Many individuals have been affected by Sallie Mae’s recent financial meltdown. To maximize short-term profits and convince investors of favorable terms, the company’s executives doubled down on a risky strategy. Instead of reducing losses, they wrote billions of dollars worth of private loans to high-risk borrowers. The company then underreported the expected losses and understated income from these loans.
Class action lawsuit against Navient
A class-action lawsuit against Navient was filed in October 2017 alleging that the company used an Automatic Telephone Dialing System to place calls without the borrowers’ consent. According to the plaintiff, the representative plaintiff listed his cell phone as a reference on his brother’s student loan application, but never gave Navient consent to call his phone. Nonetheless, the representative plaintiff received numerous calls from Navient that were based on false information and libelous statements.
Although these Navient class-action lawsuits do not cover all borrowers, they do involve multiple consumers and are often based on billing and collections practices. Although customers can file individual lawsuits, these suits can be complex. In some cases, the plaintiff may not be able to win the lawsuit, while others may have to deal with a group of other customers. The lawsuit may only be settled when a judge gives his or her formal OK.
Class action lawsuit against Sallie Mae
A class-action lawsuit against Sallie Mae is underway in the United States. A group of investors filed suit against the company after they discovered a series of problems. A federal district court judge in Manhattan approved a $35 million settlement agreement, but Sallie Mae did not admit fault. A final ruling is expected in August. In the meantime, investors are encouraged to take action and contact their state’s attorney general’s office for additional information.
The lawsuit is about loan practices at Sallie Mae. Until 2014, Navient, the parent company of Sallie Mae, gave private loans to students it knew could not pay them back. The company used this tactic to lure federal loan borrowers and fill the gap for those with government-backed loans. In addition, the company used false advertising to push borrowers into a costly forbearance and failed to inform them of the benefits of income-driven repayment plans.
Class action lawsuit against Genworth Life Insurance Company of New York
In a putative class-action lawsuit against the Genworth Life Insurance Company of New York, plaintiffs say the company is in breach of contract by imposing excessive increases in premiums. They claim the increase was not applied uniformly to policyholders and they were unable to obtain reports on illustrative future death benefits or policy values. The plaintiffs also claim that the company is in breach of the law by not disclosing certain information to policyholders.
In the original complaint, plaintiffs sought damages exceeding $5 million. They alleged breach of contract and fraud, among other things. Their claims are based on several laws, including the Pennsylvania Unfair Trade Practices and Consumer Protection Law. In the amended complaint, the parent company of Genworth Life Insurance Company of New York was dropped and replaced by the New York-based insurance company. These lawsuits are ongoing and will require further litigation.
Class action lawsuit against Alliance One
A class-action lawsuit against AllianceOne has been filed in Washington state, based on allegations that the company violated federal law by accessing the credit reports of people with outstanding parking tickets. The lawsuit claims that the company violated the Fair Debt Collection Practices Act (FDCPA) by contacting consumers and using aggressive debt collection methods. While this company has settled the lawsuit for $2.2 million, consumers should consider contacting a law firm for a free consultation. Tayne Law Group, a leading debt relief firm, is a perfect choice.
The class-action lawsuit was filed in February 2018, alleging that AllianceOne received credit reports from Experian between August 2013 and August 2015. The company is accused of violating the Fair Credit Reporting Act (FCRA), which governs the access and collection of credit information. The FCRA was passed in 1970 with the intent to protect consumers from identity theft and protect their privacy. While this may not seem like an ideal outcome, it does represent a significant victory for consumers who were affected by this type of practice.
