Navient seeks partial dismissal of lawsuit over loan forbearance practices

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Wilmington-based student loan servicing firm Navient is seeking a partial summary judgment in a case involving its practices with  borrowers  struggling to make payments..

Gaining the judgment would dismiss some but not all charges in an upcoming case with the Consumer Protection Financial Bureau.

The CFPB  last year sued the company over its forbearance practices that come when a borrower cannot meet the payment  terms of the loan. .

Navient has strongly denied the allegations in the lawsuit, but has been unsuccessful in efforts to seek a full dismissal of the case that will be heard in nearby Pennsylvania.

Under forbearance, the borrower and company work together on payment  options. The CFPB has alleged that Navient did not  fully  communicate with borrowers on options, a practice that led to higher price options being used.

Navient claimed the  CFPB has not identified the actions against any borrower  that supports its allegation.

At the time of its 2017 filing,  the  suit came as surprise.

The Trump Administration had been expected to  rein in the CFPB, which has broad powers in regulating financial services companies and has long targeted the practices of Navient. The publicly traded company was  spun off several years ago from Newark-based Sallie Mae.

 The president put current acting chief of staff, Mick Mulvaney in charge of the agency for a time in what some critics  saw as a dismantling  effort.

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