Great Lakes Educational Loan Services agreed to pay over $1.275 million as part of a settlement to resolve claims it violated debt-collection laws with excessive phone calls.
The settlement benefits Massachusetts residents who received more than two phone calls regarding a debt from Great Lakes Educational Loan Services within a seven-day period since Oct. 28, 2015.
According to plaintiffs in the debt-collection class action lawsuit, Great Lakes violated the Massachusetts Consumer Protection Act and the Massachusetts Debt Collection Regulations by contacting consumers more than twice in a seven-day period.
Great Lakes Educational Loan Services is a federal loan servicer that accepts payments for federally issued education loans. The company may contact borrowers in an attempt to collect on a loan but must comply with debt-collection laws.
Great Lakes hasn’t admitted any wrongdoing but agreed to a $1.275 million class action settlement to resolve these allegations.
Under the terms of the Great Lakes settlement, class members who submit a claim can collect an equal share of the net settlement fund. Settlement payments will vary depending on the number of participating claimants and the net settlement fund after deductions, including attorneys’ fees. No payment estimates are available at this time.
Residual settlement funds may be distributed as a second round of payments to consumers who cashed their first check. If funds do not warrant a second distribution, they will be donated to a charitable recipient approved by the court. No funds from the settlement will revert to Great Lakes.
The deadline for objection is Feb. 27, 2023.
The final approval hearing for the settlement is scheduled for April 6, 2023.
To receive a settlement payment, class members must submit a valid claim form by Feb. 27, 2023.