Martin v AES Settlement Conference Considerations

7/31/2019 Martin v AES Settlement Conference Considerations

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US District Judge VitalanoUS Magistrate Judge Bloom

Martin, Jessica (Plaintiff)150 74th Street, Apt 2HBrooklyn, NY 11209

VSAmerican Education Services (Defendant)Adam Michaels (Attorney)The New York Times Building37th Floor620 Eighth A venueNew York, NY 10018-1405Settlement Conference Considerations

ORIGIN L1 R 1 ~ ~ ~ n 1 ~ [ O

OCT 2 11PRO SE OFFICE

Please consider and review attached documents which are as followed: Credit Report,letters from American Education Services regarding deferment and forbearance periods,Letter of therapist visits. Plaintiff, Jessica Martin, Pro Se, did not include all of thedocumentation that she has regarding her case against American Education Services sinceit would be a repeat of the documentation that she already submitted to the court anddefendant via Original Complaint, Amended Complaint, and Request for SummaryJudgment. For this reason, Plaintiff is submitting this documentation to highlight factsregarding her complaint and the main reason for her suit against the defendant, AmericanEducation Servicing.1 Please refer to Plaintif f s recent attached credit reports from Transunion and

Equifax. From 09/2010 to 09/2009, American Education Services reportedPlaintiff as being 120-149 days to 180 or More Days Past Due to the CreditReporting Agencies. However on 8/27/2009, Plaintiff faxed and mailed therequired American Education Services Documentation that she was enrolled inschool full-time. Adelphi University also notified American Education Serviceselectronically, via National Clearing House, on 9/23/2009 of laintiffs full-timeenrollment status. Plaintiff was told by Customer Service Representative viaphone that the notification of full-time enrollment was received and she was in Inschool deferment; however not until 10/2010 did American Education Servicesupdate my American Education Services Account as deferred from 05/07/2009 to08/3112010; they subsequently sent Plaintiff a letter stating changedforbearance status. Even though Plaintiff was not in forbearance during thatperiod; she was in In school deferment since she was enrolled full-time atAdelphi University from 09/2009 to present and enrolled at Raritan ValleyCommunity College from OS/2009 to 08/2009. Currently Plaintiff s correctly inFull-time In School deferment status till 05/31/2012. Jessica 's complaint is thatAmerican Education Services recognizes/corrects their administrative errors at alater time after plaintiffs initial submissions of deferment/forbearance as

Case 1:11-cv-03319-ENV-LB Document 22 Filed 10/11/11 Page 1 of 15 PageID #: 173


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evidenced by notices that state changed forbearance status, changeddeferment status, and courtesy forbearance ; however they fail to correct theerrors on her credit reports (Experian, Equifax, and Transunion), which ruinedJessica's credit history. Plaintiff attests that is the only account on her creditreport which prohibits her from acquiring some of the things that are vital to herquality of life: housing, transportation, and education.

a 01120 2009 to 05/04/2009 Plaintiff was enrolled at Raritan ValleyCommunity College and received in school deferment and it wasacknowledge by customer service representatives. Plaintiff applied for inschool deferment prior to the start of the semester in the month ofDecember 2008. n the month of January, Raritan Valley CommunityCollege, notified American Education Services electronically via NationalClearing House of Plaintiff's enrollment. Her enrollment wasacknowledge by American Education Services for the period of the Springsemester of 0112012009 to 05 0412009; however Plaintiff's credit reportreflects her being delinquent from 150-179 days past due 180 or moredays past due during that period.b 01107 2009 to 01/19/2009 American Education Services placed onPlaintiff's account a courtesy forbearance ; however Plaintiff was ineconomic hardship forbearance during that time and also applied for andwas accepted for in school forbearance during that time period.c 01 0112008 to 12/30/2008 and 0110112008 to 12/30/2008 12 0112006 to

11/30/2007 Plaintiff applied for Economic Hardship Forbearance andconfirmed with Customer Service Representatives of receipt of applicationand subsequent acceptance. Since 09/2009 when following up withcustomer services representatives they made Plaintiff aware that she failedto submit the proper documentation or properly filled documentation thatwas the reason as to the failure of her request for forbearance to besubmitted on time causing delinquencies to appear on her credit report.However plaintiff attests that she indeed submitted the correct paper viafax and by mail and it was acknowledge and accepted by the defendantdespite additional applications or stated correct application. The plaintiffreasons that her request for Economic Hardship Forbearance waseventually applied to her account and believes that it was negligence andadministrative error that caused American Education Services to report heraccount delinquent since 04/2008 to 09/2010.d Plaintiff asserts that she has diligently applied and received the designatedforbearance and deferment; however American Education Servicesreported her information incorrectly to the credit bureaus. Plaintiffbelieves that the defendant did indeed inflict emotional distress to theplaintiff by repeatedly ignoring each request directly and indirectly (viacredit reporting agencies) for an adequate investigation and removal ofcredit reporting errors. The Plaintiff asks the court to not focus on thelength of economic hardship forbearance and deferment since Plaintiff hasevery intention to p yoff student loan debt prior to 09/2009 discovery oferrors and each application of forbearance and deferment; however



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through various reasons: unfortunate family tragedy and economiccircumstances she decided to invest her money into other areas ofobligations versus My Rich Uncle Student Loan at the time. The Plaintiffasserts that she had and still does have every intention to p yoff thatstudent loan.e. Plaintiff did not seek to file suit against My Rich Uncle since defendant,American Education Services, is servicing her loans and My Rich UncleStudent Loan Company is defunct.

2. Punitive Damages: Plaintiff has sought therapy/counseling over the matter againstthe Defendant and burden of apartment application rejections, not acceptingadmission into her first school of choice, deferment of career pursuits, failedattempts at correcting credit reporting errors, working full-time and going toschool full-time, and other matters which were named in original and amendedcomplaint. The Defendants action has caused insurmountable emotional andfinancial distress to the Plaintiff. Therefore the plaintiff is seeking and requestingpunitive and statutory damages.a. My original suit was for 878,000.00, 28,000 of which consists of 1 ,000

for each credit reporting error. 450,000 of which are statutory damages.400,000 of which are punitive damages.b. However, on October 1 t Plaintiff notified American Education Servicesvia Attorney Adam Michaels that she is willing to settle for the following:Removal of credit reporting errors, all of the 28 late payment status on my account within60 days. Fine: 28,000, 1,000 for every violation. Punitive and Statutory Damages of450,000. Total of 478,000 versus the 878,000, I have filed suit for.c. However, Plaintiff would like to request a change in settlement proposal.She would like the removal of credit reporting errors to occur within 30days instead of 60 days.

3. James Jarecki esq. in previous correspondence with Plaintiff via email madeJessica aware that with any settlement between the defendant and herself thatattorney fees will be deducted from any settlement agreement that is reached;however Plaintiff respectfully requests the US District Judge VitalanolUSMadgistrate Judge Bloom opinion in regard to that matter since as a Pro Selitigant, it has taken her a lot of time, research, and effort in conjunction withfamily, work, and academic obligations to file suit against American EducationServices. She does not believe that attorney fees should be deducted from anysettlement agreement and should be absorbed by the defendant. Plaintiff has doneher due diligence and is seeking quick resolution of this issue that has persistedfor approximately 2 years.

4. Plaintiff believes her settlement agreement is reasonable considering all the factsand damages inflicted on plaintiff and believes that plaintiff will win case inaudience of jury for full or most of the 878,000 requested in suit; however she iswilling to settle for 478,000/removal of all credit reporting errors (i.e., threecredit reporting agencies notified within 30 days).5. Plaintiff respectfully requests that the defendant, American Education Servicesanalyze each of their clients' accounts. Plaintiff believes that the defendant's



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negligence and lack o regard for their clients' credit records and reputationcauses irreparable harm to their clients.a In the unfortunate downturn o the economy these actions are veryharmful to the livelihood o many Americans who are new graduates,continuing their education, or attempting to improve their income potentialby advancing or changing their careers. Mismanagement o paperworkas defendant's attorney Adam Michael's stated, can really devastate thelives o their clients; such as the harm that was inflicted on the Plaintiff.The plaintiff suggests that American Education Services develops a CreditReporting Department within the company or establish some form oproject that looks over the accounts o their clients and make certain thatthere are no discrepancies or mismanagement o paperwork and therebyseek to correct it. As a student loan servicing company that is providingloans to students to help them reach their goals; it is feasible andobligatory to seek to help clients by making certain that the informationreflected on their American Education Services account is equivalent tothe information that is reported to the Credit Reporting Agencies;

especially i that information has been changed. Plaintiff believes thatAmerican Education Services has done a poor job servicing the studentloan accounts o behalf o their clients.

x__ __ ____ ~ _____________artin150 Street, Apt 2HBrooklyn, NY 11209cc. American Education Services



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File Number:Page:Date Issued:-Begin Credit Report-

2422212721 of 109/29/2011 TransUnion.

I f a n y i t ~ m on Your r e d i t report begins with'MED1'. It ~ c l u d e s ml: dicallnformatl?r .and the data fol\?wing 'MEDt' s not displayed to anyone butperml.tted by.law ;. ' , . ' i : h ; ',,'}\,,'f, , . , ,} , < '~ J e d l t Q r s m a Y C 9 I l s d e r , t Q , : u r a ~ l { ~ t s : e ; A t v e r s e 9 ( ; c q ~ l l t l l l f Q l J J 1 l t ( ) n : m p y genera Ily. Je repPJted for 7 yearsitstdellinqueljcy. dePefitdi,nlg I?n youi-state.of e s i ~ , e t i c e ; : r ~ e ~ ~ ~ r $ e ' i r i r ( i ' J i ~ U ~ ~ ; f n $ 1 ii ' . ,. has ,been printed i l 1 . ) b r a t ~ e t s ( or sygu\lm:l,erstand V9urreport:They f e n ( ) t , b ~ ~ c ~ ~ t e d Q f ~ ~ ~ < l e < } ~ l : l i ~ k ( ) ( s .

ES 5516551110PAO****POB 2461HARRISBURG, PA 17102-2461(800) 233-0557

Balance:Date Verified:High Balance:Collateral:Terms:

$38,37609/2011$28,125DEFERRED TO 06012012149 MONTHLY

- End of investigation results -

Pay Status: CURRENT; PAID OR PAYING ASAGREEDAccount Type: INSTALLMENT ACCOUNTResponsibili ty: INDIVIDUAL ACCOUNTDate Open: 11/2005

To view a free copy of your full, updated credit file, go to our website http://disclosure.transunion.com

-End of Credit Report-



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EQ f lIFAXCREDIT FILE: September 21, 2011Confirmation 1232015967Dear Jessica Martin:Your request for Equifax to reinvestigate certain items of your credit file is now complete.Below are your results and a report of your credit file revised, as applicable, as a result of the reinvestigation. If youhave additional questions regarding the reinvestigated items, please contact the source of that information directly.You may also contact Equifax regarding the specific information contained within this letter or report within the next60 days by visiting us at www. investigate.equifax.com or by calling a Customer Representative at (888) 588-0688from 9:00am to 5:00pm Monday-Friday in your time zone.Thank you for giving Equifax the opportunity to serve you.IThe Results Of Our ReinvestigationCredit Account Information(For your security, the last 4 digits of account number(s) have been replaced by *)(This section includes otJen and closed accounts reported bv credit grantors)Account History 1 : 30-59 Days Past Due 5 : 150-179 Days Past Due J : Voluntary SurrenderStatus Code 2 : 60-89 Days Past Due 6 : 180 or More Days Past Due K : Repossession3: 90-119 Days Past Due G : Collection Account L : Charge OffDescriptions 4 : 120-149 Days Past Due H : Foreclosure

>>> We have researched the credit account. Account # - 5516551110PAO* The resul ts are: The status of thisaccount has been updated. The prior paying history on this account has been updated. Additional information hasbeen provided from the original source regarding this item. If you have additional questions about this item pleasecontact: AeslMru Funding Spv Inc., 1200 N 7th St, Harrisburg PA 17102-1419 Phone: (800) 233-0557AeS/Mru Funding Spv Inc 1200 N 7th St Harrisburg PA 17102-1419: 800) 233-0557

OJ c O -0.., c.n


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. ase 1 D Q cument 11Case 1:11 cv 03319 ENV LB Document 1 Filed 07 07 11'-7 44 Pagel 71

Page 6 of 44 PagelD : 61M

JUNE Z7 2011

I WNDHKIB438 0158 8306 28L41JESSICA MARTIN150 74TH ST APT ZHBROOKLYN NV 11209-2239

DEAR CUSTOMER:

American Education ServicesP.O. Box 2461 Harrisburg. PA 17105-2461Toll-free 1-800-233-0557' TOO 717-720-2354Fax 717-720-39\6' IntemationaI717.720-3JOOwww.aesSuccess.org

ACCT NUMBER: 5516551110

This l e t t e r i s in r esponse to your r e c e n t i n q u i r y r e g a r d in g t h ede f e r ment s and /o r fo rbearances on your e d u c a t i o n a l l oan accoun t . Thee f f ec t ive d a t e s o f t h e defe rmen ts and fo rbea rances t h a t a re c u r r e n t l yapp l i ed to the loans l i s t e d in t he LOAN INFORMATION s e c t i o n a r e l i s t e dbelow. We t r u s t t h i s i n f o r ~ t i o n wi l l be of a s s i s t a n c e .

DEFERMENT FORBEARANCE TVPEEconomic Har dsh ip ForbearanceEconomic Hardship ForbearanceCour tesy ForbearanceSchool DefermentCour tesy ForbearanceSchool Deferment

BEGIN PATE1 2 / 0 1 / 0 60 1 / 0 1 / 0 80 1 0 7 0 90 1 2 0 0 90 5 0 7 0 90 9 0 1 1 0

END PATE11 /30 /0712 /30 /080 1 1 9 0 90 5 0 4 0 90 8 3 1 1 00 5 3 1 1 2

If you have any q u e s t i o n s you may c o n t a c t us a t t h e t e l e p h o n e number o raddres s shown above . loan Counselors a re a v a i l a b l e to d i scuss youraccount Monday th rough Fr idaY from 7:30 a .m. to 9 P , ET.

Customer Serv ice Depar tmentAmerican Educa t ion Se r v i c e s

PH13163sPS060HIST5516551110 5516551110 MR 00008111790001402



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1: 11 9 of 44 D :CaSe 1:11-cv-03319-ENV-LB Document 1 Filed 07 07 11 Page 8 of 44 Pagel 0 : 8-'AMERICAN EDUCATION SERVICESDEFERMENT/FORBEARANCE LO N DECLARATION

AceT S5 1655 1110 N ME I JESSICA MARTINREQUESTED TYPE BEGIN D TE END DATE

.DEFERMENT FULL TIME SCHOOL 09/01/10 05/31/11

lST DISBLO N PGM CURRENT OWNER DATE CURRENTPRINCIPAL

DATE I 10119/10

REPAYMENTSTART DATEHRUUGD MRU 11/03/05 .37 458.72 11/02/06

ACTION TYPEGR NTED DEFERMENT FULL TIME SCHOOLCHANGED'FORBEARANCE ADNlttISTRAflVe

GRACE ENDBEGIN D TE END1DATE DATE09 01 10 05 31 11OS/tl7/ 9 -----{)8/-3-1/10- ----- .

END OF REPORT

- .- --. - --,

'.



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8 Document 11 44 PagelD : 75Case 1:11-cv-03319-ENV-lB Document 1 Filed 07 07 11 Page 10 of 44 PagelD : 10. .

- ......,JAMERICAN EDUCATION SERVICESDEFERMENT/FORBEARANCE LOAN DECLARATION

ACCT I SS 1655 1110 NAME I JESSICA MARTINREQUESTED TYPE BEGIN DATE END DATE

. . .. . . .DEFERMENT FUll TIME SCHOOL 09101 10 05 31 12

DAN PGM CURRENT OWNERlRUUGD MRU

1ST DIS8DATE11/03/05

CURRENTPRINCIPAL37.765.57

DATEI 03/04/11

REPAYMENTSTART DATE

ACTION TYPE11/02/06GRACE ENDBEGIN DATE END ~ T DATEFuLl riMe scHOOL o;ioiiioCHANGED DEFERMENT 05/31/12

END OF REPORT



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- 1 17Secure mail from AES PHEAA

Secure Mai lboxVlfW MESSAGEs u eJECT: RE: F o r b e ~ r a l c e

Thank you for contacting American Education Services (AES), Your loan was in the In-School Status until May I2006 and the grace period was over November 1, 2006_ This status started on November 3 2005, the dale theloan was disbursed.An Economic Hardship Forbearance was applied to your account from December I, 2006 through May 31, 2007.An Economic Hardship Forbearance was applied to your account from June 1, 2007 through November 30 2007An Economic Hardship Forbearance was applied to your account from January J, 2008 through June 30 2008 .An E.conomic Hard.tomer ServiceDepartment hours of operation and telephone number, and will allow you to subm it inquiries via a secure c-rnail.If you have an online account, you ,ill find additional services available and may obtain account specificinformation_Sincerely,

ChasityAmerican Education Services

https:llsecuremall.aessuccess.orgfmessengcrldef/twpurllNonUscrPurl.do?x=d-37280445-t... 8 22 2011



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D E L P HI UNIVE RSIT YGarden City ew York 1153

Dear Jessica:

STUDENT COUNSELING CENTERUNIVERSITY CENTER - ROOM 31

tel 516) 877-3646fax 516) 877-3139

Enclosed are two copies of the letter you requested noting all of the dates of your attendance atthe Student Counseling Center. Per our conversation on Wednesday September 28 2011 I amsending these letters to your home address. Thank you.

ernadine Y Waller MA MHCCounselor



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DELPHI UNIVERSITYGarden City ew York 1153

September 30 2011

To Whom It May Concern:

STUDENT OUNSELING ENTERUNIVERSITY ENTER - ROOM SI

leI 516) 877-3646f x 516) 877-3139

This is to inform you that Jessica Martin was seen at the Student Counseling Center on thefollowing dates:1/15/107/6/107/13/103/9/116/30/118/3/118/10/118/17/118/31/119/14/11

~ c ?ernadme _ Waller MA MHCCounselor



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Gmail - Jessica Martin v American Education Services Page 1 o 1

Miss Martin

Jessica Martin v American Education ServicesJessica Martin To James J Jarecki Cc: [email protected]

Hello James and Adam

Thu Sep 29 2011 at 1:19 PM

Did you receive my notice for promissory note to be sent to me? My main objective is for the credit reportingerrors and the reported default to be removed from my credit report. If you would like us to discuss settlingthis matter we can go ahead and do so or having a settlement meeting with the Magistrate Judge Bloom orDistrict Judge Vitaliano.

Best RegardsJessica Martin732-742-0209 ,

https:llmail.google.com/maill?ui=2 ik=0977c6706f vicw=pt scarch=sent msg=132b6... 10 6 2011



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Gmail - Jessica Martin v American Education Services Page 1 of 1

Miss Martin < i,

Jessica Martin v American Education ServicesMichaels Adam Fri Sep 30 2011 at 11 :12 AMTo: "[email protected]"

Ms. Martin -As you are aware, we are legal counsel for the Pennsylvania Higher Education Assistance Agency d/b/aAmerican Education Services (AES/PHEAA). Because AES/PHEAA is now represented by counsel, pleasedirect all communications to me and do not contact any AES/PHEAA employee.It is my understanding that Mr. Jarecki from AES/PHEAA attempted to resolve this dispute before we werehired, that you insisted "not until AES/PHEAA filed an answer," and that Mr. Jarecki warned that once counselwas hired AES/PHEAA would have very little interest in discussing settlement. As was made clear in myletter to the Court, AES/PHEAA will be filing a motion to dismiss shortly.That being said, if there is a proposal you wish to make, I am willing to take that back to my client forconsideration.Adam B. MichaelsPepper Hamilton LLPThe New York Times Building620 Eighth AvenueNew York, NY 10018Tel. 212.808.2746Fax 866.422.0197

From: Jessica Martin [mailto:[email protected]]Sent: Thursday, September 29, 2011 1:20 PMTo: James J JareckiCc: Michaels, AdamSubject: Jessica Martin v. American Education Services[Ouoted text hidden]

rnis ernai is tor the use oj the intendeciintended

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only If you t13ve received ttl s email in error,Plus not keep. USC,, disclose. or (ls1nbute permisslOn.

of transrnittl 1g SOftvJEFB Viruses, we J d v i ~ e y d 10 c a ~ r y out own virus on anyHability for any loss or caused by software vIruses ; he contained in trlissubject to the p,ivi cge If ale the; recipient and you cio not wish tetutlHe then please respond to tile to J lis efk:)ct

https:llmail.google.com/maill?ui=2 ik=0977c6706f view=pt search=sent msg= 132bae... 1016/2011



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Gmail - Jessica Martin v American Education Services Page 1 o 1

Miss Martin

Jessica Martin v American Education ServicesJessica Martin Sat Oct 1 2011 at 12:35 AMTo: Michaels, Adam

Hello Mr Adams,Your pre-motion conference motion for partial dismissal was partially denied. The federal claim against thedefendant via the FCRA and the punitive and statutory damages are still held against the defendant. Pleaserefer to the docket report. Also, I am aware of my priviledges/rights, I have requested an Alternative DisputeResolution Conference today. I do anticipate winning my case in front o a the US District Judge or trialby Jury; since I have substantial proof and facts and most importantly documentation with dates andcorrespondance. I am a pro se litigant and therefore I am doing the best that I can with the legal knowledgethat I have to re-establish my perfect credit rating prior to the discovery o the credit reporting errors thatAmerican Education Services inflicted upon me without diligently seeking to resolve my requests for properinvestigation and removal for 2 years.I believe it is in the best interest o the defendant to seek to resolve this case through ADR conference. Iwanted an answer or some attempt for the company to explain itself and actions first prior to discussion;however I see that it may take a long time and the trial process is lengthy. Mind you, my main objective is toclear these errors from my credit report; not to be in court for several months. Therefore I am willing to settle.ADR are arranged to deter high legal expenses, such as attorney fees, that may be acquired through thelengthy legal process.My proposal is:1 Removal o credit reporting errors, all o the 28 late payment status on my account within 60 days. Fine:$28,000, $1,000 for every violation2 Punitive and Statutory Damages o $450,000Total of $478,000 versus the 878,000, I have filed suit forI am willing to negotiate with the defendant without the US District Judge being the mediator or with the USDistrict Judge being the mediator. If the request for ADR is granted; it is up to your judgement if you would likethe US District Judge to mediate any form o settlement; however we can seek to make a settlementnow. Feel free to counteroffer. I do believe my case will stand solid by Jury or the US District Judge.

Thank you so much.Jessica Martin732-742-0209[Quoted text hidden]

https:llmail.google.com/maill?ui=2 ik=0977c6706f view=pt search=sent msg= 132bdc... 10 6 2011


Martin v AES Settlement Conference Considerations

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Transcript of Martin v AES Settlement Conference Considerations