Lincoln-based student loan company Nelnet has agreed to pay $1.2 million to settle a class-action lawsuit that accused it of illegally recording collections calls.
The federal lawsuit, filed in California, accused Nelnet Servicing LLC of calling lead plaintiff Than Zaw about a relative's student loan debt. Zaw said that call and others were recorded without the receiver's permission, a violation of California privacy laws.
Nelnet did not admit any wrongdoing as part of the settlement. In a statement, the company said it believes the claims in the lawsuit were questionable, but is happy to "put this matter behind us for an immaterial amount to avoid the costs and distractions of ongoing litigation."