Consumer Financial Protection Bureau sues largest student loan server in US
(WISH) – The Consumer Financial Protection Bureau has sued the country’s largest student loan server in the United States. The company has offices in Indianapolis, Fishers and Muncie.
Navient Corporation, which is a Delaware-based company, is being sued because it failed to hold its end of the bargaining and neglected to inform borrowers about ways to minimize their repayments, according to the lawsuit.
As a result, hundreds of thousands of students across the nation ended up with bad credit because Navient allegedly steered them towards a higher repayment plan.
Another lawsuit was filed against the student loan server in Illinois.
Navient responded with statements on it website, calling the lawsuits politically driven days out from the inauguration of Donald Trump.
“The allegations of the Consumer Financial Protection Bureau are unfounded, and the timing of this lawsuit-midnight action filed on the eve of a new administration-reflects their political motivations. Navient welcomes clear and well-designed guidelines that all parties can follow, and we had hoped our extensive engagement with the regulators would achieve this objective,” Navient stated on its website. “Instead, the suit improperly seeks to impose penalties on Navient based on new servicing standards applied retroactively and applied only against one servicer. The regulator-asserted standards are inconsistent with Department of Education regulations, and will harm student loan borrowers, including through higher defaults.”
There are also offices in Delaware, District Of Columbia, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Texas, and Virginia.