Friday, March 26, 2010
Many of my clients reported receiving a strange letter stating that their loan was being sold by Student Loan Xpress, Inc. to Student Loan Xpress, Inc. My investigation shows that this letter was sent in error by AES and that it has no effect whatsoever on the proposed class action settlement agreement.
Proposed Class Action Settlement for Former SSH Students with Loans from Student Loan Xpress Loans is "Under Submission"
The hearing on the proposed class action settlement agreement took place on Monday, March 21 in Florida, but no ruling has been made yet. I spoke this week with Andy August of Pinnacle Law Group, one of the class counsel lawyers that attended the hearing on Monday. I also spoke with Robert Stone, one of SLX's lawyers that attended the hearing. Both reported that the judge heard argument and testimony for and against the settlement, and expressed concerns regarding several issues, including the interest rate reduction under the settlement agreement, the debt forgiveness schedule, and the tax treatment of any debt forgiveness. In the end, the judge said that he was taking the matter under submission. A ruling either approving or disapproving the proposed class action settlement is expected in the near future. The judge did not say when he would issue his ruling.
This is a status update for all of my clients with KeyBank loans. I have signed a confidentiality agreement with counsel for KeyBank and am renewing my attempts to negotiate a proposed settlement agreement that I can recommend to you. I do not have any such agreement yet. Meanwhile, Andy August of Pinnacle Law Group is litigating a California Class Action Case against KeyBank. There is a hearing on KeyBank's Motion to Dismiss set for Monday, March 29, 2010. Although this action is limited to California students, if it is successful, it may help me to help former SSH students with KeyBank loans throughout the country.