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Sunday, October 20, 2019

Navient allegedly broke California laws with high interest rates

By Hoang Tran | Nov 3, 2015

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LOS ANGELES (Legal Newsline) - Three borrowers have sued the company that services their student loans alleging the interest rates they are being charged violate California's Constitution and Unsury Law. 

Jamie Beechum, Jeannie Hart and Monica Hervey, on behalf of themselves and all others similarly situated, filed a class-action lawsuit on Oct. 21 in U.S. District Court for the Central District of California against Navient Solutions, Inc., and various trusts and owners of their student loans.

They allegedly are being charged interest above 18 percent per annum on their private credit student loans, which is substantially more than the 10 percent per annum allowed for education loans issued by any entity besides a bank under California law. 

The loans were originally made by the Student Loan Marketing Association, which is now Navient.

The plaintiffs are suing for an undisclosed amount of restitution; refund of all interest paid that exceeds the 10 percent per annum rate; an order to cancel all interest rates that exceeded 10 percent per annum; an order awarding three times the interest rate paid by plaintiffs and the class members within one year of filing suit or three times the amount of interest paid on private loans exceeding 10 percent per annum limit; an enjoinment of interest being at a rate exceeding 10 percent per annum on plaintiffs' and class members' private loans; court costs and attorney fees; and any other rewards deemed just by the court. 

They are being represented by William J. Genego of the Law Office of William Genefo in Santa Monica, Calif; Sally M. Handmaker of Cohen Milstein Sellers and Toll, PLLC in Washington, D.C.; Michael D. Braun of Braun Law Group, P.C. in Los Angeles; Evan A. Jenness of the Law Offices of Evan A. Jenness in Santa Monica; and Janet Linder Spielberg of the Law Offices of Janet Linder Spielberg in Los Angeles.

U.S. District Court, California Central District Court case no. 2:15-cv-08239-BRO-MRW

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