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A Texas man has filed a lawsuit alleging that a student loan company wrongfully besmirched his credit report over student loans that never actually existed. The plaintiff in this debt collection lawsuit first discovered the error when preparing to apply for business and home loans, and ordered a copy of his credit report.
The debt collection lawsuit was filed by plaintiff Elimelech Hebrew, who alleges that he never had a loan through a company called Nelnet. Nelnet specializes in private student loans. However, when Hebrew checked his credit report in 2012, all three of the major credit reporting agencies stated that Nelnet had listed him as having a debt in collections with them. While two of the three agencies quickly corrected their reports, TransUnion continued reporting the debt, according to his debt collection lawsuit.
According to his debt collection lawsuit, Hebrew embarked on a two-year Kafkaesque quest to try and get the matter corrected. The Nelnet lawsuit states neither TransUnion nor Nelnet responded to Hebrew’s requests in certified letters or other forms of communications asking for any kind of proof that the debt exists.
Hebrew also allegedly contacted the Federal Trade Commission, who subsequently directed him to the Consumer Financial Protection Bureau, which allegedly had similar problems getting TransUnion or Nelnet to respond.
The Nelnet debt collection lawsuit seeks several types of damages from both TransUnion and Nelnet. This includes statutory damages — damages awarded based on the law rather than calculated based on damages an individual has suffered. This debt collection lawsuit seeks $1,000 in statutory damages, as well as actual damages, or compensation for harm a plaintiff has suffered. The lawsuit also seeks injunctive relief, or a court order to correct the plaintiff’s credit report.
Along similar lines to Hebrew’s individual debt collection lawsuit, a debt collection abuse class action lawsuit investigation has been launched to explore the possibility of legal action against debt collection agencies. Investigators are looking for individuals who have experienced improper debt collection tactics, including activities like debt collection harassment, collection of expired debt, improper communication with third parties, improper reports to credit reporting agencies, and failing to disclose the right to dispute the debt. Class action lawsuits have several advantages over individual lawsuits, in that legal fees are spread out across a number of different plaintiffs, making it more economically feasible to file a debt collection lawsuit.
The Unfair Debt Collection Lawsuit is Elimelech Shmi Hebrew v. TransUnion, et al., Case No. H-14-1091, in the U.S. District Court for the Southern District of Texas, Houston Division.
Join a Free Unfair Debt Collection Class Action Lawsuit Investigation
If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).
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5 thoughts onNelnet Debt Collection Lawsuit Filed Over Allegedly Nonexistent Student Loans
Still dealing with this
Watch your statements closely! I have 7 loans with Nelnet, and paid one off over a year ago. Suddenly, it shows I owe them 11.00 on that loan.
I’m in the process of cutting/pasting all my statements into Excel (if anyone knows an easier way, please let me in on it!), so that I can actually monitor what’s going on.
“Nelnet specializes in private student loans.” this false, Nelnet only work w/ federal student loans
I borrowed $6000, paid off about $4000 and brought the debt down to about $2000. I became too disabled to work and several times a year for 4 to 5 years I sent in disability forms to Nelnet to have my debt cancelled.During the years that Nelnet kept refusing my well documented disability applications that remaining $2000 dept grew to $4000 because of interest. Nelnet refused every application which were quite complete and included Doctor’s letters. I have MULTIPLE disabilities. I’m 69 years old. Eventually the Department of Education stepped in and forgave my student loan (took it out of Nelnet’s hands). Now 3 years later, Nelnet is trying to collect. They recently told me my forbearance was approved. Excuse me??? this is odd, because I DID NOT APPLY FOR A FORBEARANCE. The Department of Education never notified me that the loan forgiveness was cancelled…but Nelnet said it is. I think I would have been notified by the Dept of Education and told why.
I have been unable to work since January 2004. There is no reason why my loan forgiveness would have been taken away. It’s been a little over 2 years since the loan was finally forgiven, and now Nelnet says my balance owed is $190,000.00. I believe this is a scam. I think this is fraud. I wrote to the Dept of Education about it but they have not responded.
I have been talked by Nelnet since 2006 they garnished my SSDI for years and still made threatening calls to me and my elderly parents even though they had payment and they took every penny of any stimulus check given to a U.S. citizen . I was Never sent any statement of any kind and they knew my address. In 2006 my doctor signed a TPD and they sent it back 4 times for ignorant things and made him initial where he had already signed he refused to see me anymore. had other doctors send forms and they were totally ignored .Now here it is 2015 Im 65 years old with post traumatic stress disorder and live an hour away from the recent terrorists shootings and I get another request for the same information Ive been sending them for 14 years I didn’t go to Harvard a community college for an AA degree is all. they want a letter from SS stating a review date there is no such thing its random believe me I tried. My condition just gets worse from their harassment. I had a student loan ombudsman who got pretty far then he disappeared makes me feel even more terror. Is there no limitations to the number of years and a persons age?? I am not employable they’ve taken enough out of my SSDI checks to more than cover the loan. They need to be investigated have copies of all I sent them.