$1.2M Nelnet Call-Recording Settlement Gets Preliminary OK

Law360, New York (August 5, 2014, 3:30 PM EDT) -- A California federal judge on Monday preliminarily signed off on student loan servicer Nelnet Inc.’s $1.2 million settlement agreement that would resolve claims that the business illegally recorded telephone calls, despite reservations that the claims release might be too broad.

Plaintiff Than Zaw accused Nelnet of calling him about a relative's debt, and despite knowing the loan didn’t belong to Zaw, the company still tried to collect. Nelnet allegedly recorded the calls without informing Zaw, who said he never consented for Nelnet to record the telephone calls.

U.S. District Judge Richard Seeborg preliminarily approved the deal to settle the invasion of...

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