A lawyer who sued a student loan company over hidden fees in loan agreements cannot be forced into arbitration and can pursue a class action, the U.S. Court of Appeals for the Second Circuit ruled yesterday. In an opinion by Judge Amalya L. Kearse, the circuit said that the loan agreement's class action and class arbitration waiver clause was unconscionable and unenforceable.
July 13, 2010 at 12:00 AM
1 minute read
A lawyer who sued a student loan company over hidden fees in loan agreements cannot be forced into arbitration and can pursue a class action, the U.S. Court of Appeals for the Second Circuit ruled yesterday.
The circuit in Fensterstock v. Affiliated Computer Services, 09-1562-cv, said that the loan agreement’s class action and class arbitration waiver clause was unconscionable and unenforceable.
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