AG Ferguson files suit against Sallie Mae offshoot Navient Corp., announces scholar Loan Bill of Rights legislation

AG Ferguson files suit against Sallie Mae offshoot Navient Corp., announces scholar Loan Bill of Rights legislation

Lawsuit alleges numerous student that is deceptive lending, servicing and commercial collection agency techniques

OLYMPIA — Attorney General Bob Ferguson today filed a lawsuit against education loan servicer Navient Corporation, an offshoot of education-finance giant Sallie Mae.

In addition, Ferguson additionally announced their agency-request education loan Bill of Rights legislation, introduced this session, to produce more resources for students and establish requirements for education loan servicers like Navient.

“Enormous student-loan financial obligation is a problem for several Washingtonians, ” Ferguson stated. “i am going to hold businesses accountable once they treat borrowers unfairly. ”

The lawsuit, filed today in King County Superior Court, accuses Navient, the nation’s biggest student-loan servicer, of lots of unjust and misleading methods. Those techniques included improperly steering economically troubled pupils toward short-term forbearances, doing aggressive and collection that is misleading and much more.

The lawsuit may possibly influence lots and lots of Washingtonians, including anybody who received personal student education loans from Sallie Mae ahead of 2009 and whoever has their loan serviced by Navient and contains skilled the so-called conduct.

Today’s lawsuit could be the culmination of a multi-year research by Washington, Illinois plus the federal customer Financial Protection Bureau, involving depositions and interviews of Navient professionals as well as the report about tens of thousands of pages of business papers. Continue reading