Frequently Asked Questions
- What is the case about and why did I receive the Legal Notice?
- Why is there a Settlement?
- Why was the original Settlement amended?
- What are the important new terms in the Amended Settlement?
- Am I a Class Member?
- Can I be a Class Member if I only received text messages?
- What are the benefits of the Amended Settlement and how much might I receive?
- Are the Amended Settlement benefits available now?
- What happens if I already submitted a Claim Form and a Revocation Request Form?
- What happens if I already submitted only a Revocation Request Form?
- What happens if I already submitted only a Claim Form?
- What happens if I do nothing at all?
- If I remain in the Settlement Class, what rights am I giving up?
- Why would I ask to be excluded?
- How do I exclude myself from the Settlement Class?
- What if I excluded myself from the original Settlement and now want to participate in the Amended Settlement?
- Can I object to the Amended Settlement or to Class Counsel’s fee request?
- When and where will the Court decide whether to approve the Settlement?
- Do I have to attend the Fairness Hearing?
- May I speak at the Fairness Hearing?
- Do Class Members have a lawyer in this case?
- How will Class Counsel and the Representative Plaintiffs be paid?
- Where can I get more information?
- May I contact Sallie Mae directly?
1. What is the case about and why did I receive the Legal Notice?
The lawsuit alleges that Sallie Mae or another affiliate or subsidiary of SLM Corporation made automated calls or text messages to the Representative Plaintiffs and Class Members on their cellular telephones. The Representative Plaintiffs claim that these practices violate the Telephone Consumer Protection Act, 47 U.S.C. § 227, et seq. (the “TCPA”).
Sallie Mae strongly denies all of the claims and any wrongdoing, and has agreed to settle only to avoid the burden and cost of litigation. Judge James L. Robart of the United States District Court for the Western District of Washington is overseeing this class action. The case is known as Arthur, et. al. v. Sallie Mae, Inc., No. 10-cv-00198-JLR.
The parties provided the Notice to inform potential Class Members about the amended terms of the settlement of this class action lawsuit, before the Court decides whether to give final approval to the Amended Settlement. The Notice explains the lawsuit, the Amended Settlement, your legal rights, what benefits are available, who is eligible for those benefits and how to get them. If the Amended Settlement is ultimately approved, the benefits will be provided to Class Members.
The Court did not decide in favor of the Representative Plaintiffs or Sallie Mae. The Representative Plaintiffs and Class Counsel believe that the claims asserted in the action have merit, but that the Amended Settlement is in the best interests of the Settlement Class. Class Counsel have evaluated information made available in the course of the action and settlement negotiations and have taken into account the risks and uncertainties of proceeding with the action. Those risks include the uncertainty of prevailing on the merits, proving substantial damages at trial, and prevailing on post-trial motions and likely appeals. Based upon their consideration of these factors, and on the substantial time and expense that will be incurred, Class Counsel believe it is in the best interest of the Settlement Class to settle the action on the terms described below.
This Amended Settlement does not imply that any court has found or would have found that Sallie Mae violated the law or that the Settlement Class would have recovered any amount of damages if the action was not settled.
3. Why was the original Settlement amended?
After the original Settlement was reached, Sallie Mae discovered additional Class Members who were not considered during settlement negotiations. The Amended Settlement requires Sallie Mae to pay an additional $4.65 million into the Fund to cover potential claim payments to, and notice and administration costs pertaining to, these newly identified Class Members. The total Fund pursuant to the Amended Settlement is now $24.15 million. No portion of the increased contribution will be sought, or paid, as an award of attorneys’ fees or incentive payments to the Representative Plaintiffs.
4. What are the important new terms in the Amended Settlement?
Besides requiring Sallie Mae to pay an additional $4.65 million into the Fund, the Amended Settlement provided for extended deadlines for Class Members to file Claim Forms, Revocation Request Forms, Objections, and Exclusion Requests. The Amended Settlement Agreement also provides that Class Members who have been 180 days or more delinquent on an extension of credit at any time are now eligible for a cash award if they have since repaid that extension of credit in full; otherwise they are eligible only for a reduction of their existing debt, which is the same relief those Class Members were entitled to under the original Settlement Agreement. The Amended Settlement Agreement also allowed Class Members who excluded themselves from the Settlement to withdraw that exclusion by written request on or before the objection deadline. Finally, the Amended Settlement provides for the distribution of Class Notice to the newly identified Class Members who have not yet received notice of the Settlement, and to all other Class Members to apprise them of the terms of the Amended Settlement and related extensions of deadlines.
The Settlement Class includes all persons to whom, on or after October 27, 2005 to September 14, 2010, Sallie Mae or any other affiliate or subsidiary of SLM Corporation placed a non-emergency automated call to a cellular telephone. Affiliates or subsidiaries of SLM Corporation that made such automated calls include Academic Management Services Corp.; Academic Management Services, Inc.; AFS US, Inc.; AFS-HOV LLC; AMS Education Loan Trust; Arrow Financial International, LLC; Arrow Financial Services, LLC; Arrow Global, LLC; Asset Performance Group, Inc.; Asset Performance Group, LLC; General Revenue Corporation; GRP/AG Holdings, LLC; GRP Financial Services Corp.; Nellie Mae Corporation; Nellie Mae Holding, LLC; Noel-Levitz, Inc.; Pioneer Credit Recovery, Inc.; Pioneer Mortgage Inc.; Sallie Mae Bank; Sallie Mae – Canada Financial Corporation; Sallie Mae Education Trust; Sallie Mae Home Loans, Inc.; Sallie Mae, Inc.; SLM DE Corporation; SLM Financial Corporation; Student Assistance Corporation; SLM Corporation; SLM Education Credit Finance Corporation; SLM Education Loan Corp.; SLM Mortgage Corporation; Southwest Student Services Corporation; Student Loan Finance Association, Inc.; Student Loan Funding Resources LLC; TrueCareers, Inc.; Upromise, Inc.; Upromise Investments, Inc.; and USA Group Loan Services, LLC.
Consistent with applicable regulations and other legal authority interpreting the TCPA, the word “call” encompasses both voice calls and text messages to wireless numbers including, for example, short message service (SMS) calls.
Excluded from the Settlement Class are SLM Corporation, Sallie Mae and other affiliates or subsidiaries of SLM Corporation, and any entities in which any of such companies has a controlling interest, the Judge to whom the Action is assigned and any member of the Judge’s staff and immediate family, as well as, all persons who validly requested exclusion from the Settlement Class.
All Class Members who did not validly exclude themselves will be bound by all determinations and judgments in the action.
6. Can I be a Class Member if I only received text messages?
Yes. Consistent with applicable regulations and legal authority interpreting the TCPA, the word “calls” encompasses both voice calls and text messages to wireless numbers including, for example, short message service (SMS) calls.
7. What are the benefits of the Amended Settlement and how much might I receive?
Revocation Request. If you submitted a Revocation Request, neither Sallie Mae or any other affiliate or subsidiary of SLM Corporation (including Academic Management Services Corp.; Academic Management Services, Inc.; AFS US, Inc.; AFS-HOV LLC; AMS Education Loan Trust; Arrow Financial International, LLC; Arrow Financial Services, LLC; Arrow Global, LLC; Asset Performance Group, Inc.; Asset Performance Group, LLC; General Revenue Corporation; GRP/AG Holdings, LLC; GRP Financial Services Corp.; Nellie Mae Corporation; Nellie Mae Holding, LLC; Noel-Levitz, Inc.; Pioneer Credit Recovery, Inc.; Pioneer Mortgage Inc.; Sallie Mae Bank; Sallie Mae – Canada Financial Corporation; Sallie Mae Education Trust; Sallie Mae Home Loans, Inc.; Sallie Mae, Inc.; SLM DE Corporation; SLM Financial Corporation; Student Assistance Corporation; SLM Corporation; SLM Education Credit Finance Corporation; SLM Education Loan Corp.; SLM Mortgage Corporation; Southwest Student Services Corporation; Student Loan Finance Association, Inc.; Student Loan Funding Resources LLC; TrueCareers, Inc.; Upromise, Inc.; Upromise Investments, Inc.; and USA Group Loan Services, LLC.) shall make, nor knowingly authorize anyone acting on its behalf to make, automated calls to the cellular telephone number that you list on the Revocation Request Form. If you did not submit this request, you will be deemed to have provided prior express consent to the making of automated calls by Sallie Mae or any other affiliate or subsidiary of SLM Corporation to any phone numbers reflected in such entities’ records.
The Revocation Request Form relates only to the limitations of the TCPA and does not change your rights under other federal or state statutes. You must have submitted the Revocation Request Form by mail or online by no later than August 31, 2012.
Monetary Relief. Each Monetary Award may be reduced pro rata, based on the number of valid and timely claims received. While it is not possible to predict the precise amount of the Monetary Award until all claims have been submitted, the parties estimate that the amount of the Monetary Award will be $20.00 to $40.00 each. In no event shall the Monetary Award exceed a total of $500.00 per Settlement Class Member.
Class Members who submitted a valid and timely Claim Form will be eligible for the following award options:
- Class Members who have never been 180 days or more delinquent on their payments on extensions of credit owned or serviced by Sallie Mae or any other affiliate or subsidiary of SLM Corporation were entitled to make claims for: (a) a cash payment (the “Cash Award”); or (b) a one-time reduction from the principal balance of the Settlement Class Member’s outstanding extension of credit (the “Reduction Award”).
- Class Members who have been 180 days or more delinquent but who subsequently repaid the extension of credit in full were entitled to make a claim for a cash payment (the “Cash Award”).
- Class Members who have, at any time, been 180 days or more delinquent on their payments on extensions of credit owned or serviced by Sallie Mae or any other affiliate or subsidiary of SLM Corporation, and have not repaid their loan in full, were not entitled to make a claim for a Cash Award, but rather were eligible for a one-time reduction from the principal balance of the Class Member’s outstanding extension of credit (the “Reduction Award”).
- Class Members whose extensions of credit have been charged off for purposes of accounting were not entitled to a Cash Award or Reduction Award. Instead, if there is any money remaining in the Fund after payment of various settlement costs and monetary awards, such monies will be distributed to court-approved, non-profit charitable organization(s) with the mission of promoting access to higher education. In addition, with respect to Class Members who do not have and have not had any lending or servicing relationship with Sallie Mae, or any other affiliate or subsidiary of SLM Corporation, Sallie Mae will make a minimum cy pres payment of $85,000 to organization(s) devoted to promoting higher education.
8. Are the Amended Settlement benefits available now?
No. These benefits will become available at an undetermined date in the future if the Court grants final approval of the Amended Settlement and all appeals are resolved. There is no guarantee that money or benefits will ever be distributed.
9. What happens if I already submitted a Claim Form and a Revocation Request Form?
If you submitted a Claim Form and a Revocation Request Form and are satisfied with the terms of the Amended Settlement, you do not need to do anything further.
10. What happens if I already submitted only a Revocation Request Form?
If you submitted only a Revocation Request Form and did nothing before the deadline described in the Notice, you will not receive any monetary benefits under the Settlement. You will be considered part of the Settlement Class, and all of the Court’s orders will apply to you and legally bind you. Therefore, in order to receive any monetary benefit from the Settlement, you must have submitted a valid Claim Form postmarked by August 31, 2012, or submitted via this website by August 31, 2012.
11. What happens if I already submitted only a Claim Form?
If you submitted only a Claim Form and do nothing before the deadline described in this Notice, you will not revoke any entity’s ability to contact you on a cellular telephone through automated calls. You will lose the right to sue Sallie Mae and any other affiliate or subsidiary of SLM Corporation regarding any issues relating to the action. You will be considered part of the Settlement Class, and all of the Court’s orders will apply to you and legally bind you. Therefore, in order to stop automated calls to your cellular phone, you must have submitted a valid Revocation Request Form postmarked by August 31, 2012, or submitted via this website by August 31, 2012.
12. What happens if I do nothing at all?
If you did nothing before the deadline described in this Notice, you will not receive any benefits under the Settlement. You will not revoke any entity’s right to contact you on a cellular telephone through automated calls. You will not receive any monetary award in this Settlement. You will have lost the right to sue Sallie Mae and any other affiliate or subsidiary of SLM Corporation regarding any issues relating to the action. You will be considered part of the Settlement Class, and all of the Court’s orders will apply to you and legally bind you. Therefore, in order to receive any benefit from the Settlement, you must have submitted a valid Claim Form postmarked by August 31, 2012, or submitted via this site by August 31, 2012. You also must have submitted any Revocation Request by the same date.
13. If I remain in the Settlement Class, what rights am I giving up?
If you remain in the Settlement Class, you give up your right to sue in court or arbitration or be part of any other lawsuit or arbitration against Sallie Mae or any other affiliate or subsidiary of SLM Corporation regarding any issues relating to the settled claims. Additionally, all of the Court’s orders will apply to you and legally bind you.
14. Why would I ask to be excluded?
You may have wanted to exclude yourself from the Settlement Class if you already have filed (or intend to file) a lawsuit or arbitration against Sallie Mae and/or another affiliate or subsidiary of SLM Corporation and want to continue that lawsuit or arbitration individually, on your own behalf. If you did not exclude yourself, you will be legally bound by all orders of the Court in the above case regarding the Settlement Class and the Amended Settlement. If the Court approves the Amended Settlement, all of the settled claims will be released. All persons in the Settlement Class who did not ask to be excluded will be forever barred from asserting against the released parties any and all actions, claims, causes of action, proceedings, or rights of any nature and description whatsoever regarding the action, as more fully described in the Amended Settlement Agreement.
15. How do I exclude myself from the Amended Settlement?
You were entitled to exclude yourself from the Settlement Class by sending a written request to the Claims Administrator postmarked no later than July 3, 2012.
You will not receive any money or other benefits from the Amended Settlement if you excluded yourself.
If you opted out of the original Settlement, you had the option of withdrawing your exclusion request and participating in the Amended Settlement by contacting the Claims Administrator in writing no later than July 3, 2012.
17. Can I object to the Amended Settlement or to Class Counsel’s fee request?
Yes, but only if you did not exclude yourself from the Settlement Class and if you submitted your objection on or before July 3, 2012. Objecting is simply telling the Court that you do not like something about the Amended Settlement or Class Counsel’s fee request. You will still be bound by all Court orders, even if your objection is rejected. All objections that were filed by July 3, 2012 were considered prior to the Court’s final approval at the Fairness Hearing on September 14, 2012 at 1:30 p.m. If you did not file an objection, you waived your right to appeal any Court order or judgment related to the Amended Settlement.
18. When and where will the Court decide whether to approve the Settlement?
The Court held a Fairness Hearing on September 14, 2012 at 1:30 p.m. at the U.S. District Court for the Western District of Washington 700 Stewart Street, Seattle, WA 98101. At the Fairness Hearing, the Court considered if the Amended Settlement was fair, reasonable and adequate, and whether it should be granted final approval. The Court considered all objections. Class Counsel asked the Court for approval of their request for attorneys’ fees, costs, expenses in the amount of $4,830,000, and incentive awards to the Representative Plaintiffs in an amount up to $2,500 each.
19. Do I have to attend the Fairness Hearing?
No. Your attendance at the Fairness Hearing is not required. Class Counsel will answer any questions the Court may have. If you submitted a written objection or comment, you do not have to come to the Fairness Hearing to talk about it. As long as you filed your written objection on time, the Court will consider it. However, you or your attorney may attend the hearing if you would like at your own expense.
20. May I speak at the Fairness Hearing?
Yes. You may speak at the Fairness Hearing, but only if you filed a written objection or comment as described above. You may also enter an appearance through an attorney hired at your own expense. Your objection must have included a statement that you intend to appear and be heard at the Fairness Hearing.
21. Do Class Members have a lawyer in this case?
Yes. The Court appointed several law firms, including Terrell Marshall Daudt & Willie PLLC, Lieff Cabraser Heimann & Bernstein, LLP, Meyer Wilson Co., LPA, Hyde & Swigart, Kazerouni Law Group, and Law Offices of Douglas J. Campion to represent you and the other Class Members. They are called “Class Counsel.”
22. How will Class Counsel and the Representative Plaintiffs be paid?
The Fund will be used to pay Class Counsel’s Court-awarded attorneys’ fees and costs, and service awards to the Representative Plaintiffs. At the Fairness Hearing, Class Counsel asked the Court for approval of attorneys’ fees not to exceed $4,830,000 of the Fund and for reimbursement of expenses incurred as a result of the action, along with service awards up to $2,500 for each of the Representative Plaintiffs.
The motion(s) by Class Counsel for attorneys’ fees, for reimbursement of expenses and for the service awards for the Representative Plaintiffs and the Order approving Class Counsel’s request is available on this website.
23. Where can I get more information?
The Notice is only a summary of relevant court documents and the Amended Settlement Agreement. Complete copies of case-related documents are available on this site. If you have further questions, you may call the toll free number 1 (888) 730-7196 or write to the Claims Administrator:
Arthur TCPA Claims Administrator
c/o The Garden City Group, Inc.
P.O. Box 9621
Dublin, OH 43017-4921
If you wish to contact Class Counsel, you may contact them directly as follows:
Daniel M. Hutchinson
Lieff Cabraser Heimann & Bernstein, LLP
275 Battery Street, 29th Floor
San Francisco, CA 94111-3343
24. May I contact Sallie Mae directly?
No. Please do not contact the Court or Sallie Mae’s attorneys. They are not in a position to give you any advice.
