On Wednesday, January 18, 2017 the Consumer Financial Protection Bureau (“CFPB” for short) announced it will file suit against Navient, a private student loan servicer. (See Washington Post article here).
The allegations raised by the CFPB include claims of misallocated loan payments, repayment plan errors, preventing lower payments, violating co-signer release requirements, and providing false information to credit reporting agencies.
In addition to the CFPB litigation, the states of Illinois and Washington have filed suit against Sallie Mae, Navient, and their subsidiaries for similar actions as well as for originating loans that were designed to fail.
This kind of behavior is not new from lenders. Whether it be student loans, mortgage loans, or any other kind of loan, lenders and servicers do not always handle accounts properly. Money is lost or misallocated, or agreements are violated by the lenders themselves.
The attorneys at Stratton Stepp have represented hundreds of borrowers in disputes with their lenders. We understand the system, can help educate you, and can help devise a plan of action that best suits your needs.
Contact us today and schedule a free 30 minute consultation to discuss your matter.