The CFPB sued Navient Corporation, alleging it had “failed customers ‘at every stage of repayment'” with respect to their student loan program. In particular, the bureau alleged Navient “failed to apply borrower repayments accurately” and that Navient hurt “disabled military veterans” eligible for “loan forgiveness under a federal program.” Navient allegedly “inaccurately told credit reporting companies that veterans … had defaulted on their loans.” Navient, which was under contract with both the Department of Education and private lenders, called the allegations “false” and said the timing of the suit reflected the CFPB’s “political motivations.” On speculation that the CFPB would be “neutered” by President Trump, Navient stock “rallied to almost $18 from around $13” after the election.

• On January 18, 2017, the CFPB sued Navient Corporation, Navient Solutions, Inc. and Pioneer Credit Recovery, Inc. in the US District Court for the Middle District of Pennsylvania. [CFPB vs. Navient Corporation, Navient Solutions, Inc. and Pioneer Credit Recovery, Inc. , case no. 3:17-cv-00101, filed 01/18/17]

• The CFPB alleged that Navient “failed customers ‘at every stage of repayment'” with respect to their student loans. [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• The CFPB claimed that “Navient failed to apply borrower repayments accurately … and the company did not make clear what its customers needed to do to keep their payments low. Worst of all, though, it accused Navient of hurting disabled military veterans, who can seek loan forgiveness under a federal program. Navient, the lawsuit said, inaccurately told credit reporting companies that veterans taking advantage of this program had defaulted on their loans.” [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• Navient characterized the CFPB’s accusations as “false accusations” [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• Navient acted under contract with the Department of Education and private lenders. [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• In 2014, Navient “paid $60 million to settle an investigation by the Justice Department and the Federal Deposit Insurance Corporation, alleging that the company had been illegally overcharging military families as far back as 2005.” [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• Navient stock “rallied to almost $18 from around $13 on speculation that the bureau would be neutered under President Trump.” [Gretchen Morgensen, “At Student Loan Giant Navient, Troubled Past Was Prologue”, New York Times, 01/21/17]

• In a separate suit, Illinois Attorney General Lisa Madigan “sued Navient and its subsidiaries for ‘widespread abuses across all aspects of its business,'” [Jesse Hamilton, “Navient sued over student loan operations”, Bloomberg News, accessed 2/13/07]

• Navient claimed the lawsuit was a “midnight action filed on the eve of a new administration” that, in their view, “reflect[ed] [the CFPB’s] political motivations.” [Andrew Khouri, Samantha Masunaga, “Feds sue nation’s largest student loan servicer, accusing it of cheating borrowers”, Los Angeles Times, 01/18/17]