Class action lawsuit claims Fedloan Servicing failed to credit student loan payments promptly

By Noddy A. Fernandez | Sep 7, 2018

CHICAGO — A former law student has filed a class action lawsuit against FedLoan Servicing, citing alleged interference with contract and fraud.

Braden Lang, on behalf of others similarly situated, filed a complaint on Aug. 27 in Cook County Circuit Court against Pennsylvania Higher Education Assistance, doing business as Fedloan Servicing Inc. He alleges the defendant breached the student loan contract by failing to credit loan payoff payments on the date receipt.

According to the complaint, Braden Lang and the class of individuals whose federal student loans have been serviced by the defendant claim they sent enough money to pay the amount due in full, but that payments were allegedly not credited as of the date of receipt, resulting in additional interest being added to the account. 

As a result, plaintiff and the class members continue to risk for financial harm due to defendant's alleged practice of overcharging borrowers. 

The plaintiff requests a trial by jury and seeks judgment for actual and punitive damages, injunctive relief, attorney's fees, litigation expenses, costs, and such other or further relief as the Court deems proper. He is represented by Daniel A. Edelman, Cathleen M. Combs, James O. Latturner and Tara L. Goodwin of Edelman, Combs, Latturner & Goodwin, LLC in Chicago.

Circuit Court of Cook County Case number 18-CH-10797

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Organizations in this Story

Circuit Court of Cook County Edelman, Combs, Latturner & Goodwin, LLC Pennsylvania Higher Education Assistance Agency

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