CFPB says Department of Education is obstructing suit against student loan giant

The Consumer Financial Protection Bureau is accusing the Department of Education of getting in the way of its lawsuit against a student loan giant.

The accusation from the consumer watchdog comes in a case the agency filed last year against Navient, alleging the student loan company caused borrowers to struggle unnecessarily by steering them towards repayment plans that weren’t in their best interest and ignoring borrowers’ instructions about how their payments should be allocated, among other claims.

In a letter submitted to the judge overseeing the case this week, the CFPB claims that Navient isn’t producing documents requested as part of the case that are “essential to identifying the universe of harmed consumers,” because they don’t have permission from the Department of Education.

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