Today the Consumer Financial Protection Bureau is filing a lawsuit against Navient (formerly part of Sallie Mae), which is the nation’s largest servicer of both federal and private student loans. From our extensive investigation of the matter, we found that Navient has systematically and illegally failed borrowers at every stage of repayment.
On behalf of the Consumer Financial Protection Bureau, let me
welcome all of you and say that we much appreciate this opportunity to discuss
consumer financial markets with so many leading scholars in the field. As you
share your perspectives and expertise with us, they will inform our efforts to
empower and protect consumers. We look forward to having your insights.
Today, I want to talk to you about some of the issues people encounter when they are paying back debts. Specifically, I want to discuss the debt collection market and the student loan servicing market. Both are markets where consumers cannot vote with their feet, and where incentives and practices are not always aligned with consumer interests.