Class Action Hero Stops Debt Collector Taking Tax Refunds

Jaimaria Bodor

Student Loans

My student loan debt collection experience has been a long, taxing process. When I signed up for additional schooling with Corinthians College, I was told I would be receiving grants. Apparently, that was not true, as I later learned about the existence of my student loans.  In the years past, my tax refund was taken and applied to these fraudulent loans without my consent. I was shocked and angered by this, as I needed the tax refund money to pay for my expenses such as gas, utilities, etc. Eventually, I learned that I could submit a Borrower Defense application to challenge the loans, and that while my application was pending, debt collectors would not be able to take my tax refund like they did before. In fact, I submitted such an application before filing my 2018 tax return and I called the Department of Education to confirm that I would get my tax refund from the IRS since my Borrower Defense application was pending. 

Jaimaria’s son, Connor.

Therefore, I was even more shocked and angry to find out that my 2018 tax refund, in the amount of $79.00, was being withheld despite the fact that I had an active Borrower Defense application pending before the Department of Education.  Later, I discovered that the reason this happened was because Maximus, a debt collector hired by the Department of Education, didn’t notify the IRS of my application's status on time.  Because of this, my tax refund was taken from me when it shouldn't have.  I also learned that there were many other borrowers, just like me, who also had their 2018 tax refunds withheld to pay for their student loans—all because of Maximus.

Not Receiving My Tax Refund

In 2019, I was working as an assistant manager at Burger King, where I was paid $14 per hour. I regularly worked from 5:00 a.m. to 6:00 p.m., six days a week. and I was planning on using the tax refund to pay for gas for commuting to/from work. At the time, I was recovering from a workplace injury, unable to work and receiving only limited worker’s compensation benefits. I had recently moved and, because I was short on funds, I had to ask family members for help to cover necessary expenses. Seventy-nine dollars could have been used to pay for my electric bill, a full gas tank or two, most of a car insurance payment, or a month of dog food.  Eventually, months later, our tax refunds were returned to all of us, but I can only imagine what other people like me had to go through during that time period.

Starting a Lawsuit

I knew what happened to us was wrong, so I agreed to represent the other student loan borrowers like me in a lawsuit against Maximus.  In the case, we asked for money to compensate us for the wrongful withholding of our tax refunds due to Maximus's failure to notify the IRS of our Borrower Defense applications.  It was the first time that I have ever served as a class representative, and I took the role very seriously.  I consulted regularly with my attorneys, reviewed materials they provided to me, provided documents and attended my deposition by videoconference (another new experience).  

Refusing to be Bought Out
At some point in time my attorneys let me know that Maximus had offered to settle the entire case by paying a substantial amount of money to me, but providing no money to the other student loan borrowers.  When I realized that if I accepted the money it would mean that I would be abandoning the other borrowers I was representing, I immediately told my counsel to reject the offer.  It just wasn't right. No matter how much Maximus was willing to pay me, it would not be fair to buy me out at the expense of everyone else who would then get nothing.

Winning the Case
I was proud, then, to be able to attend the court hearing in Allentown, PA, last February to support a settlement with Maximus that provided a fair recovery for all of the student loan borrowers I was representing.  When the case started, I was single.  By the time of the settlement, I had gotten married, given birth to my first child and was 8 months pregnant with my second child.  I unfortunately cannot join you at the Impact Fund Class Action Hall of Fame ceremony this year because I just gave birth to my third child!  But I appreciate being recognized and want to thank you for honoring my efforts in this case.  

The Bodor family with Santa Claus.