---
kind: "section"
citation: "34 C.F.R. § 682.703"
title: "34"
number: "682.703"
heading: "Informal compliance procedure."
url: "https://uscodex.org/cfr/34/682.703"
---

# §682.703. Informal compliance procedure.

- (a) The Secretary may use the informal compliance procedure in [paragraph (b)](#b) of this section if the Secretary receives a complaint or other reliable information indicating that a lender or third-party servicer may be in violation of applicable laws, regulations, special arrangements, agreements, or limitations entered into under the authority of statutes applicable to Title IV of the HEA.
- (b) Under the informal compliance procedure, the Secretary gives the lender or servicer a reasonable opportunity to—
  - (1) Respond to the complaint or information; and
  - (2) Show that the violation has been corrected or submit an acceptable plan for correcting the violation and preventing its recurrence.
- (c) The Secretary does not delay limitation, suspension, or termination procedures during the informal compliance procedure if—
  - (1) The delay would harm the FFEL programs; or
  - (2) The informal compliance procedure will not result in correction of the alleged violation.

## Notes

### Amendments

[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22457, Apr. 29, 1994]

### Authority

Authority: 20 U.S.C. 1071—1087-2, 1078-6(a)(5).

### Source

Source: 57 FR 60323, Dec. 18, 1992, unless otherwise noted.

### Amendments

[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22457, Apr. 29, 1994]