The settlement introduced Thursday comes nearly eight years after the Shopper Monetary Safety Bureau (CFPB) sued Navient, previously a part of Sallie Mae.
“Right this moment we’re closing the ebook on Navient, one of many worst offenders within the pupil mortgage servicing business, and an organization that has harmed thousands and thousands of debtors throughout the nation,” CFPB Director Rohit Chopra advised reporters Thursday morning.
The CFPB accused the loan-servicing big of harming pupil mortgage debtors by deceptive them about income-driven reimbursement plans, mishandling fee processing and tarnishing the credit score of disabled debtors whose loans had been discharged, amongst different allegations.
On the time, Navient was the largest mortgage servicer for the U.S. Division of Schooling. However in 2021, the corporate introduced it could not service federal loans.
Underneath the phrases of the settlement, Navient shall be barred from ever once more competing to service federal pupil loans.
Along with a $20 million penalty, Navient shall be required to pay $100 million in redress, to be distributed amongst tons of of hundreds of debtors.
The Hill’s Taylor Giorno has more here.