Consumers have filed thousands of complaints with the CFPB against Navient and its predecessor company, Sallie Mae. A Huffington Post analysis earlier this year found that no company had paid out more money in refunds to aggrieved borrowers with private student loans than Navient.
Federal and state regulators have increased their surveillance of the student loan sector as outstanding debts reach $1.3 trillion and borrowers continue to fall behind on their payments despite the improving economy and generous federal plans that allow borrowers to make payments based on their earnings. Officials at the CFPB have repeatedly said they see parallels between how student loan companies process borrowers' monthly payments and counsel them on their repayment options and the way mortgage companies treated borrowers during the height of the recent housing crisis. Millions of Americans lost their homes as a result of mortgage companies' failures.
Navient has previously denied allegations that it acted improperly. In a sign of its confidence, Navient has increased how much it pays Timothy Hynes, the company's chief risk and compliance officer, despite its pending regulatory woes.
Wall Street is meting out punishment as the Consumer Financial Protection Bureau readies a possible lawsuit against Navient, a major Department of Education student loan contractor, for allegedly cheating borrowers. The consumer bureau sent Navient a letter on Aug. 19 telling its executives that the agency's enforcement staff had found enough evidence indicating that the company violated consumer protection laws, according to an Aug. 24 filing with the Securities and Exchange Commission.
The CFPB has been investigating the company for nearly two years, and in its August letter to Navient, the agency said its senior officials are now considering whether to sue the company in court. A group of state attorneys general led by Washington and Illinois has been probing the company for more than a year, amassing evidence that Navient allegedly harmed borrowers with its practices. State banking regulators also have launched an investigation.
http://www.huffingtonpost.com/entry/...b0aec9f355dbe5
STAY WOKE! These lenders are your adversaries, not your friends. Scrutinize and verify before and after signing.



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