Section 7. (a) The commissioner shall conduct investigations and examinations: (i) for initial licensing, license renewal, license suspension, license revocation or termination or determining compliance with this chapter; and (ii) of violations or complaints arising under this chapter.

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In an investigation or examination conducted pursuant to this section, the commissioner may access, receive and use information from any relevant party’s books, accounts, records, files, documents and other information as needed.

If there is reason to believe that a person other than a licensee has violated this chapter, the commissioner may investigate the person as necessary. The commissioner may examine the person who allegedly violated this chapter and may compel the production of relevant books, accounts, records, files, documents and other information as needed.

The total cost for any investigation or examination shall be paid by the student loan servicer not more than 30 days after the receipt of an invoice for the total cost, shall be in accordance with fees determined annually by the secretary of administration and finance pursuant to section 3B of chapter 7 and shall include expenses for necessary travel outside of the commonwealth to conduct the investigation or examination.

All records of investigations by the commissioner, records of the office of the student loan ombudsman established under section 35 of chapter 12 and reports of examinations by the commissioner, including workpapers, information derived from the reports that cannot be obtained from other sources and responses to the reports, and any copies thereof in the possession of a student loan servicer under the supervision of the commissioner, shall be confidential and privileged communications; provided, however, that nothing in this subsection shall interfere with the work of the office of the student loan ombudsman established under said section 35 of said chapter 12; and provided further, that the records of the student loan ombudsman may be made public only if the attorney general determines that such disclosure is in the public interest.

For the purposes of this subsection, records of investigation and reports of examinations shall include records of investigation and reports of examinations conducted by a financial regulatory agency of the federal government, another state or a foreign government that are considered confidential by the agency or foreign government and are in the possession of the commissioner. In a proceeding before a court, the court may issue a protective order in appropriate circumstances to protect the confidentiality of the record and order that the record on file with the court or filed in connection with the court proceeding be sealed and that the public be excluded from any portion of the proceeding at which the record is disclosed. Copies of the reports of examination shall be furnished to a licensee for the licensee’s use only and shall not be exhibited to any other person, organization or agency without prior written approval by the commissioner. The commissioner may furnish information, reports and statements relating to the licensees under the commissioner’s supervision to regulatory agencies of the federal government, other states and foreign countries and to law enforcement agencies as considered appropriate.

(b) In an investigation or examination conducted pursuant to this section, the commissioner shall have free access to the documents and records of the student loan servicer or any other person under investigation or examination. Unless the commissioner has reasonable grounds to believe that the documents or records of the student loan servicer or other person have been or are at risk of being altered or destroyed for the purposes of concealing a violation of this chapter, the student loan servicer or owner of the documents and records shall have access to the documents or records as necessary to conduct ordinary business affairs.

(c) No student loan servicer or person subject to investigation or examination under this section shall knowingly withhold, amend, remove, mutilate or destroy any books, records, computer records or other information requested by the commissioner.

(d) The commissioner may suspend a student loan servicer license issued under subsection (e) of section 2 if the commissioner finds that: (i) the student loan servicer has violated this chapter; or (ii) a fact or condition exists that would have warranted a denial of the license if the fact or condition existed at the time of the original application for the license.

(e) The commissioner may revoke or refuse to renew a student loan servicer license issued under subsection (e) of section 2 if the commissioner finds: (i) 2 or more violations or facts or conditions as described in subsection (d) during a license period; (ii) reckless or willful conduct on the part of the licensee; or (iii) it is in the public interest to revoke or refuse to renew the license.

(f) Notwithstanding any general or special law to the contrary, if the commissioner determines that a person has violated this chapter or that a person or entity associated with a student loan servicer has committed fraud or engaged in unfair, deceptive or dishonest activities, the commissioner may take action against that person or entity including, but not limited to: (i) suspension or revocation of that person’s license pursuant to subsection (e); (ii) imposition of an administrative penalty of not more than $50,000 per incident; or (iii) both.