Wells Fargo Appeal Over Discharged Student Loan Shut Down

The Fifth Circuit won’t revisit its decision rejecting Wells Fargo & Co.'s effort to arbitrate a dispute stemming from a student loan discharged under a consumer bankruptcy plan.

The full U.S. Court of Appeals for the Fifth Circuit Dec. 16 declined to rehear a challenge brought by Wells Fargo’s Educational Financial Service. The bank sought to overturn an October 2018 Texas bankruptcy court ruling related to the discharge received by student borrower Stephanie Henry, who completed a consumer bankruptcy plan last year.

The Bankruptcy Code’s goal of “centralized resolution of purely bankruptcy issues” overrides the Federal Arbitration Act’s directive to ...