Top Class Actions  |  March 23, 2022

Category: Closed Class Actions

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This settlement is closed!

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MOHELA app logo on a smartphone screen - mohela class action lawsuit
(Photo Credit: NYC Russ/Shutterstock)

Update:

  • The claim deadline has been extended to July 11, 2022.

Missouri’s student loan authority, MOHELA, agreed to pay $600,000 to resolve class action lawsuit claims it violated the law with excessive calls.

The settlement benefits Massachusetts residents who received more than two phone calls from the Higher Education Loan Authority of the State of Missouri (MOHELA) within a seven-day period between May 13, 2016, and Dec. 22, 2021. Affected consumers will be validated using MOHELA records of customers with Massachusetts addresses.

MOHELA isn’t a student loan lender, according to Bankrate.com. Instead, it services loans for the U.S. Department of Education. The company also services refinances loans for SoFi, Laurel Road, and other companies. 

While collecting on student loans, MOHELA may have violated Massachusetts debt-collection laws.

According to a 2020 class action lawsuit against the loan servicer, MOHELA violated the Massachusetts Consumer Protection Act and Massachusetts debt-collection laws by placing multiple calls to customers within a short period of time. These “excessive” calls allegedly harassed consumers like the plaintiffs.

Massachusetts debt collection laws prohibit excessive debt collection calls such as those allegedly placed by MOHELA. Specifically, Massachusetts law restricts debt collectors to two calls within any seven-day period or two calls within a 30-day period when calls are placed to a person’s work or another non-residential location.

Plaintiffs in the MOHELA class action lawsuit alleged violations of these and other regulations and sought compensation under the state laws.

MOHELA hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $600,000 class action settlement.

Under the terms of the settlement, Class Members will be able to receive a cash payment. No payment estimates are available as payment amounts will vary depending on the number of claims filed with the settlement. 

A second payment distribution may happen if a large number of settlement checks aren’t cashed from the first round of payments. However, if excess funds would result in payments lower than $5, these funds will be used for a charity donation instead.

The deadline for objection is March 22, 2022.

The final approval hearing for the settlement is scheduled for May 3, 2022.

In order to get a payment from the settlement, Class Members must submit a valid claim form by July 11, 2022.

Who’s Eligible

The settlement benefits Massachusetts residents who received more than two phone calls from the Higher Education Loan Authority of the State of Missouri (MOHELA) within a seven-day period between May 13, 2016 and Dec. 22, 2021. Affected consumers will be validated using MOHELA records of customers with Massachusetts addresses.

Potential Award

Varies

Proof of Purchase

Claim ID and PIN is needed, if you do not have a Claim ID and PIN the phone number MOHELA called is requested.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

07/11/2022

Case Name

Marie Coughlinv.Higher Education Loan Authority of the State of Missouri (MOHELA), Case No.2083CV00381A, in the Commonwealth of Massachusetts, Plymouth County Superior Court

Final Hearing

05/03/2022

Settlement Website
Claims Administrator

Coughlin v. MOHELA Settlement Administrator
P.O. Box 43501
Providence, R.I. 02940-3501
855-786-1049

Class Counsel

Sergei Lemberg
Stephen Taylor
LEMBERG LAW LLC

Defense Counsel

Ryan P McManus
HEMENWAY & BARNES LLP

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5 thoughts onMOHELA $600K debt collection calls settlement

  1. Bethana Henderson says:

    I did a claim form 2/1/2022 and never heard on my postcard it says claim number BB-393-197 pin-7662 I should get the payment I still have a Mohela account they keep putting it on hold

  2. Tresia Cupler says:

    I don’t live in Massachusetts I live in Arkansas mohila calledme4 days in a row cursing me

  3. Yolanda says:

    I know people that don’t live in Massachusetts but they use MOHELA to get their student loans. How do they get in on this lawsuit?

  4. Pam Haywood says:

    If and when how are we notified of cash settlement? Is It just mailed to us. It was finalized May 3rd.Just wondering what now

  5. Benjamin Johnson says:

    I had a student loan with mohela for my daughter in 2016 I paid the loan off in 2021

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.