Sunday, March 29, 2009

Possible Class Action Over Hidden Student Loan Fees

A Hofstra law school graduate has sued Education Finance Partners over fees he said were hidden, and a judge has ruled that the student lender can't force him into arbitration, paving the way for a class action suit. The highly annoying and according to the judge "unconscionable" charges had to do with the way payments were applied to the principal vs. the interest.

I have heard about this kind of thing before--this game playing is pretty common among lenders. I don't understand how the guy is going to get satisfaction from Education Finance Partners, however.
The company is now in bankruptcy & in 2007, they had to pay $2.5 million to settle charges brought by Attorney General Andrew Cuomo over its shady business practices.

1 comment:

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Oes Tsetnoc