US Bank, Loan Cos. 'Trapped' Student Borrowers, Suit Says

Law360, New York (August 29, 2012, 3:04 PM EDT) -- U.S. Bank NA, Affiliated Computer Services Inc. and NextStudent Inc. were hit with a putative class action in New York federal court Tuesday accusing them of seeking to maximize the interest paid by student loan borrowers by ignoring their contractual guidelines for loan payments.

According to plaintiff Cindy Breitman, the defendants applied loan prepayments — payments made in excess of the stated monthly amounts due — not to loan principal, but to satisfy future scheduled payments. The companies ignored borrowers’ instructions on how prepayments should be...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.