In April 2014, Sallie Mae spun off its loan servicing division and created Navient Solutions, LLC, which is based in Delaware. Navientis the largest student loan servicer in the United States, managing over 12 million student loan borrowers and more than $300 billion in student debt.
While Navient claims that its primary mission is to provide helpful solutions for borrowers, as stated by its president and CEO, it has been a target of numerous lawsuits and allegations of misconduct over the years, including being charged by both the Federal Deposit Insurance Corporation (FDIC) and Consumer Financial Protection Bureau (CFPB) for deceptive and unfair business practices. The FDIC settlement in May 2015, which involved a violation of Section 5 of the Federal Trade Commission Act (FTCA) and violations of the Servicemember’s Civil Relief Act (SCRA), resulted in $6.6 million in penalties, $30 million in restitution to borrowers, and $60 million for remediation for affected servicemembers.
The FDIC has also found Navient guilty of other violations toward servicemembers, which include unfairly conditioning Receipts of Benefits under the SCRA upon requirements not found in the Act, improperly advising servicemembers,and failing to provide completeSCRA relief to servicemembers. The Department of Justice has also taken separate action against Navient regardingSCRA violations.
More recently, the CFPB’s lawsuit against Navient alleges violations of the Fair Debt Collection Act (FDCA) and the Fair Credit Reporting Act (FCRA), including: deterring borrowers from the benefits and protections of income-based repayment (IBR) plans in favor of forbearance; failing to disclose annual deadlines for renewing IBR plans; misreporting information about “thousands” of totally and permanently disabled borrowers (including military servicemembers) to credit reporting agencies; harming servicemembers’ credit scores by falsely reporting their student loans as in default when they had actually been discharged; misrepresenting requirements for borrowers to release co-signers from private student loans; committing widespread processing errors for both federal and private student loan payments; and continuing to make the same processing errors for months after receiving complaints from borrowers.
A simple search for reviews about the company reveals a long history of poor customer service and aggressive collection actions against borrowers.Navientonly recently received accreditation from the Better Business Bureau (BBB) amid the CFPB lawsuit, and consumers have filed nearly 1,900 complaints with BBB in the past three years, over 1,300 of which were for billing/collection problems.
Are you dealing with aggressive and seemingly endless phone calls from Navient? Resolving unlawful debt harassment by aggressive collectors can be a complex process, but we can provide you with the right services to help ease your stress and get your life back in order.