A class action lawsuit has been filed against Balboa Student Loan Trust for harassing former Everest College students for repayment of their student loans. The harassment came as a shock to former students whose debt had been previously forgiven by the U.S. Department of Education after it was determined that the institution was misleading students. Balboa Student Loan Trust, the company that purchased a portion of Everest College debts, has ignored the findings and has reportedly called students up to five times per day to collect on the student loan debts.
Everest College is owned and operated by Corinthian Colleges. The U.S. Department of Education fined Corinthian Colleges $30 million in April of last year for misrepresenting their job replacement rates. Later that month, Corinthian Colleges filed for bankruptcy and has since lost its accreditation. The colleges were also offering loans through a student loan program called Genesis, which was later found to be a scam by the Consumer Financial Protection Bureau when nearly 60 percent of the students defaulted on their loans due to outrageous repayment rates. Balboa Student Loan Trust later purchased these loans and promised to forgive 40 percent of the debt and stop harassing students to repay their loans. However, the consumer class action suit claims the debt collector has violated the terms that were agreed upon with the federal government.
“These private lenders are victimizing these students a second time by continuing to try and collect on debt that was incurred through fraud and deceit,” Anne Richardson said. Richardson is an attorney with Public Counsel, one of the law firms that filed the class action suit.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
