b'Student Lending Actions by Year Number of Actions Amount of Recovery 18$986.9M12 1210 $204.1M $96.0M 7$42.0M $368.1M2016 2017 2018 2019 2020the CFPA, EFTA, and Regulation E by withdrawingNavient Defends Lawsuits Alleging for automatic payments from consumers bank accountsDeceptivePracticeswithout appropriate authorization, cancelling automaticIn October, New Jersey Attorney Generals Office filed payments without providing notice to consumers, anda lawsuit in New Jersey state court against national misrepresenting to consumers the amount of theirstudent loan servicer Navient Corp. and Navient minimum payments. Under the terms of this settlement,Solutions LLC (collectively, Navient) for allegedly Discover agreed to pay at least $10 million in consumerunconscionable commercial practices and deception redress and a $25 million civil money penalty. and misrepresentations made to consumers in violation of state law. The complaint alleged Navient steered CFPB and 47 States Agree to $330 Millionborrowers into costly forbearance programs, failed Settlement with Holder of Private Student Loansto notify borrowers about deadlines for repayment for ITT Technical Institute Students plans, encouraged borrowers to have cosigners and In September, the CFPB reached a settlement withsubsequently made it difficult to obtain cosigner release, a statutory trust that was created to hold beneficialand misled borrowers about their past due amounts. ownership of third-party private student loans forNavient has previously been under scrutiny in students of now-defunct for-profit ITT Technicalthe student lending space. In October 2017, the Institute. In its simultaneously filed complaint, the CFPBPennsylvania Attorney Generals Office likewise filed alleged that the trust provided substantial assistancesuit against Navient for allegedly engaging in unfair and to ITT in engaging in unfair acts and practices indeceptive lending practices and failing to offer proper violation of the CFPA because the trust allegedlyrepayment plans to students. In December 2018, the knew or was reckless in not knowing that manyUnited States District Court for the Middle District of student borrowers did not understand the terms andPennsylvania denied Navients motion to dismiss in its conditions of those loans, could not afford them, or inentirety, which was subsequently affirmed by the Third some cases did not even know they had them. UnderCircuit Court of Appeals in July 2020. The Third Circuit the terms of the settlement, the trust agreed to forgiverejected Navients core argument that states may not the remaining balances on all outstanding studentbring CFPA claims where there is already a pending loansapproximately $330 million in debt relief. Thislawsuit by the CFPB to address the same violative settlement is the third enforcement action initiated byconduct. As a result of this decision, discovery will the Bureau related to ITTs private loan programs. resume and the case will proceed to trial.45'