Conduent Education Services deceptive loan practices $3.25M class action settlement

Conduent Education Services agreed to pay $3.25 million to resolve claims it violated New York lending laws with deceptive practices.

The settlement benefits student loan borrowers who submitted an application to consolidate at least one Federal Family Loan and Education Program (FFELP) loan into a direct consolidation loan between Jan. 18, 2012, and May 5, 2021, and who did not receive a loan verification certificate within 10 days of requesting one.

Conduent Education Services was a student loan servicing company that also operated under the name ACS Education Services. Conduent Education Services has faced repeated action from the government, including a 2019 settlement with the Consumer Financial Protection Bureau for loan serving violations and a 2022 settlement with the Department of Justice for false claims.

Consumers have also taken action against the loan servicer. According to a 2018 class action lawsuit, Conduent Education Services violated New York lending laws by failing to provide loan verification certificates within 10 days of receiving a request. This failure allegedly made it impossible for borrowers to prepay their loans “at any time” as Conduent Education Services promised they would be able to.

Conduent Education Services hasn’t admitted any wrongdoing but agreed to pay $3.25 million to resolve these claims.

Under the terms of the settlement, class members can receive a proportional share of the net settlement based on the losses they sustained. Class members who suffered larger monetary losses will receive a larger share of the settlement fund, while those who suffered smaller losses will receive a smaller share. 

Exact payments will vary depending on factors such as how much in payments, if any, class members made for principal, interest and fees before receiving a loan verification certificate. 

Payments will range from $50 to $5,000, according to the settlement website.

The deadline for exclusion and objection is Nov. 1, 2022. 

The final approval hearing is scheduled for Dec. 1, 2022.

In order to receive a payment from the settlement, class members who are eligible for under $750 do not have to take any action unless the claims administrator requests they fill out a W-9 for tax compliance purposes. 

Class members who are eligible for over $750 must submit a verification form by Nov. 1, 2022.

Who’s Eligible

Student loan borrowers who submitted an application to consolidate at least one Federal Family Loan and Education Program (FFELP) loan into a direct consolidation loan between 01/18/2021 and 05/05/2021, and did not receive a loan verification certificate within 10 days of requesting one

Potential Award

Varies

Proof of Purchase

Proof of purchase not applicable

Verification 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.

Verification Form Deadline

11/01/2022

Case Name

Chery vs Conduent Education Services LLC, Case No. 1:18-cv-00075-DNH-CFH, in the U.S. District Court for the Northern District of New York

Final Hearing

12/01/2022

Settlement Website

ConduentLVCSettlement.com

Claims Administrator

Conduent LVC Settlement – 7711
P.O. Box 2599
Faribault, MN 55021-9599
833-579-3125

Class Counsel

Lawrence Eagel
BRAGAR EAGEL & SQUIRE PC

Justin Kuehn
MOORE KUEHN PLLC

Defense Counsel

John C Grugan
Thomas F Burke
BALLARD SPAHR LLP