Suing Great Lakes and Consumer Reporting Agencies for Illegally Damaging Borrowers’ Credit
Sass v. Great Lakes
On May 20, individuals representing a class of millions of student loan borrowers sued Great Lakes and the three national credit reporting agencies for unlawfully reporting borrowers’ student loan payments in violation of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). This lawsuit, supported by the SBPC and filed by Towards Justice and Berger Montague, seeks to end this illegal credit reporting for millions of borrowers, and to reverse the negative consequences of these companies’ abuses.
On March 27th, Congress required that while student loan payment obligations are suspended through September 30, 2020, the information that appears on borrowers’ credit reports each month must be “treated as if it were a regularly scheduled payment made by a borrower.” Great Lakes and the consumer reporting agencies failed to properly execute this protection, leading to unwarranted drops in borrowers’ credit scores.
This lawsuit is part of an ongoing effort by the SBPC to fight on behalf of borrowers who have been denied the protections guaranteed under the CARES Act. This case was filed in federal district court for the Northern District of California.
The complaint is available here: https://protectborrowers.org/wp-content/uploads/2020/05/sass_v_great_lakes-1.pdf