Brooklyn Debtor Files Class Action Over Allegedly Misleading Student Loan Collection Letters

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Constar Financial Services, LLC joins Empereon-Constar; Empereon International Member, LLC; and Navient Solutions, LLC as a defendant in a proposed class action filed by a Brooklyn consumer who claims the agencies sent him several misleading collection notices.

The case alleges that the January 2018 notices failed to identify to whom the plaintiff’s debts were owed because there is “no such entity” as the listed creditor, “Navient Ed Credit Finance Corp.” The plaintiff claims the letters were further misleading as they failed to disclose both that the debts were accruing interest and fees and that the statute of limitations on the debts had expired.