Navient Corp., the largest servicer of student loans in the U.S., was sued by a U.S. regulator over allegations that the company “systematically” cheated borrowers, Bloomberg News reported yesterday. Navient, formerly part of Sallie Mae, failed to properly service private and federal loans, provided incorrect information to borrowers, improperly processed payments and didn’t respond to complaints, the Consumer Financial Protection Bureau said in a statement Wednesday announcing the lawsuit. “For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their student loans,” CFPB Director Richard Cordray said in the statement. Navient said in a statement that the allegations are “unfounded” and that it rejected an ultimatum from the consumer agency to settle before the presidential inauguration of Donald Trump. Navient said the suit’s timing “reflects their political motivations.”
