2021 California Code
Civil Code - CIV
DIVISION 3 - OBLIGATIONS
PART 4 - OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS
TITLE 1.6C.15 - Private Student Loan Collections Reform Act
Section 1788.208.

(a) A person may bring a cause of action against a creditor, private education lender, or private education loan collector for a violation of any provision of this title in order to recover or obtain any of the following:

(1) Damages in an amount equal to the sum of the following:

(A) Any actual damages sustained by that person as a result of the violation.

(B) Statutory damages in an amount as the court may allow, which shall not be less than five hundred dollars ($500) per violation.

(2) Damages pursuant to Section 3294.

(3) An order vacating any default judgment entered against that person.

(4) Restitution of all moneys taken from or paid by that person after a default judgment was entered in favor of the private education lender or private education loan collector.

(5) An order directing the private education lender or private education loan collector to do one or more of the following:

(A) Request that a consumer reporting agency correct a consumer report that it issues.

(B) Request that a consumer reporting agency remove derogatory information furnished to it after default.

(C) Furnish correct information to a consumer reporting agency.

(6) Any other relief that the court deems proper.

(b) In the case of a class action, a defendant that violates any provision of this title shall be liable for any statutory damages for each named plaintiff as provided in subparagraph (B) of paragraph (1) of subdivision (a). If the court finds that the defendant engaged in a pattern and practice of violating any provision of this title, the court may award additional damages to the class in an amount not to exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the defendant.

(c) (1) In the case of any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees as determined by the court.

(2) Reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the cause of action was not in good faith.

(d) A private education lender or private education loan collector shall have no civil liability for damages under this section if the private education lender or private education loan collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, and occurred notwithstanding the maintenance of procedures reasonably adopted to avoid any error.

(e) A cause of action to enforce any liability created by this title shall be brought within one year from the date of the discovery by the plaintiff of the last violation, or, in the event a default judgment is entered against the debtor, one year from the date the borrower first receives a writ, notice, or order under Division 1 (commencing with Section 680.010) or Division 2 (commencing with Section 695.010) of Title 9 of Part 2 of the Code of Civil Procedure, whichever is later.

(Added by Stats. 2021, Ch. 559, Sec. 1. (AB 424) Effective January 1, 2022. Operative July 1, 2022, pursuant to Section 1788.211.)