AG Ferguson files suit against Sallie Mae offshoot Navient Corp., announces scholar Loan Bill of Rights legislation

AG Ferguson files suit against Sallie Mae offshoot Navient Corp., announces scholar Loan Bill of Rights legislation

Lawsuit alleges numerous misleading education loan lending, servicing and commercial collection agency methods

OLYMPIA — Attorney General Bob Ferguson today filed case against education loan servicer Navient Corporation, an offshoot of education-finance giant Sallie Mae.

In addition, Ferguson additionally announced their agency-request education loan Bill of Rights legislation, introduced this session, to deliver more resources for pupils and establish criteria for education loan servicers like Navient.

“Enormous student-loan financial obligation is a concern for most Washingtonians, ” Ferguson said. “i am going to hold organizations accountable if they treat borrowers unfairly. ”

The lawsuit, filed today in King County Superior Court, accuses Navient, the nation’s student-loan servicer that is largest, of a number of unjust and misleading methods. Those techniques included improperly steering economically troubled pupils toward short-term forbearances, participating in aggressive and deceptive collection techniques and much more.

The lawsuit may possibly influence large number of Washingtonians, including whoever received personal student education loans from Sallie Mae ahead of 2009 and those who have their loan serviced by Navient and contains skilled the conduct that is alleged.

Today’s lawsuit could be the culmination of the multi-year research by Washington, Illinois together with federal customer Financial Protection Bureau, involving depositions and interviews of Navient professionals plus the report on tens and thousands of pages of business papers. The lawsuit is filed in conjuncti on with comparable matches by the Illinois Attorney General’s workplace while the CFPB.

Allegations against Navient

While operating as Sallie Mae, Navient made subprime, predatory loans to pupils attending for-profit universities with graduation prices less than 50 %, despite clear objectives that an percentage that is extremely high of wouldn’t be in a position to repay them. Continue reading “AG Ferguson files suit against Sallie Mae offshoot Navient Corp., announces scholar Loan Bill of Rights legislation”