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Navient's (NAVI) Plea to Dismiss CPFB's Lawsuit Rejected
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Navient Corporation’s (NAVI - Free Report) appeal to dismiss the Consumer Financial Protection Bureau's (CFPB) lawsuit was recently rejected by the U.S. District Judge Robert Mariani.
Filed in Jan 2017, the lawsuit claimed that the company had created hindrances to repayment by providing misleading information, processing payments inaccurately and failing to act on borrowers’ complaints.
Navient’s appeal was based on the argument that the regulator was unconstitutional. Further, it claimed that the bureau had not specified as to what practices are unfair.
However, the Pennsylvania-based judge dismissed the bid saying that it is too early to reach a conclusion whether the troubles faced by borrowers could be avoided. Further, the judge pointed out that the CFPB’s complaint provides several instances of errors in payment processing by the company, and the lack of any corrective steps on the company’s behalf to prevent the same mistakes from occurring again.
Per CFPB’s estimates, Navient services over $300 billion of loans for more than 12 million borrowers. Also, an analysis conducted by it reflected that Navient is the most complained about financial company in the U.S.
However, many Republicans, backed by the U.S. Department of Justice, have alleged that CPFB’s structure is unconstitutional as the director can be removed from his position only for cause. The federal appeals court in Washington, D.C. is likely to resolve the matter in the coming months.
Notably, this leading student loan provider currently faces heightened regulatory scrutiny over alleged anti-consumer practices in the U.S. student loan industry and is thus struggling with several litigation issues.
Also, shares of Navient have lost 11.5% year to date versus the industry’s decline of 2.4%.
Currently, Navient carries a Zacks Rank #4 (Sell).
Green Bancorp, Inc witnessed upward earnings estimate revision of 18.1% for the current year over the past 30 days. Also, its share price has gone up 128.7%, over the last one year.
The Zacks Consensus Estimate for FS Bancorp, Inc. has revised 16.2% upward for the current year over the last 30 days. Its share price has seen a 63.9% rise over the last one year.
First Cash’s Zacks Consensus Estimate has been revised 2.3% upward for the current year over the last 30 days. Also, its share price has jumped 14.1% over the last one year.
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Navient's (NAVI) Plea to Dismiss CPFB's Lawsuit Rejected
Navient Corporation’s (NAVI - Free Report) appeal to dismiss the Consumer Financial Protection Bureau's (CFPB) lawsuit was recently rejected by the U.S. District Judge Robert Mariani.
Filed in Jan 2017, the lawsuit claimed that the company had created hindrances to repayment by providing misleading information, processing payments inaccurately and failing to act on borrowers’ complaints.
Navient’s appeal was based on the argument that the regulator was unconstitutional. Further, it claimed that the bureau had not specified as to what practices are unfair.
However, the Pennsylvania-based judge dismissed the bid saying that it is too early to reach a conclusion whether the troubles faced by borrowers could be avoided. Further, the judge pointed out that the CFPB’s complaint provides several instances of errors in payment processing by the company, and the lack of any corrective steps on the company’s behalf to prevent the same mistakes from occurring again.
Per CFPB’s estimates, Navient services over $300 billion of loans for more than 12 million borrowers. Also, an analysis conducted by it reflected that Navient is the most complained about financial company in the U.S.
However, many Republicans, backed by the U.S. Department of Justice, have alleged that CPFB’s structure is unconstitutional as the director can be removed from his position only for cause. The federal appeals court in Washington, D.C. is likely to resolve the matter in the coming months.
Notably, this leading student loan provider currently faces heightened regulatory scrutiny over alleged anti-consumer practices in the U.S. student loan industry and is thus struggling with several litigation issues.
Also, shares of Navient have lost 11.5% year to date versus the industry’s decline of 2.4%.
Currently, Navient carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same space are Green Bancorp, Inc. sporting a Zacks Rank #1 (Strong Buy), FS Bancorp, Inc. (FSBW - Free Report) and First Cash, Inc. (FCFS - Free Report) with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Green Bancorp, Inc witnessed upward earnings estimate revision of 18.1% for the current year over the past 30 days. Also, its share price has gone up 128.7%, over the last one year.
The Zacks Consensus Estimate for FS Bancorp, Inc. has revised 16.2% upward for the current year over the last 30 days. Its share price has seen a 63.9% rise over the last one year.
First Cash’s Zacks Consensus Estimate has been revised 2.3% upward for the current year over the last 30 days. Also, its share price has jumped 14.1% over the last one year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>