Second Circuit rules student loan company’s arbitration clause is unenforceable.

Posted by on Jul 18th, 2010 and filed under Announcements, Legal News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

The New York Law Journal (7/13, Hamblett) reports, “A lawyer who sued a student loan company over hidden fees in loan agreements cannot be forced into arbitration and can pursue a class action, the 2nd US Circuit Court of Appeals ruled Monday. The circuit in Fensterstock v. Affiliated Computer Services, 09-1562-cv, said that the loan agreement’s class action and class arbitration waiver clause was unconscionable and unenforceable. The decision by Judges Amalya L. Kearse, Jose A. Cabranes and Chester J. Straub clears the way for Joshua G. Fensterstock to be lead plaintiff in a putative class action against Affiliated Computer Services Inc., which serviced student loan notes for Education Finance Partners, a now-bankrupt California corporation.”

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