Pennsylvania attorney general sues student loan company | iNFOnews | Thompson-Okanagan's News Source

Current Conditions

Mainly Clear
0.6°C

Pennsylvania attorney general sues student loan company

October 05, 2017 - 7:25 AM

HARRISBURG, Pa. - A new federal lawsuit by Pennsylvania's attorney general says the nation's largest student loan company engaged in abusive practices that have cost borrowers billions of dollars.

The complaint filed Thursday in federal court in Harrisburg, Pennsylvania, says Navient Corp. and Navient Solutions LLC sold "risky and expensive" subprime loans and damaged borrowers and co-signers by failing to perform core loan servicing duties.

The lawsuit says the companies funneled people into a program that added massive interest costs when they should have been directing them into repayment plans indexed to income.

Messages seeking comment from Navient weren't immediately returned.

The Consumer Financial Protection Bureau, Illinois and Washington state also sued over the loan practices earlier this year. Navient has denied those allegations and said the lawsuits will drive up loan costs.

News from © The Associated Press, 2017
The Associated Press

  • Popular penticton News
View Site in: Desktop | Mobile