On January 18th 2017, the Consumer Financial Protection Bureau (CFPB) filed a substantial lawsuit against the Nation’s largest student loan services “Navient.” This proposed consumer filed class-action claims Navient premeditated many obstacles to prevent student loan borrowers from repaying their loans.
What are the allegations?
Allegedly, Navient illegally cheated borrowers from certain rights they have in repaying their student loans. These deceptive shortcuts has caused too many borrowers to pay more for their loans. Considering the proximity of the filed class-action and Donald Trump’s inauguration, Navient feels at an disadvantage.
How does this relate to my student loans?
Generally, this doesn’t change anything. Navient is denying the allegations that CFPB is charging. As stated “The allegations of the Consumer Financial Protection Bureau are unfounded, and the timing of the actions filed on the eve of new administration reflects political motivations.”
Navient proceeds to believe that the lawsuit improperly searches to impose penalties on Navient base on new servicing standards. The regulated standards asserted by Navient are inconsistent with the Department of Education regulations.
What is a student loan services?
Student Loan servicers are both the customer service side as well as repayment support during the life of a loan. Student loan servicers act as the middle man between a borrower and the lender. Student loan servicers process monthly student loan payments in addition to answering borrower questions. Loan servicers also work with you on student loan repayment plans and student loan consolidation.
It is common for your lender to transfer private and federal government loans 1 – 3 times while your loan is still in repayment. You may notice that your student loans have been transferred when receiving a notice in the mail stating you have been transferred to another servicer. If this happens don’t be alarmed, the transfer does not reflect on your student loan status, your term will not change.
How do I join this lawsuit?
For the most part, consumers do not need to take any action to join in on this class action. All in all, an individual only has to take action under the circumstances that a lawsuit is settled and the time has arrived to claim your slice of the settlement. After a case has settled, class members covered by the lawsuit and potential prospects eligible for a settlement will be sent a notice via email or regular mail explaining how they can claim their money. Records are usually obtained during settlements that help locate and identify class-members.
Who does this new class action cover?
The proposed class action suit is a Nation-wide target in addition to Florida specific sub-classes. “The Nation-wide Misapplication Class includes all individuals currently residing in the United States that have made at least one intentional or partial pre-payment was incorrectly applied against future interest payments and purported fees, and who are not bound by an arbitration agreement.”
The full complaint can be found HERE