Navient provides details of CFPB settlement over student lending

In a regulatory filing, Navient announced that it has entered into a stipulated final judgment and order to resolve previously reported litigation with the Consumer Financial Protection Bureau concerning alleged violations of the Consumer Financial Protection Act of 2010, Fair Credit Reporting Act, and Fair Debt Collection Practices Act. Among other provisions, pursuant to the Order, the company agreed to pay a monetary penalty of $20M plus additional monetary relief and redress of $100M to a population of borrowers who will be determined by the CFPB. The company also agreed not to re-enter servicing of federal student loans and not to acquire any additional ownership interest in FFELP loans. The company does not expect these restrictions to impact its business plans, the outsourcing of its student loan servicing operations or the achievement of its other strategic actions announced in January 2024. The company also agreed to implement a compliance plan to ensure compliance with applicable laws and the terms of the Order. As of June 30, the company had recorded a contingency loss liability of $105M related to this matter.