When debt piles up, many people in Durham may struggle with how they are going to pay it and which loans should get paid off first. Student loans are a major source of debt for many people in North Carolina and across the country. While loans for education are given by both federal and private lenders, collection duties are often contracted out to third-parties.
One such loan servicing company, Navient, has been sued by the Consumer Financial Protection Bureau. Navient has denied that it has committed any wrongdoing and claims the lawsuit was a political move. However, this is not the first time that Navient has found itself in legal trouble. The company is an offshoot of Sallie Mae, and services the loans of more than 12 million people. Two states, Washington and Illinois have also filed suits against Navient alleging that the company misled and cheated borrowers.
The company is accused of a number of misdeeds. For example, the CFPB complaint alleges that employees were encouraged to steer customers away from repayment plans that would have lowered their costs. Other accusations include making important information hard to borrowers to find, errors in processing loan payments and damaging the credit of disabled veterans. If successful, the lawsuits could result in damages in the billions of dollars.
People who are struggling with debt may be surprised to learn that they have many options, including bankruptcy. Those who are feeling overwhelmed by their outstanding balances may wish to consult with an experienced attorney.
Source: Fox News, “US’ largest student loan company, Navient, cheated millions, suite alleges,” Jan. 19, 2017