The National Consumer Law Center, Justice Catalyst Law, and Flitter Milz, P.C. filed a class action lawsuit against Maximus Federal Services, Inc. (Maximus), alleging that the company is engaging in illegal collection activity against thousands of federal student loan borrowers who submitted Borrower Defense to repayment claims to the U.S. Department of Education. Maximus unlawfully continued to process wage garnishments, tax refund offsets, and Social Security offsets against Plaintiff Jaimaria Bodor and other members of the prospective class, when Maximus was supposed to cease all collection activity during the pendency of the plaintiffs’ Borrower Defense applications.
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Robinson v. National Student Clearinghouse (2019)
This suit alleges that NSC maintains vast databases housing detailed information about college students and their college enrollment history from which it sells reports to potential creditors, insurers and employers among others.
Defrauded Borrowers Sue U.S. Department of Education Contractor for Seizing Funds While They Wait in Limbo for Borrower Defense Relief
Justice Catalyst Law and partners served Maximus Federal Services, Inc. with a lawsuit that alleges the company is engaging in illegal collection activity against student loan borrowers who submitted Borrower Defense repayment claims to the U.S. Department of Education.