A lawsuit was filed against Navient Solutions LLC, Experian Information Solutions Inc., & Equifax Inc. arising from the alleged “mismanagement and wrongful actions taken in connection with Plaintiff’s credit reports.” Specifically, the plaintiff alleges she was the target of illegal collection of student loans.

Plaintiff Andrea T. filed her claim in Alabama federal court after dealing with the allegedly improper behavior of the companies as they attempted illegal collection of student loans.

According to the claim, Navient “has engaged in aggressive collections campaign against Plaintiff which includes harassing phone calls, numerous demands for sums not owed, repeated written express threats, false credit reporting, all in an attempt to coerce Plaintiff to pay sums she does not owe,” the lawsuit states.

The claim states that Experian and Equifax “failed to conduct any proper investigation of Plaintiff’s credit reporting dispute as required under the FCRA.”

In 2016, Andrea states that she received a collection letter from Navient in the mail that attempted to collect past due student loans. The letter stated that she owed more than $6000 for a total of three different student loans that she took out in 2003.

In January 2016, Andrea’s lawyer had sent a letter to Navient informing the company that the loans, which were taken out by Andera’s parents due to her age at the time of the loans, were paid in full after her parents’ Chapter 13 bankruptcy was discharged in 2014. The total paid on the loans was $10,619.91, according to the claim.

In March 2016, Andrea’s mother requested a loan payoff inquiry and proof of claim from her bankruptcy attorney to prove that these loans had already been paid since no loan debt was actually due. Each time Andrea received these statements of illegal collection of student loans, she would call Navient to dispute the debt.

In June 2016, Andrea states that she had to call TransUnion and Equifax to dispute the accounts that were appearing on her credit report. Upon investigation, Andrea found TransUnion had appropriately reported the account, but Equifax never responded to her inquiry.

Andrea tried to unsuccessfully resolve the issue with the originator of the bank loan and then attempted to have her account information updated on her credit reports. Experian and Equifax “continued to false report the loan” and Andrea accused the two companies of having “wrongfully failed to conduct any proper investigation” and said they “continue to false report the loan in arrears.”

Andrea states that these ongoing communications have been unsuccessful, and she continues to suffer from illegal collection of student loans despite her attempts to correct the situation. The claim states that “This damage includes damage to her credit and reputation, credit denials, loss of credit opportunities and mental anguish.”

As a result, Andrea has raised counts of invasion of privacy and wanton collections, FCRA violations by Experian and Equifax and separately by Navient and FDCPA violations. She is seeking a jury trial and is seeking an award of actual damages, including damages for mental and emotional pain, distress, anguish, humiliation, frustration, anxiety and embarrassment, statutory damages, punitive damages, costs and attorney’s fees.

The Illegal Collection of Student Loans Lawsuit is Case No. 1:17-cv-00348-C, in the U.S. District Court for the Southern District of Alabama, Southern Division.

DISCLAIMER: Debt collection itself is not illegal. However, creditors and debt collection firms collecting on consumer debts must adhere to the FDCPA and respect bankruptcy discharge injunctions. Even though consumer debt attorneys are investigating these companies, their debt collection practices may be legal.