Citing lack of facts from the bureau, defendants call for judgment out of court on two counts in the case.
1/18/2019 14:00
Student loan servicer Navient has filed for a motion for partial summary judgment in two of 11 counts in the Consumer Financial Protection Bureau v. Navient Corporation, et. al. lawsuit initiated in 2017.
The complaint , filed Jan. 18, 2017 in the U.S. District Court for the Middle District of Pennsylvania, alleges “unlawful acts and practices in connection with defendants’ servicing and collection of [federal and private] student loans.” The CFPB is seeking permanent injunctive relief, restitution, refunds, damages, civil money penalties, and other relief for the alleged violations, ACA International previously reported.
“Two years after filing suit—and more than five years after launching its investigation—the CFPB has not only failed to show that ‘hundreds of thousands’ of borrowers were harmed, it has not identified a single borrower who supports its allegations of ‘steering,’” Navient states in the motion for partial summary judgment. “The CFPB ultimately named only 15 people who experienced the alleged misconduct. All but one have been deposed, and all testified that Navient repeatedly advised them about income-driven repayment.”
According to Navient, the CFPB has named only 15 consumers who experienced alleged misconduct.
“Student debt is indeed a challenge for many Americans, and Navient is dedicated to supporting borrowers, continuous enhancements, and working with policymakers to simplify and improve the federal program. The CFPB cannot meet its burden to show a genuine dispute of material fact with respect to whether Navient informed borrowers about IDR. At a minimum, a ruling as to Navient’s conduct toward the identified borrowers would serve to define the relevant issues for trial.”
Navient is asking for a judgment on the two counts without a trial.
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CFPB Files Lawsuit Against Navient; Company Responds to “Politically Driven Action”