Why We Cannot Disclose Settlement Details

Many clients have asked an important and understandable question: why are we unable to share the details of a settlement?

The answer lies in the nature of the agreements made with lenders. When a lender voluntarily agrees to settle a case with one of our clients, they nearly always require a nondisclosure agreement (NDA) as a condition of that settlement. This is not unusual, and it serves a very specific purpose.

Minimizing Risk

Lenders want to avoid setting a public precedent. If word gets out that suing a specific lender can lead to loan forgiveness or reimbursement for legal fees, more consumers may file similar claims. As a result, lenders often try to settle quietly to limit exposure and discourage a wave of legal challenges.

Understandably, lenders wish to minimize that risk. As a result, they insist on confidentiality regarding both the existence and the terms of any settlement.

In our experience, the concern of lenders is not unfounded. If word were to spread that certain outcomes could be achieved through litigation, it could lead to a significant increase in claims.

This is why we are permitted to state that a satisfactory settlement result has occurred. However, we are not allowed to identify the lender involved or discuss the specific terms.

These confidentiality provisions are a standard part of settlement negotiations. Additionally, they are often the only way to resolve a matter without going through the full arbitration process.

While we understand that this may be frustrating or raise questions, please know that we remain committed to protecting our clients’ interests. Confidentiality is simply one of the trade-offs required to reach a resolution outside of the courtroom.

If you have questions or need legal assistance, reach out to our team today.