Penalty Amount
$142,500,000
Consumers Affected
416,000
Connecticut Attorney General William Tong announced a $1.85 billion multistate settlement with student loan servicer Navient for unfair and deceptive servicing practices. Navient steered borrowers into costly forbearances and originated predatory loans, resulting in debt relief for over 66,000 borrowers and restitution for 350,000 federal loan borrowers. The settlement includes a $142.5 million payment to attorneys general and conduct reforms to improve servicing practices.
Navient must pay $142.5 million to the attorneys general, cancel $1.7 billion in private student loan debt for over 66,000 borrowers, provide approximately $260 restitution payments to 350,000 federal loan borrowers, implement conduct reforms including training specialists and explaining income-driven repayment options, and notify borrowers about the settlement and Public Service Loan Forgiveness waiver.
In-house legal teams should review all student loan servicing agreements and loan origination contracts with Navient or similar servicers. Focus on clauses governing repayment options (especially income-driven repayment plans), forbearance procedures, disclosures to borrowers, and prohibitions against steering borrowers into more costly products. Required changes may include mandating clear, prominent disclosure of all available repayment options, prohibiting incentives for steering borrowers to forbearances over income-driven plans, implementing robust oversight of servicing practices, and ensuring accurate application of payments and credits.
Entity
Navient
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-announces-settlement-with-student-loan-servicer-navient
navient cjfinal 01132022.pdf?rev=b01039889cfc4c6191678fe315c
https://portal.ct.gov/-/media/ag/press_releases/2021/navient-cjfinal-01132022.pdf?rev=b01039889cfc4c6191678fe315cbce0f&hash=0869DBDEBEC8758CDD521D615DD46F0E
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.