By Arvind Padmanabhan
News India-Times, Dec. 26, 2003
A class action suit has been filed against Pace University in the New York State Supreme Court in Manhattan alleging that the educational institution has been deceptively and fraudulently collecting what it termed as "collection costs" on outstanding tuition fees from students.
The lawsuit, brought by New York Attorney Krishnan Chittur on behalf of former student Marc Sherman, has claimed compensatory and punitive damages from Pace University of not less than $100 million.
According to the lawsuit, Sherman enrolled with the university in August 1999 for the Fall semester, which he completed. He thereafter enrolled for Spring 2000 semester and paid $1,600 in advance toward tuition fee, but was unable to complete the semester. On Oct. 2, Pace demanded the balance amount of $1,842 toward tuition fee and $921.50 toward collection costs. This demand for collection costs was totally unauthorized, illegal and unconscionable, the lawsuit says.
A spokesperson for Pace University declined to comment about the case. "As a matter of policy, Pace does not comment on pending litigations," Chris Cory, director of public information, told News India-Times.
286 Madison Avenue Suite 1100
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Tel: 212 370-0447 Fax: 212 370-0465 Email: kchittur@chittur.com