December 19, 2018- Earlier this month, the U.S. District Court for the District of New Jersey granted class certification to a group of borrowers alleging that a debt collection company misrepresented late charges accruing on student loan debt after default, in violation of the FDCPA.
Debt collection on unauthorized Student loan fees
The lead plaintiff brought the action against the debt collection firm after receiving a letter indicating that she defaulted on her federal Perkins student loans. The letter stated, “[d]ue to interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater.” However, the plaintiff later learned that Perkins loans cannot accrue late charges after default.
In denying the motion to dismiss and granting class certification, the court held the borrower met the requirement of showing a concrete and particularized injury, stating “when a debt collector violates Section 1692e by providing false or misleading information, the informational injury that results constitutes a concrete harm under Spokeo.”
In addition, the court found that the borrower met the requirements for class certification, specifically because the debt collection company had sent approximately 3,000 similar default letters to New Jersey loan holders.
If you or someone you know believes they were provided with false or misleading information by your student loan debt collector, please contact us. All consultations are free of charge. You may be eligible to be included in a Class Action Lawsuit.
Kohn, Swift & Graf is a national leader in class actions, including complex consumer litigation. With experienced consumer class action attorneys and a competent support staff, our firm strives to provide the highest quality of service to our clients. We treat each case with careful attention to ensure that consumers get the justice they deserve. KS&G is centrally located in Philadelphia, PA. We handle cases nationwide.