WASHINGTON (AP) — Federal regulators have sued Navient, accusing the biggest U.S. student loan company of making it harder for borrowers to repay loans by giving them bad information, processing payments incorrectly and failing to act on complaints.
The Consumer Financial Protection Bureau filed the federal lawsuit against Navient Corp. and two subsidiaries on Wednesday, seeking restitution for affected borrowers and money penalties. The agency said the company also cheated struggling borrowers out of their rights to lower their payments “through shortcuts and deception.”
Navient disputed the allegations, calling the suit a politically motivated “midnight action” two days before the Trump administration takes office.
“We will vigorously defend against these false allegations,” the company said in a statement.
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