Navient Student Loan Class-Action Lawsuit Update
The Consumer Financial Protection Bureau is suing Navient in a class-action lawsuit. As one of the largest student loan servicers in the country, it has more than 12 million customers. This class-action suit is among the most-watched in the country, and it’s too early to know whether the borrowers will win compensation. However, the numbers are promising. In the meantime, borrowers can expect updates on the lawsuit’s progress.
In the lawsuit, borrowers allege Navient failed to disclose the annual deadline for renewal of their plans and misrepresented the consequences of not renewing.
The settlement, signed by the companies, releases claims for aggregate damages but retains the right to pursue individual damages. Additionally, the plaintiffs claim Navient did not notify borrowers that their affordable monthly payment amount had expired. As a result, hundreds of thousands of borrowers saw their monthly payments skyrocket, while others faced other financial harm. Despite the settlement, Navient has denied all of these allegations and has called the litigation politically motivated.
The plaintiffs’ initial lawsuit against Navient claims that the company wrongfully steered its members away from debt relief. The plaintiff claims that Navient hid the fact that its members had fully paid off their federal student loans after they entered into a consolidation agreement with Commerce Bank. This settlement is intended to cover all people in the United States who were affected by the defendants. The settlement includes a significant injunction governing student loan servicing.
In addition to the recent class action, the Consumer Financial Protection Bureau has filed similar lawsuits against Navient.
This settlement allows Navient to pay $95 million in restitution to consumers, which equates to $260 per person. As a result of this settlement, borrowers can get their loans canceled. If you have a Navient student loan, you may be concerned. If you are paying a loan with Navient, you should seek legal counsel.
In addition to the state claims, the Navient settlement also includes a settlement of private student loans. The lawsuit was filed because of problems with Navient’s practices in servicing and collecting federal student loans. While the lawsuit does not involve class actions, it includes a significant restitution payout for borrowers who owe money to the company. This settlement also provides for the payment of borrowers who owed more than $75,000 but were denied the right to reclaim their funds.
According to the Attorney General’s Office, Navient owes millions of dollars to borrowers who received private loans through the company.
The company denies the allegations and will fight the claims. The suit is a class action that involves all individuals in the United States who were harmed by the defendants. While the class action was resolved by the plaintiff, the lawsuit continues to be fought. If you are a student, you can get help through the attorney general’s student loan initiative.
The lawsuit was filed by a student loan borrower in September 2017 claiming that Navient misrepresented the loans as in default when they had already fully paid off the loans. The borrower also argued that the company did not make the repayments required by law. The case covers all individuals in the United States who were victimized by the defendants. The settlement is limited to six million borrowers in total, but it still covers millions of borrowers who were harmed by the fraudulent practices.
The settlement in the Navient lawsuit has settled the allegations that the company engaged in unfair business practices.
The plaintiff will be required to pay $95 million in restitution to consumers. This means that a single Navient consumer will receive $260. The company has agreed to cancel $1.7 billion in private loans to borrowers across the United States. In this case, the borrowers were paying high-interest rates and were unaware that the loan companies did not make repayments on their loans.
In addition to the financial relief, the settlement also settles claims for injunctive relief and aggregate damages. The settlement does not provide monetary benefits to borrowers. It will only require Navient to implement new practices to inform consumers about their eligibility. It will also streamline the process for borrowers to get the relief they need. If the lawsuit succeeds, it may be worth it. If it fails, the plaintiff will receive a substantial restitution payment.