If this is the last act of Richard Cordray’s Consumer Financial Protection Bureau, it’s a doozy. The bureau announced Wednesday it was suing Navient, formerly Sallie Mae, for allegedly deceiving student loan borrowers about their rights during repaying.
Navient services 12 million loans, including 6 million under contract with the Department of Education – a total of $300 billion worth of loans. The CFPB says Navient deceptively managed loan servicing, and specifically alleges that the firm “cheated” struggling borrowers out of their rights to lower payment plans. The firm “systematically and illegally fail(ed) borrowers at every stage of repayment,” the CFPB alleged