DebtDoc Bankruptcy News Blog

Sunday, 01 July 2018 20:40

Lawsuit Filed Against Student Loan Servicing Firm Navient

California Attorney General Xavier Becerra filed a lawsuit accusing student loan processor Navient Corp. of harming consumers by failing to properly service the debts. Navient, one of the nation’s largest student loan servicers, services about $300 billion in federal and private student loans for 12 million borrowers, about 1.5 million of whom live in California.

The lawsuit, filed in California Superior Court for the county of San Francisco on June 29, 2018, alleges that the company steered borrowers toward more expensive repayment plans and provided incorrect information to borrowers about their accounts. Also charged in the lawsuit are Navient subsidiaries Pioneer and General Revenue Corp. Becerra’s office said Navient had assigned “thousands” of defaulted California loans to be collected by these firms. The lawsuit charges the subsidiaries with misrepresenting the credit benefits of rehabilitating defaulted loans and providing false information on collection fees for rehabilitation.

A statement from Becerra’s office alleges that the company violated the California’s unfair competition and false advertising laws by not adequately disclosing how borrowers could be considered for income-driven repayment recertification plans that could reduce monthly payment amounts. Navient was also accused of misrepresenting the “present amount due” to borrowers who were delinquent in payments.

“Poor loan servicing is at the core of the problem for students who are in default... By taking Navient to court, we’re sending a very strong message that these practices will not be tolerated.”
California Attorney General Xavier Becerra

 

Are you interested in learning how this amendment could affect your student loan status? Schedule your free initial consultation with Chris Bush today.

Student Loan Lawyer | Chris Bush
We have a new sister website dedicated to Student Loan Debt Resolution. Please visit San Diego Student Loan Lawyer for more information regarding options for management and settlement of your student loan debt.

Read 473 times Last modified on Friday, 01 February 2019 05:41
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

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