WELLS FARGO STUDENT LOAN LAWSUIT DISMISSED
Although not as large as Navient or National Collegiate Trust, Wells Fargo
takes up a large stake in the private student loan market. Wells Fargo
is aggressive when it comes to the collection of defaulted private student
loans and initiates litigation often in order to obtain judgements against
consumers. A judgment, most often on default results in wage garnishment,
bank levy, property liens and judgment interest accruing on the total
debt. Wells Fargo can be defended against however, and are often more
reasonable when it comes to resolving student loan matters especially
in settlement. Wells Fargo frequently accepts settlements to resolve private
student loans for 70% or more off of the entire balance of the loan. There
are many factors that affect that range and result, but thes fantastic
settlements can be achieved regularly with Wells Fargo.
There are several meritorious defenses that can be used against Wells
Fargo when a consumer debt lawsuit is initiated. Standing and Hearsay
defenses can help protect the consumer against judgment and project leverage
if seeking to obtain a settlement. In this matter, our client was sued
by Wells Fargo for over $110,000. Wells Fargo retained Harris Beach, a
debt collection law firm to sue our client. Harris Beach is the law firm
that most often handles litigation and collection matters for Wells Fargo
private student loans in New York. After submitting our answer with defenses,
we requested discovery from Harris Beach to show proof that this student
loan was our client’s and to prove that the amount allegedly owed
had been accounted for properly. After Harris Beach failed to respond
to multiple discovery requests, we realized that they likely did not have
the documents necessary to establish their burden of proof in court. The
case against our client was dismissed due to this lack of proof tying
him to this debt and over $110,000 of alleged debt was discharged along
with this matter.