CFPB sues nation's largest student loan company

[pipeguy]

Press Release CFPB sues nation's largest student loan company Navient for failing borrowers at every stage of repayment  

Today, the Consumer Financial Protection Bureau (CFPB) is suing the nation's largest servicer of both federal and private student loans for systematically and illegally failing borrowers at every stage of repayment. For years, Navient, formerly part of Sallie Mae, created obstacles to repayment by providing bad information, processing payments incorrectly, and failing to act when borrowers complained. Through shortcuts and deception, the company also illegally cheated many struggling borrowers out of their rights to lower payments, which caused them to pay much more than they had to for their loans. The Bureau seeks to recover significant relief for borrowers harmed by these illegal servicing failures.

http://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-nations-largest-student-loan-company-navi...

[seruby]

I just had an issue with them not allocating my payment correctly last month.   Their website doesn't allow to distribute payments on cosolidation loans, so I called in to make a payment and have it allocated so 1 of the loans was paid off completely, while meeting a little more than minimum for the other.   The rep on the phone even asked, "So this amount is to pay off the balance of this loan?" to which I replied, "correct, and the remainder goes to the other other loan"  When I looked online 2 days later after the payments posted, it didn't posted like I asked at all.  So I called back  (I may have called the Advocate number this time) and explained that I called in to make a payment and specified where each amount was supposed to be applied, and it was not applied how I requested.  The adjustments were made right then on the phone and the balances updated as expected.  But I only noticed it because I made sure to check online to see if it was applied correctly - many people probably would not have noticed until the statement came in.

[gdale6]

Yup,   

Student Loan Collector Navient Sued for Overcharging Borrowers

http://www.nbcnews.com/business/business-news/student-loan-collector-navient-sued-overcharging-borro...

Beginning to see why the Barclays Sallie Mae card was nerfed, they knew this was coming.