Loan Servicer Can Compel Borrower To Arbitrate

In Neal v. Navient Solutions, LLC, the Eighth Circuit Court of Appeals reversed the lower court, holding that a student loan borrower’s claims against the loan servicer must be arbitrated even though the servicer was neither a party to the loan agreement nor specifically referenced by the terms of the loan agreement.

The agreement provided for arbitration of claims brought by the borrower against the lender “and its successors and assigns, and any other holder of this Agreement.” The loan servicer did not specifically fit this definition but, as an agent of the assignee of the note, the appellate court nonetheless determined that arbitration was appropriate.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s