Facing lawsuits, Navient says it’s an industry scapegoat
(AP) — A Delaware student loan collection company is facing a string of lawsuits from regulators, but the CEO says Navient is a scapegoat for a credit industry with an image problem.
The News Journal reports that Navient CEO Jack Remondi says there’s a perception that student debt is in crisis. Remondi says his company is being targeted because it’s the most recognizable face in the industry.
In a recently filed lawsuit, California Attorney General Xavier Becerra claims Navient steered “vulnerable borrowers” toward expensive student loan repayment plans. Similar actions have been taken by regulators in Washington State, Illinois and Pennsylvania, as well as the federal Consumer Financial Protection Bureau.
Navient spun off from Newark-based Sallie Mae in 2014. It employs about 800 people at its headquarters in Wilmington.