The parent company of student loan debt management service SoFi, Navient is a U.S. corporation based in Wilmington, Delaware. While this company collects and services student loans, it is not the most trustworthy company out there. The following are the top reasons to avoid Navient. Read on to find out more. * What is Navient? What do their services entail? Which ones are the best? Which ones should you avoid?
* CFPB lawsuit: In 2017, the Consumer Financial Protection Bureau filed a suit against Navient on behalf of borrowers, alleging that the company misled borrowers and penalized them for paying for education in advance. The lawsuit ruled that Navient violated the Consumer Protection Act. While Navient denies any wrongdoing, it may be better to avoid Navient altogether. There are many reasons to avoid Navient. This article will examine some of the most common problems.
* CFPB claims: In April 2014, the federal consumer bureau sued Navient over alleged fraudulent loan servicing.
In addition to this, the lawsuits also call for significant changes in the student loan program. These changes would make Navient’s business more transparent. While the CFPB is asking for compensation, Navient maintains that its actions were unjust. This has left borrowers unsure about their repayment options. But it seems the current situation isn’t good for the company.
CFPB claims: The CFPB is asking Navient to compensate borrowers for their alleged mistakes and abuses. However, Navient says the CFPB claims are unfound and its suits are retroactive. It is also trying to limit the scope of its case by saying that it was the only company willing to give borrowers lower interest rates. Further, this lawsuit doesn’t appear to include a student loan forgiveness program, so it is unlikely that borrowers will receive any compensation.
The CFPB has ruled that Navient violated the law and did not adequately allocate the payments to the right accounts. CFPB believes that the lawsuits are a result of the new servicing standards and are not related to any alleged violations of the law. Moreover, the CFPB also found that the company’s actions do not impose any financial penalties. This was done with the intention of preventing further legal action.
The US Department of Education has shifted student loan debt.
The company’s largest portfolio of federal loans is $200 billion. It also services a large number of private student loans, including the Sallie Mae federal loans. In addition, Navient acts as a liaison between borrowers and lenders and certifies loan forgiveness. It has also received multiple consumer complaints regarding the quality of their services. This is why it is crucial to avoid dealing with a loan service that has been in the news a lot in the past.
In the United States, Navient is a large and powerful company. Its subsidiary, Sallie Mae, handles 22% of all direct loans made by the U.S. Dept. of Education. Its portfolio includes 7 million borrowers, including more than $200 billion in Sallie Mae loans. It also services a large portfolio of private student loans. The company acts as a middleman between lenders and borrowers, and certifies a borrower’s loan.
CFPB’s investigation into Navient was launched in 2017.
While the company agreed to settle the lawsuit, Navient’s new servicing standards could mean that the company would need to pay millions of dollars in compensation to borrowers who were harmed by the company’s practices. CFPB also wants to change the law to protect consumers. This is why they are suing the company. But this is only the beginning. The next steps are based on a more realistic and comprehensive assessment of the company’s business model.
There are also consumer complaints about Navient’s practices. According to the Federal Trade Commission, nearly 38% of student loan servicers received consumer complaints about Navient. These include deceptive customer service representatives, payment problems, and the lack of adequate notice. The complaint lists some of the most common issues that consumers have with Navient and other companies. These companies can be found online by searching for “Navient” in the search bar on the CFPB’s website.
Navient has been investigated by various state Attorneys General. They settled with several states, including California, New York, Texas, Illinois, and Maryland. They agreed to make major improvements in their debt collection and servicing practices. After the settlement, they still face lawsuits from the federal government. The companies continue to deny wrongdoing. Although the company has agreed to pay the plaintiffs, the attorney general’s office is still investigating the firm’s claims.