Consumer complaint received 2024-07-30
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC. (OR)

Subject : Complaint Against Navient Corporation and Navient Solutions , LLC for FTC Federal Violation 16 C.F.R. 433.2 Missing from For-Profit Private School Loans Dear CFPB and FTC, I am writing to formally report violations of FTC Federal Regulation 16 C.F.R. 433.2 by Navient Corporation and Navient Solutions , LLC on three separate occasions. 

On XX/XX/year>, I received a School Misconduct Private Loan Discharge Application ( EXHIBIT A ). I completed this application, providing evidence of school misconduct along with federal violations committed by Sallie Mae, now operating as Navient Corporation and Navient Solutions , LLC . This completed application, along with the supporting evidence, was mailed on XX/XX/year>, with a return receipt. 

On XX/XX/year>, I received a notification through my Navient portal confirming receipt of my Private Loan School Misconduct Discharge Application ( EXHIBIT B ). On XX/XX/year>, I received a letter from Navient stating that my School Misconduct Discharge has been approved, and Navient has waived the remaining balances of my private student loans in the amount of {$16000.00} ( EXHIBIT C ). Enclosed with the letter was a check for {$630.00} ( EXHIBIT D ). 

However, Navient has, on three occasions, given, received, enforced, and accepted payments on private loan contracts where the Holder Rule was absent from the promissory notes for these three loans ( EXHIBIT E, pages 4, 5, 6 ). This constitutes a violation of federal law.

The Holder Rule, established by the Federal Trade Commission ( FTC ), requires that a specific notice be included in certain consumer credit contracts, including promissory notes for private student loans. ( EXHIBIT H ). This notice preserves the consumers right to raise claims and defenses against any holder of the loan that they could assert against the original creditor. If this rule is violated, it renders the contract unenforceable or provides the consumer grounds for seeking refunds of payments made under that contract. 

By approving my misconduct application, Navient has admitted that my school engaged in misconduct. However, the check issued to me, covering payments made only since XXXX, is grossly inadequate. I have not cashed this check, as I do not accept a mere {$630.00} after years of payments made on fraudulent contracts and a school proven to have engaged in misconduct. 

In my application, I outlined that Navient is in violation of federal law by accepting payments on three contracts that lack the Holder Rule, as required ( EXHIBIT F, pages 26, 27 ). Navient has had the opportunity to rectify this by issuing full restitution through my School Misconduct Discharge Application. I am entitled to a refund for all payments, including interest ( EXHIBIT G1 and EXHIBIT G2 ), on these three loan contracts that violate federal law. 

Unlike federal student loans, each private student loan contract requires a corresponding promissory note. There is no statute of limitations on the Holder Rule ( EXHIBIT H ). Each violation is subject to a {$50000.00} fine by the FTC. Even if a loan has been paid off but the promissory note did not include the Holder Rule, the contract is unenforceable. 

I am entitled to recover the payments I have made. I have included my application outlining proof of these violations, along with the contracts and promissory notes, for your review. Navient is not entitled to state that their decision on payments is proprietary, especially concerning impactful decisions related to federal violations and individuals ' financial well-being. 

I request your assistance in addressing this matter and ensuring that Navient complies with federal regulations. I seek a full refund of all payments made on these loans, along with the applicable interest, and enforcement of the fines for these violations. 

Thank you for your attention to this matter.