Citi, Discover Bilked Student Loan Borrowers, Suit Says

Law360, New York (April 27, 2012, 3:15 PM EDT) -- Citibank NA and Discover Bank ripped 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 principal, according to a proposed class action filed Wednesday.

In a complaint filed in New York federal court, borrower Justin A. Kuehn says he began making $845 monthly payments about four years ago. Early this year, his bills abruptly fell to $540 per month, after which Citibank sent a “false explanation” for the...
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