Consumer complaint received 2022-09-29
Company: Navient Solutions, LLC.
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
Dear XXXX XXXX XXXX XXXX and XXXX, Navient Solutions , LLC, and XXXX XXXX and XXXX XXXX, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX Sec XXXX XXXX you are hereby given notice that XXXX XXXX intends to commence a lawsuit against you for ___ $ XXXX plus additional punitive damages due to your Deceptive Business Practices while acting as the Guarantee Agency and/or Loan Servicer for a XXXX  Loan Number XXXX during the Covid 19 Pandemic Era. 
On XX/XX/2020, in the XXXX XXXX XXXX. XXXX, Congress passed the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. Contained in the CARES Act were provisions for student loan relief for borrowers which granted the Department of Education ( DOE ) the Authority to implement and enforce. The Rule Making Authority provisions were also waived and the DOE issued a series of Dear Colleague Letters ( DCLs ) directing and demanding Guarantee Agencies and Loan Servicers to perform certain actions. 
XXXX, Navient, and XXXX failed to abide by the CARES Act and defied the Department of Educations directives and other laws, specifically XXXX XXXX 



XXXX, Navient, and XXXX Violated Dept of Education XXXX XXXX whereby they : a. Failed to communicate rights to borrower b. Failed to Assign to defaulted loan to the Department of Education ( sold loan to Navient and XXXX ). If a loan defaulted during the pandemic and the borrower is working toward rehabilitation, those loans should also be assigned to the Department. 
c. Failed to assign 0 % interest rate XXXX further sold loan to Navient and XXXX who charged interest and Demanded, performed relentless collection activities. 
d. Furthered collection attempts through XXXX, XXXX, and Navient while under Covid 19 Cares Act relief. 
XXXX, Navient, and XXXX knowingly, intentionally, and willingly engaged in unconscionable actions to the detriment of the borrower XXXX XXXX and used Deceptive Business Practices to benefit themselves by failing to assign the loan to the Department of Education as directed by law, but instead further kept the loan in their possession, seeking benefits and monetary gain from credit offsets, reimbursements, interest payment collection, and other DOE Funds. These actions negatively affected the borrowers ability to obtain relief entitled by law, his credit worthiness as reflected in the negative credit reports, and caused extensive financial issues, and mental anguish. 
As a direct and proximate cause of these actions, XXXX XXXX has suffered financially because he could not refinance his home at the lowest rate in history ( denied loan request due to poor credit score only being negatively affected by inaccurate loan reporting ). Further XXXX XXXX must now enter a loan modification at 6.5 % at the highest point in many years which effectively causes {$170000.00} worth of additional interest over the span of the mortgage loan. This could have been prevented if not but for the selfless actions of XXXX, XXXX, and Navient to not transfer the loan back to the DOE and remove negative trade line reporting as directed by law. 
Further Fair Credit Reporting Act violations occurred because XXXX XXXX disputed the negative information directly with XXXX, XXXX, and Navient whereas they failed to investigate and prove accuracy of what they were reporting. 
Other violations and causes of actions without limitations will be pursued against all parties : 1 ) Breach of Contract Rehabilitation 2 ) Breach of Contract Original Loan Agreement 3 ) Breach of an Implied Warranty of Authority- a. Navient and XXXX purported to " enter into a contract '' with them on behalf of the Department or " to take some legally significant action '' on behalf of the Department and service the loan.

4 ) Tortious Interference with Contract 5 ) Breach of an Express or Implied warranty 6 ) Breach of Fiduciary Duty, Fraud, Negligence, and Negligent Misrepresentation as stated in the contract 7 ) Unjust Enrichment 8 ) Penal Code Section 32.45 ( misapplication of fiduciary property or property of financial institution ) 9 ) Loss of the benefit of the bargain XXXX, XXXX, and Navient knowingly and intentionally sought monetary gain by its Deceptive Practices and not transferring the loan to the DOE and preventing needed Covid 19 relief to borrower.

Company response to consumer: Closed with explanation