days but the meeting doesn’t happen in 60 days, the order to stop is canceled.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 28160 Unlicensed Student Loan Servicing

Whenever, in the opinion of the commissioner, a person is engaged in the business of servicing student loans in this state, either actually or through subterfuge, without a license from the commissioner, the commissioner may order that person to desist and refrain. If, within 30 days after an order is served, a request for a hearing is filed in writing and the hearing is not held within 60 days of the filing, the order is rescinded. This section does not apply to persons exempted under subdivision (b) of Section 28102. (Added by Stats. 2016, Ch. 824, Sec. 2. (AB 2251) Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)

Last verified: January 23, 2026

Key Terms

commissionstudenthearinglicenseoperative july

Related Statutes

  • § 28162 Licensee Compliance Orders
  • § 28164 Licensee Order Hearing Rights
  • § 28170 Student Loan Servicing Citations
  • § 28176 Hearings Conducted Under Government Code
  • § 31302 Licensee Office Accessibility Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 28160.
View Official Source