This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has taken action against the nation's largest servicer of both federal and private student loans, alleging that Navient systematically and illegally failed borrowers at every stage of repayment by creating obstacles to repayment, providing bad information, processing payments incorrectly, and failing to act when borrowers complained.
According to the complaint, the company is also said to have "cheated" many borrowers out of their rights to lower repayments, causing them to pay much more than they had to for their loans. The CFPB is seeking to recover significant relief for the borrowers harmed by these alleged servicing failures. The CFPB has named in its suit Navient Corporation and two of its subsidiaries: Navient Solutions, Inc., a division responsible for loan servicing operations, and Pioneer Credit Recovery, Inc., which specializes in the collection of defaulted student loans.