Consumer complaint received 2025-04-08 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Navient Solutions, LLC.
State: WI

Complaint narrative:
My rights have been violated on multiple occasions. Customer service has been a nightmare. Please see details below amongst many others. 

Steering into Forbearance with Capitalization of Interest & Misleading PracticesI was steered into forbearance multiple times despite potentially qualifying for income-driven repayment plans or other programs that could have provided more favorable terms. Forbearance led to the accrual of interest, which was capitalized and added to my principal balance, ultimately exacerbating my financial burden. Forbearance should have been honored without accruing interest during periods of national emergencies such as COVID-19. However, interest still accrued during the forbearance, violating federal policies. These actions also appear to be a violation of federal regulations prohibiting such steering and the manipulation of borrower options for the benefit of the loan servicer. On XX/XX/XXXX, I was placed into forbearance, but XXXX continued to deduct payments during this time, leading to overdraft fees due to insufficient funds. The letter I received from XXXX did not adequately explain that interest would continue to accrue during this period and contradicts the agreement that payments would not be deducted during this time. This created unnecessary financial hardship and violated the terms regarding forbearance under the XXXX provisions. I was not provided with a revised loan agreement or clear documentation reflecting the new loan terms following the forbearance period. Specifically, on XX/XX/XXXX, I reached out to inquire about a revised loan agreement. The response I received stated that no new contract would be issued, and instead, periodic statements would be provided. However, these statements failed to clarify the revised loan terms or provide clear details regarding my payment obligations. 

Confusion Regarding Loan OwnershipI have also faced confusion surrounding the ownership of my loan. The loan was transferred to " Navient Private Loan Trust, '' but I was never properly notified of this change, nor was I provided with the required details regarding the new ownership, as stipulated in my loan agreement. This lack of transparency left me uncertain about how to manage and repay my loan effectively. 
Threat of DefaultI have repeatedly been subjected to threats of loan default, which I believe were made in bad faith, without proper consideration of my financial hardship advised many times on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX and active attempts to negotiate. Private student loans often go into default after missing XXXX monthly payments, but threats of default were made multiple times. On XX/XX/XXXX, I was notified that my loan was in jeopardy of default and encouraged to make a minimum payment of {$790.00} to avoid further consequences. On XX/XX/XXXX, I received another warning that my loan was close to default, with the entire balance potentially becoming due immediately. These threats continued over the following months : XX/XX/XXXX : I received a letter from XXXX detailing the " cost of default, '' which included threats of credit reporting repercussions. XX/XX/XXXX : My account was under review for litigation due to continued delinquency. XX/XX/XXXX : I was again threatened with default, and I was told that my account would be considered in default by XX/XX/XXXX, if no payment arrangements were made. These aggressive and harassing communications placed undue stress on me and created a sense of urgency that I could not meet due to my financial situation. The threats of default were made under duress and designed to deceive me into agreeing to unfavorable loan restructuring, Particularly when it was known that I was experiencing financial hardship. Such practices could be considered bad faith behavior and constitute coercion under unconscionability and coercion, violating the Fair Debt Collection Practices Act ( FDCPA ) and other consumer protection laws. These threats may constitute unfair and deceptive practices under the Debt Collection Practices Law ( 15 U.S.C. 1692-1692p ), which prohibits lenders from making false, deceptive, or harassing threats about legal action that they do not actually plan to take.

Misleading Communications and Conflicting TermsOn multiple occasions, I received conflicting information from XXXX about my forbearance period and repayment terms. For example, on XX/XX/XXXX, I received an email stating that my forbearance period would begin on XX/XX/XXXX, with a XXXX duration and a resumption date of XX/XX/XXXX. However, the statement I received on the same day indicated a different forbearance period running from XX/XX/XXXX, to XX/XX/XXXX. This discrepancy led to confusion and significant financial uncertainty. 
Improper Enrollment in ProgramsOn XX/XX/XXXX, I was informed by XXXX that my loan terms had been modified to a reduced APR and extended term, committing to a monthly payment of {$490.00}. However, the following day I received a Notice to Cure from Navient Private Loan Trust demanding an immediate payment of {$6300.00}. Despite my conversations with XXXX and Navient, there was a constant back-and-forth between conflicting loan terms, including changes to my repayment term from 210 months to 244 months and, ultimately, to 240 months. These misleading actions regarding loan options, as well as their use of threats to push loan modifications, constitute violations under the Wisconsin Consumer Protection Act ( WCPA ) designed to protect consumers from deceptive practices. 

Continued Collection Efforts After Agreement & Debt Collection ViolationsDespite confirming new terms with XXXX and Navient, I continued to receive calls and emails threatening delinquency and reporting inaccurate information. My repeated requests for these communications to cease went unheeded, further violating the FDCPAs prohibition on harassment. The loan contract clearly states that you have the right to stop automatic payments by accessing your online account or contacting the company directly. I submitted a request twice to stop payment using the online portal.However, my request to stop automatic payments was not honored, and payments continued to be deducted, leading to further financial strain. 

False AdvertisingEarnest consistently advertised programs that were not offered, such as the Rate Reduction Program, Term and Rate Modification Program, and the Skip-A-Payment offers, among others. I was not provided with information about how these programs worked and what benefits I would be entitled to, which ultimately led to confusion and poor financial decisions. These misrepresentations constitute violations of the Truth in Lending Act ( TILA ) and the Federal Trade Commission Act ( FTC Act ), which prohibit deceptive advertising and failure to disclose accurate loan terms.

Inaccurate Credit Reporting and False Delinquency ReportsAs a result of the erroneous handling of my account, XXXX has failed to accurately report my payment history to the three major credit bureaus, which has caused unnecessary damage to my credit score. These actions are violations of the Fair Credit Reporting Act ( FCRA ), which mandates the accurate reporting of credit information and the correction of any discrepancies. 

Illegal Clauses and Violations of Consumer Protection LawsI believe my loan agreement contains several clauses that are potentially illegal and unfair. For example, the contract allows Navient to disclose my delinquency to investors without my consent, which I believe violates privacy protections under 15 U.S.C. 1692-1692p. Additionally, the contract includes clauses that is deceptive and unfairly places burden on the borrower, such as requiring me to pay for communication costs related to my loan. 

Did not provide a revised loan upon new terms. Reference communication below. 
XX/XX/XXXX : The loan contract that I sent to you previously is the only contract for your loan at this time. We do not re-issue the entire contract with updated progress on your loan. Instead, we send periodic statements to keep you apprised of your loan details. Your monthly statements are available on your loan dashboard. Those statements will show recent payments, remaining balance, interest rate, and more. If you are experiencing any issues with locating these documents from your loan dashboard, please let me know. 
XX/XX/XXXX : I requested where I could find a copy of my contract and he advised on the XXXX website there is a loan breakdown on the statements. I requested he resend a copy of my agreement and he said he has requested this. Did I receive the same original contract? 

Interest should not have accrued during forbearance/covid according to the contract below but the statements have shown opposite of this along with verbal communication. 
You may give me a forbearance in three ( 3 ) month increments if I am temporarily unable to make my scheduled loan payments for reasons including, but not limited to : financial hardship, unemployment, or illness. Under certain circumstances, you may also give me forbearance without requiring me to submit a request or documentation. These circumstances include, but are not limited to, the following : periods necessary for you to determine my eligibility for a loan discharge, a period of up to sixty ( 60 ) days in order for you to collect and process documentation related to my request for a deferment, forbearance, change in repayment plan, or a local or national emergency ( interest is not capitalized during this period )

Company response to consumer: Closed with explanation