August 30, 2000
A class action lawsuit has been filed in Los
Angeles Superior Court alleging deceptive conduct with
respect to "hidden late fees" in student loan accounts
held by Sallie Mae Servicing Corporation.
Sallie Mae is the nation's largest private source of
funding and servicing support for higher education
loans.
The lawsuit alleges that Sallie Mae
systematically fails to disclose to borrowers that a
late fee has been charged against their account when,
in fact, numerous late fees have been assessed against
the borrower.
The suit alleges that the "hidden late
fee" policy results in Sallie Mae collecting
principal, interest and late fees which exceed those
authorized by Sallie Mae's standard form Promissory
Note.
