Student Loan Merchant Accounts Getting Tougher To Acquire
More troubles for the student loan consolidation industry. A recent lawsuit against the PA Higher Education Assistance Agency, is fueling the fire against the industry. Between lawsuits and attorney general investigations plaguing the industry, getting a student loan consolidation merchant account is a very challenging task.
Latest Industry Litigation
A class-action complaint was filed against the country’s biggest service providers of student loans. This lawsuit was filed by a Texas resident, Danielle Salvatore on account of all others. This complaint mentioned the alleged breach of the agreement. Ms. Danielle was represented by Marion Munley of Munley Law P.C. in Scranton, Penn.
Pennsylvania Higher Education Assistance Agency is a public organization. According to Danielle, the agency did not disclose its revised policy. The agency revised its Pay As You Earn option (REPAYE) and did not intentionally describe it to the borrowers.
Ms. Salvatore on 1st March 2017 went to the US District Court for the Middle District of Pennsylvania. In the complaint, she mentioned that she faced damages due to misleading information. According to her, she was misled to participate in the payment scheme for her student loan.
She held Pennsylvania Higher Education Assistance Agency liable for the damages. the reason was that they were unable to provide the essential information of the REPAYE scheme. They didn’t inform her about the additional interest and fees of the program.
The accuser has requested the jury for a trial. She wants a permanent command against the public agency. Along with this, an order to the agency to give the borrowers complete information regarding the REPAYE program.
Moreover, the defendant must also provide monetary damages, exemplary damages, compensatory damages, interest, over $ 5million in punitive damages. Along with this, any further relief that the court deems appropriate.
High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412