The Consumer Financial Protection Bureau is suing Navient, the country's largest student loan servicer, for illegal repayment practices.
The CFPB charges that Navient, formerly part of Sallie Mae, provided bad information to borrowers, processed payments incorrectly and failed to act when borrowers complained. Moreover, it "systematically made it harder for borrowers to obtain the important right to pay according to what they can afford," according to the CFPB press release, referring to income-driven prepayment plans for struggling borrowers.
"At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs," said CFPB Director Richard Cordray, in a statement. "Today's action seems to hold them accountable."
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Bernice Napach
Bernice Napach is a senior writer at ThinkAdvisor covering financial markets and asset managers, robo-advisors, college planning and retirement issues. She has worked at Yahoo Finance, Bloomberg TV, CNBC, Reuters, Investor's Business Daily and The Bond Buyer and has written articles for The New York Times, TheStreet.com, The Star-Ledger, The Record, Variety and Worth magazine. Bernice has a Bachelor of Science in Social Welfare from SUNY at Stony Brook.
