The largest U.S. student loan servicer, Navient (NAVI, +1.78%), cheated borrowers out of billions of dollars, often by deceiving them about repayment options and their legal rights, the U.S. consumer financial watchdog said on Wednesday as it announced a lawsuit against the company.
The U.S. Consumer Financial Protection Bureau accused Navient, which was spun off of Sallie Mae in 2014, of “systematically and illegally failing borrowers at every stage of repayment.” Navient gave borrowers bad information, processed payments incorrectly and failed to fix problems after people complained, according to the CFPB.
