Frequently Asked Questions

The lawsuit alleges that Defendant violated state debt collection and student borrower protection laws by improperly assessing Fees for payment services when Class Members made payments on federal Perkins loans over the phone or internet. Defendant denies any and all wrongdoing.  Defendant has agreed to the Settlement solely to avoid the burden, expense, risk, and uncertainty of continuing the Lawsuit.

The Parties’ records indicate that you are a Class Member. The Settlement Class is defined as: all natural persons (1) within the United States who paid a Fee to Defendant Heartland ECSI (“Defendant”) for (2) optional payment services to make a Perkins student loan payment by telephone, IVR (interactive voice response), or the internet (“Processing Fee”), between December 6, 2018, through and including October 31, 2023. 

(1)    Payment to Class Members. Heartland ECSI will establish a Settlement Fund in the amount of $3,650,000 from which Class Members will receive payments by check or by electronic payment method. The Settlement Fund, net of any Administration Costs, Incentive Award, and Attorney’s Fees and Expenses awarded by the Court will be distributed to Settlement Class Members who file a timely claim pro rata according to the amount of Processing Fees each Class Member paid.

Class Members must visit the Settlement Website to make a claim by completing the Claim Form online. They can elect to receive their Settlement Payment via a check or an electronic payment method (PayPal, Zelle, Venmo, etc.). 

Class Members who do not elect to receive their Settlement Payment via an electronic payment method will be mailed a check. Checks will be valid for 90 days. 

Please understand that these sums may be taxable, that such tax consequences are further described in the Settlement Agreement, and that counsel is not giving you any tax advice. You are encouraged to seek tax advice without delay from a tax professional.

(2)    Incentive Award. The Plaintiffs who brought this lawsuit will each request a service award of no more than $10,000 for serving as Class Representatives.

(3)    Attorney’s Fees and Costs. Class Counsel are Bailey Glasser, LLP and Tycko & Zavareei. They will request Attorney’s Fees and Expenses of no more than one-third (33.33%) of the total amount of the Settlement Fund, plus their litigation expenses. The Court will determine the appropriate amount of the Attorney’s Fees and Expenses and awards to be paid. The Settlement is not conditioned upon approval of any of the Attorney’s Fees and Expenses, or Incentive Award amounts.

(4)    Opinion of Class Counsel. Class Counsel considers it to be in the best interest of the class to enter into this Settlement on the terms described in light of the potential recovery, Defendant’s defenses, and the uncertainties of continued litigation.

(5)      Release.  In connection with the Settlement, the Final Approval Order shall provide that the Action is dismissed with prejudice as to the Class Representatives and all Class Members.  As of the Effective Date, the Releasing Parties shall be deemed to have, and by operation of the Final Approval Order shall have fully, finally, and forever released, resolved, relinquished, and discharged each and all of the Released Parties from the Released Claims. The Releasing Parties further agree that they will not institute any actions or causes of action (in law, equity, or administratively), suits, debts, liens, or claims, known or unknown, fixed or contingent, which they have or claim to have, in state or federal court, in arbitration, or with any state, federal, or local government agency, or with any administrative or advisory body, arising from or reasonably related to the Released Claims. The release does not apply to persons who fall within the definition of the Settlement Class, but who submit a timely opt-out in accordance with the terms of this Agreement.

For purposes of this Settlement Agreement, “Released Parties” means Heartland ECSI; all of Heartland ECSI’s acquired entities, predecessors, successors, affiliates, parent companies, and subsidiaries (collectively, “Affiliates”); any person, company, trust, or other entity for which Heartland ECSI services loans, as well as any person, company, trust, or other entity that has any interest in any loan to a Settlement Class Member that Heartland ECSI serviced; and all of the aforementioned’ s past or present predecessors, successors, direct or indirect parents, subsidiaries, associates, affiliates, assigns, employers, employees, shareholders, principals, agents, consultants, independent contractors, insurers, directors, officers, partners, attorneys, accountants, financial advisors, legal representatives, and successors in interest, franchisees and persons, firms, trusts, and corporations (each solely in their respective capacity as such).

For purposes of this Settlement Agreement, “Released Claim” or “Released Claims” means all rights, duties, obligations, claims, actions, causes of action or liabilities, whether arising under local, state or federal law, whether by Constitution, statute, contract, rule, regulation, any regulatory promulgation (including, but not limited to, any opinion or declaratory ruling), common law or equity, whether known or unknown, suspected or unsuspected, asserted or unasserted, foreseen or unforeseen, actual or contingent, liquidated or unliquidated, punitive or compensatory, as of the date of the Final Approval Order, that relate, concern, arise from, or pertain in any way to the Released Person’s conduct, policies, or practices concerning Processing Fees on federal Perkins loans charged by Heartland ECSI, including but not limited to charges for making payments over the phone or internet and claims or causes of action under, without limitation, the federal Fair Debt Collection Practices Act, state debt collection law, state student borrower bill of rights, breach of contract, unjust enrichment, and for violation of any other law.  As to the Released Person’s conduct, policies, or practices concerning Processing Fees on federal Perkins loans charged by Heartland ECSI, the Releasing Parties waive any principles of law similar to and including Section 1542 of the California Civil Code, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

The Releasing Parties agree that Section 1542 and all similar federal or state laws, rules, or legal principles of any other jurisdiction are knowingly and voluntarily waived in connection with the aforementioned claims released in the Settlement Agreement and agree that this is an essential term of the Settlement Agreement. The Releasing Parties acknowledge that they may later discover claims presently unknown or unsuspected, or facts in addition to or different from those which they now believe to be true with respect to the matters released in this Settlement Agreement. Nevertheless, Plaintiffs and the Class Members fully, finally, and forever settle and release the Released Claims. 

    
For purposes of this Action, “Releasing Parties” means the Plaintiffs, all Class Members and any individual acting on their behalf, including but not limited to, any present, former, and future spouses, dependents, children, parents, as well as the present, former, and future estates, heirs, executors, administrators, representatives, agents, attorneys, partners, successors, predecessors in interest, assigns, and any other representatives of each of them.

(6)    Binding Effect of Class Judgment.  Upon conclusion of the Settlement, the judgment of the Court will be binding upon all Class Members who do not opt out of the Settlement.
 

Pursuant to Order ECF No. [42], the Final Approval Hearing scheduled for August 5, 2024, at 1:30 P.M. (PST) will be conducted by Zoom Video Conference. The parties are directed to contact the courtroom administrator, Karen Walker, at (775) 686-5918 or [email protected], by Thursday, August 1, 2024, to provide the e-mail address of all counsel who will be attending the hearing.

The following Zoom Video Conference Instructions shall be adhered to as follows:
Instructions and zoom invite to the scheduled hearing will be sent via e-mail at least ONE (1) day prior to the hearing to the participants e-mail provided to the Court.
1. Log on to the Zoom five (5) minutes prior to the hearing time.
2. Mute your sound prior to entering the hearing.
3. Do not talk over one another.
4. State your name prior to speaking for the record.
5. Do not have others in the video screen or moving in the background.
6. No recording of the hearing.
7. No forwarding of any video conference invitations.
8. Unauthorized users on the video conference will be removed.

Members of the public may access and listen to the hearing by calling 1-888-557-8511, at least 5 minutes before the scheduled hearing time. The access code is 3599743 and the pass code is 8524. Telephonic participants must mute their telephone after identifying themselves to the courtroom administrator. Telephonic participants must not place their telephone on hold during the hearing.

(1)   Do Nothing. You will not receive a payment under the Settlement. You will also give up your right to object to the Settlement and you will not be able to be part of any other lawsuit about the claims this Settlement resolves.

(2)    Receive a Settlement Payment. To receive a Settlement Payment, you must visit the Settlement Website by May 28, 2024 to submit a Claim Form online and select your desired method of payment (paper check, Zelle, Venmo, PayPal., etc.). If the Settlement is approved, you will be bound by all of its terms, and you will be paid pursuant to your desired payment method.  

(3)    Exclude Yourself. You may “opt out” and exclude yourself from the Settlement. If you opt out, you will not receive any cash payment, and you will not release any claims you may have against Defendant. If you opt out, you will be free to pursue whatever legal rights you may have by pursuing your own lawsuit against Defendant at your own risk and expense. To exclude yourself from the Settlement, you must mail a letter to the Settlement Administrator (address below) stating that you wish to do so. Your letter must include your name, address, telephone number, the last four digits of your Social Security Number, and a statement that you are seeking exclusion. You must postmark your letter no later than June 3, 2024; OR

(4)    Object to the Settlement.  If you object to the Settlement, you must file with the Court a signed notice of your intention to appear; a statement saying that you object to the Settlement in Nguyen v. Educational Computer Systems, Inc., d/b/a/ Heartland ECSI, Civil Action No. 2:22-cv-0173-PLD; submit documentary proof that you are a member of the Settlement Class; provide your name, address and telephone number; specifically state the basis for your objection(s); identify whether the objection applies to the entire Settlement Class, a specific subset of the Settlement Class, or only to the objector; and serve copies of the foregoing and all other papers in support of such objection(s) upon the following:

The objection must also state whether you or your own lawyer would like to appear and speak at the Court’s Final Approval Hearing, at your own cost. You do not need to appear at the Final Approval Hearing to object to the Settlement. If you intend to call witnesses at the Final Approval Hearing, the objection should list any witnesses you intend to call.

PLEASE DIRECT QUESTIONS TO:

Nguyen et al. v. Educational Computer Systems, Inc.
c/o Kroll Settlement Administration 
PO Box 5324 
New York, NY 10150-5324
(833) 462-3516