Navient seeks partial dismissal of lawsuit over loan forbearance practices


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, theborrower 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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