Debt has become a concern for many across California. In particular, for those just starting out, student loan debt has become an issue. Many young adults are graduating from college and finding it difficult to find a job with a salary high enough so that student loan repayment is not burdensome. On top of such overwhelming debt, questions have been raised in connection with one of the country’s largest loan servicing agencies and how it is processing payments. This issue has become a consumer protection concern for many.
Recently, two states claimed that Navient, which handles loans for over 12 million individuals, has been creating a sea of errors that have adversely affected its borrowers. As borrowers have been doing their part and making timely payments, these payments have been applied to the wrong account or incorrectly applied to the customer’s account. Then, when the borrower contacts Navient to inform them of the error, corrections are made only after the customer discovers that an error has been made and has not yet been corrected.
In their claim against Navient, these states allege that the company regularly misapplies payments and fails to correct the problem. Furthermore, in its communication with borrowers regarding deadlines and other necessary information on the programs available, the company does not present information in a manner in which the borrower can understand what needs to be done. Finally, the suit claims that Navient has made notifications to credit reporting agencies, representing some debts as being defaulted upon rather than discharged in numerous cases.
Student load debt is a growing problem across California. Many young adults are struggling to make their dreams come true as a result. Added to the debt burden now is concern regarding whether the loan is being properly serviced. If one believes that his or her loan is not being properly serviced, he or she may want to discuss the possibility of consumer protection concerns with an experienced attorney.
Source: insidehighered.com, “Consumer protection bureau, two states sue student loan servicer Navient“, Ashley A. Smith, Jan. 19, 2017