Navient settles $120M with CFPB for alleged misleading borrowers, faces $25M civil penalty and $95M in consumer relief.
Navient, a student loan servicer, has settled with the Consumer Financial Protection Bureau (CFPB) for $120 million over allegations of misleading borrowers about repayment options. While Navient admitted no wrongdoing, the settlement includes $95 million for consumer relief and a $25 million civil penalty, marking the largest fine imposed on a student loan servicer by the CFPB. The company will also reform its practices to better assist borrowers.
September 12, 2024
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