Judge Orders Arbitration In ACS Loan Inflation Suit

By Juan Carlos Rodriguez (August 31, 2012, 7:51 PM EDT) -- A federal judge on Thursday granted student loan servicer Affiliated Computer Services Inc.'s request to force arbitration with a borrower who filed a proposed class action alleging the company inflated his debt, after the U.S. Supreme Court reversed his decision to deny arbitration.

U.S. District Judge Thomas P. Griesa said plaintiff Joshua Fensterstock's lawsuit claiming ACS applied an undocumented fee to his account doesn't qualify as an exemption to the Federal Arbitration Act, which the high court ruled in AT&T Mobility LLC v. Concepcion preempts state laws that invalidate contractual class action arbitration waivers.

"The Supreme Court recognized that the FAA...

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