The companies erroneously informed borrowers about the process of releasing co-signers, how much they owed on delinquent loans, and whether they could file for bankruptcy. The complaint against Navient details numerous instances where the company misapplied loan payments and provided false and incorrect information to consumers. In the course of the litigation, a judge in King County, Washington, ruled that Navient had violated the Consumer Protection Act. The lawsuit cites several other violations, including knowingly violating the TCPA. They were also accused of repeatedly auto-dialing third parties without their consent. The company used automated dialers to attempt to collect a debt from consumers who did not give consent. In a recent settlement, Navient, which was formerly known as Sallie Mae, agreed to pay $2.5 million to settle claims that it violated federal law. Violations of the Telephone Consumer Protection Act However, the plaintiffs’ lawsuit does not cover loans made after the eligibility period, which is 2002 to 2010. The settlement also includes $145 million to participating states. The Navient settlement also addresses consumer bureau charges that the company inflated borrowers’ bills and steered federal loan borrowers into costly long-term forbearance. As a result, the borrowers accumulated more debt and interest payments than they were capable of repaying. The plaintiffs allege that Navient discouraged borrowers from enrolling in income-driven repayment plans and put them into loan forbearance programs, which were more expensive and prevented them from paying down their principal. The plaintiffs’ lawsuit claims that Navient steered students into unaffordable, subprime private loans. It also violated California’s Unfair Competition Law. Moreover, Navient misled borrowers about the benefits of income-driven repayment plans. The lawsuit charges that Navient acted illegally by deceiving borrowers to enter into forbearance programs, which resulted in borrowers’ debt increasing substantially.

The California attorney general filed a lawsuit against Navient in June 2018. Navient’s predatory subprime private loans 4 Class-action lawsuits against Navient.3 Misrepresentations about loan forgiveness programs.2 Violations of the Telephone Consumer Protection Act.1 Navient’s predatory subprime private loans.The project compiled a list of the dozens of schools that are involved in the settlement and that the Education Department has determined engaged in misconduct. 'This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of their borrower defense claims after being cheated by their schools and ignored or even rejected by their government,' said Eileen Connor, director of the Project on Predatory Student Lending at Harvard Law School. Secretary of Education Miguel Cardona replaced former Trump appointee Betsy DeVos. The suit name was later changed from Sweet v. The plaintiffs brought their lawsuit against the Trump administration in 2019, representing around 264,000 class members who said their applications for loan cancellation were being ignored by the Education Department. More from Personal Finance: 100 million adults have health-care debt Millions of tax returns remain unprocessed Student loan forgiveness a working class issue, Schumer says

Class actio. lawsuit against navient