Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]
A discount retailer that sells itself as being friendly to military borrowers has been pushed into the spotlight, thanks to a report highlighting questionable lending and marketing tactics that lead some borrowers into lawsuits where they can’t reasonably defend themselves. [More]
Taking advantage of members of the military isn’t looked upon lightly by federal regulators. This idea was driven home today by the Depts. of Education and Justice, and the Federal Deposit Insurance Corp., who jointly announced a sizable settlement against student loan servicers Sallie Mae and Navient for overcharging and imposing excessive fees to military members.
The Servicemembers Civil Relief Act (SCRA) is intended, in part, to help protect active-duty members of the armed forces from having their homes taken away by foreclosure, but as we’ve seen, this hasn’t stopped banks from ignoring the law and taking those houses anyway. Now comes a report that banks have recently uncovered hundreds of additional wrongful foreclosures on the homes of servicemembers. [More]
The Servicemembers Civil Relief Act (SCRA) includes a number of protections for members of the armed forces who took out a mortgage before going on active duty. But as we have learned in recent years, there are at least 15,000 instances where banks failed to follow those guidelines — and hundreds — perhaps thousands of times where lenders have illegally foreclosed on servicemembers’ homes. [More]