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  1. #1
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    Feds sue student loan servicer Navient

    https://www.consumeraffairs.com/news...nt-011817.html


    The Consumer Financial Protection Bureau (CFPB) is suing Navient, the nation’s largest servicer of both federal and private student loans, saying it has failed borrowers at every stage of the repayment process for years.

    The bureau says that Navient, formerly part of Sallie Mae, created obstacles to repayment by providing bad information, processing payments incorrectly, and failing to act when borrowers complained.

    Through shortcuts and deception, the company also illegally cheated many struggling borrowers out of their rights to lower repayments, which caused them to pay much more than they had to for their loans, CFPB charged.

    “For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their student loans,” said CFPB Director Richard Cordray. “At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today's action seeks to hold them accountable.”

    http://www.latimes.com/business/la-f...118-story.html

    The lawsuit, filed in U.S. District Court in Pennsylvania, says Navient violated the Dodd-Frank reform act, the Fair Credit Reporting Act and the Fair Debt Collections Practices Act. The agency is seeking redress for borrowers harmed by the practices and to prevent any future harm.

    In response, Navient called the bureau’s allegations “unfounded” and questioned the timing of Wednesday’s lawsuit, noting it came just days before the Obama administration is set to leave office.

    “The timing of this lawsuit — midnight action filed on the eve of a new administration — reflects their political motivations,” the company said in a statement posted on its website.

    The filing of the lawsuit comes amid a flurry of new rules and regulations in the waning days of the Obama administration — and as the CFPB is under threat from Republican critics, who have complained that the bureau has too much power and that its attempts to help consumers have restricted access to credit.

    Some Republican senators have even asked President-elect Donald Trump to remove Cordray as director, which if undertaken would probably set up a legal showdown over Trump’s right to do so.
    http://www.consumerfinance.gov/about...age-repayment/

    Fails to correctly apply or allocate borrower payments to their accounts: As soon as a borrower begins to pay back their loans, student loan servicers are supposed to take a borrower’s payment and follow instructions from the borrower about how to apply it across their multiple loans. Navient repeatedly misapplies or misallocates payments — often making the same error multiple times over many months. The company all too often fails to correct its errors unless a consumer discovers the problem and contacts the company.

    Steers struggling borrowers toward paying more than they have to on loans: When borrowers run into trouble repaying their federal student loans, they have a right under federal law to apply for repayment plans that allow for a lower monthly payment. But the Bureau believes that Navient steers many borrowers into forbearance, an option designed to let borrowers take a short break from making payments. But interest continues to add up during forbearance. Certain consumers with subsidized loans end up paying a heavy price because they could have potentially avoided those interest charges. From January 2010 to March 2015, the company added up to $4 billion in interest charges to the principal balances of borrowers who were enrolled in multiple, consecutive forbearances. The Bureau believes that a large portion of these charges could have been avoided had Navient followed the law.


    http://files.consumerfinance.gov/f/d...-complaint.pdf

    Saw this on Reddit and know that some people here need to be aware of this. It could impact a lot of people.

  2. #2

    if i can get out of my 2500ish student loan with them for free i'll be a very happy guy. ^^

    that said... probably not going to happen. but i can dream, heh.

  3. #3
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    Can't say I'm shocked. They took over my loans years ago and it has been a headache. At least they seem to have a stable website for the past year or so. Prior to that, it was a hassle finding the correct month after month. For shits and giggles, I decided to check out their reviews on the BBB a few months ago, and they were horrible. I took them with a grain of salt since, you know, nobody likes the company that takes your money. But maybe they weren't all wild accusations after all.

  4. #4
    I'm more gentle than I look.
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    I pay every month and it's like my loans never go down, lol.

  5. #5
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    I hate Navient they suck. I hope they lose this suit horribly. Big bonus points if my student loans get wiped out.

  6. #6

    Sweaty Dick Punching Enthusiast

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    Quote Originally Posted by zoobernut View Post
    I hate Navient they suck. I hope they lose this suit horribly. Big bonus points if my student loans get wiped out.
    I think that is everyone's hopes but, best case scenario, they only write off the private loans. Federal loans won't go anywhere. The federal government is always gonna get their due.

  7. #7
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    Just remember who's taking over the federal government tomorrow. I wouldn't give your hopes up.

  8. #8
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    Navient may suck but I would bet on nothing happening here. Also, your federal loans will never be wiped out. Private loans will also never get wiped out, they will either be bought by another loan servicing company or Navient will continue to take your money. This will likely result in a large fine and that's it.

  9. #9
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    Quote Originally Posted by Fiye View Post
    Just remember who's taking over the federal government tomorrow. I wouldn't give your hopes up.
    You just gave me an idea. I should see if I could retroactively have it classified as a business loan, then get it wiped out through bankruptcy.

  10. #10
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    Create a business, sell the loan to yourself, default, business goes bankrupt?

  11. #11
    Atheist Douchebag.
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    Quote Originally Posted by Xantavia View Post
    You just gave me an idea. I should see if I could retroactively have it classified as a business loan, then get it wiped out through bankruptcy.
    Nope.

  12. #12

    ive had a couple of overdue payments because the payments would be due on say, the 12th of each month, then suddenly the next month it would be due on the 8th or something and fuck me up when i didn't catch the change.

  13. #13

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    Quote Originally Posted by Psion View Post
    ive had a couple of overdue payments because the payments would be due on say, the 12th of each month, then suddenly the next month it would be due on the 8th or something and fuck me up when i didn't catch the change.
    Autopay

  14. #14
    Atheist Douchebag.
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    Quote Originally Posted by Psion View Post
    ive had a couple of overdue payments because the payments would be due on say, the 12th of each month, then suddenly the next month it would be due on the 8th or something and fuck me up when i didn't catch the change.
    This happens when your payment occurs over a weekend. Your payment date changes to Friday. This is stated in the verbiage of your contract.

  15. #15
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    Quote Originally Posted by Zetanio View Post
    This happens when your payment occurs over a weekend. Your payment date changes to Friday. This is stated in the verbiage of your contract.
    WHY ARE YOU ON THEIR SIDE GOD

    /s

  16. #16
    Atheist Douchebag.
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    Quote Originally Posted by Salodin View Post
    WHY ARE YOU ON THEIR SIDE GOD

    /s
    Someone has to explain this shit.

  17. #17

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    Should I have not paid off my student loans? It seemed prudent at the time.

  18. #18
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    Quote Originally Posted by Roranora View Post
    Should I have not paid off my student loans? It seemed prudent at the time.
    Totes.

  19. #19

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    I'm going on eight years of deferment myself. Strangely enough though I've only acrued about $600 in total interest because I consolidated all my federal loans immediately after graduation. Haven't voluntarily paid anything, though this means I haven't gotten a tax return in five years or so.

  20. #20
    You wouldn't know that though because you've demonstrably never picked up a book nor educated yourself on the matter. Let me guess, overweight housewife?
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    I got one more year left before I get loan forgiveness on mine. Can't. Fucking. Wait. I still pay the minimums though.

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