Citibank, Discover Win Arbitration Bid In Student Loan Suit

Law360, New York (December 7, 2012, 7:07 PM EST) -- A New York federal judge on Thursday told the plaintiff in a proposed class action alleging breach of his student loan contract that he must enter arbitration against defendants Citibank NA and Discover Bank because he had failed to prove the entire arbitration provision in his agreement was unenforceable.

Plaintiff Justin A. Kuehn accused the two banks of ripping off borrowers by tricking them into thinking interest rates on their student loans had been reduced, when in fact the customers were unwittingly paying lower amounts of...
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