Consumer agency sues Navient over student loan repayments

Markets Associated Press

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.

Continue Reading Below

The Consumer Financial Protection Bureau filed the federal lawsuit against Navient 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.

Republicans have opposed the CFPB, which was created by the financial overhaul law enacted following the 2008 crisis. Some Republican lawmakers want President-elect Donald Trump to fire the agency's director.