Navient Lawsuit 2019
This Navient lawsuit seeks to bring an end to these unfair practices and prevent future violations. This class action lawsuit also aims to protect customers with qualifying public service jobs. It proposes a nationwide “injunctive” class to prevent the defendant from continuing these practices. As such, it may help many people. Read on to learn more about the lawsuit and how to proceed. Also, keep an eye out for settlement proposals that Navient might make.
Class action lawsuits against Navient
A settlement has been reached between Navient and state attorneys general, ending a series of related legal actions. In the settlement, Navient will repay approximately $1 billion in federal student loans and erase up to $7 billion in private student loan debt. As a result, nearly 400,000 borrowers will receive debt relief. These student loan borrowers were scammed by Navient, which was founded by former students and investors in 2006.
The U.S. Department of Education contracts with Navient, but consumer advocates and the attorneys general of five states believe that the department could do more to protect the interests of borrowers. Those concerns echo those of the Consumer Financial Protection Bureau. While Navient has filed defenses to these lawsuits, they continue to face scrutiny. Here are some of the key points to keep in mind when evaluating a Navient lawsuit.
The lawsuits against Navient allege that the company violated several laws, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Fair Debt Collection Practices Act. In January 2017, the Consumer Financial Protection Bureau announced a lawsuit against Navient. The bureau claims that Navient and Pioneer provided false information to students to damage their credit scores. The lawsuit seeks to recompense students, make changes in the student loan process, and enforce federal consumer protection laws.
Settlement proposal
A recent settlement proposal from Navient will end the linked legal actions against the company. The proposed settlement includes nearly $1 billion in consumer relief, $260 restitution payment, and the cancellation of nearly $66,000 in student loans issued by Navient. The settlement covers all generations of borrowers, from high school students who enrolled directly after graduation to mid-career students who dropped out of a for-profit school in the early 2000s.
Under the terms of the settlement, Navient will cancel approximately 350,000 consumer debts and make restitution payments. These payments will total about $95 million. Each consumer will receive $260, and Illinois will receive $5 million in restitution. In addition, Navient will pay more than $133 million in damages to borrowers, including $7.2 million in Illinois state restitution. The settlement does not cover class actions or the plaintiffs’ attorneys’ fees.
The proposed settlement for the Navient lawsuit includes several reforms, including a mandatory notice that Navient notify its borrowers of any changes to the PSLF. The company must also make certain adjustments to its repayment plans so that they are fair and reasonable for all borrowers. As a result, the settlement would have a significant impact on the lives of many people. If the settlement does not result in a final settlement, Navient will face legal action.
Class action lawsuits filed against Navient
The Navient class action lawsuits allege that the company improperly served borrowers with subprime loans and “steered” them away from income-driven repayment plans. Navient denies any wrongdoing and has vowed to fight these baseless allegations. The company filed a Motion for Summary Judgment and will be deposing witnesses in the lawsuits. Here’s what you should know.
State lawsuits against Navient include claims from attorneys general in various states. The lawsuits were filed in Illinois, Massachusetts, Washington, and Pennsylvania in 2017 and 2018. The American Federation of Teachers (AFT), which is the second-largest teachers union in the United States, also supported the Navient case. In addition to the Pennsylvania suit, dozens of other states joined the case. Navient settled with these states because of the widespread abuse of its student loan business.
The court denied Navient’s motion to dismiss the case, saying that the class-action claims are irrelevant because the specific terms of each loan would be disregarded. Still, Judge Wigenton found that the specific claims of misapplied payments are sufficient to state fraud and violation of consumer protection laws. In the meantime, Navient is appealing the decision. The decision will likely have a profound effect on the industry.