Senator Warren Calls for SEC Probe on Navient, Suspecting Insider Trading
Pictured above is Sen. Elizabeth Warren at the IBEW.
On Monday, Senator Elizabeth Warren sent a letter to the SEC requesting an investigation into possible insider trading of shares of the student loan servicer Navient.
About 90,000 shares of Navient’s stock were purchased across three different trades. This occurred just before the Department of Education announced that it would no longer share information about the company with the Consumer Financial Protection Bureau (CFPB).
Senator Warren remarked that the timing of these trades seemed questionable and requested an investigation into possible insider trading. It still remains to be seen if anything will come out of Senator Warren’s request for a probe into insider trading.
This is not the first time the Massachusetts senator has gone after the student loan servicer; Warren has been very vocal in her criticisms of Navient. Last January, in response to the lawsuit filed by the CFPB, she tweeted, “We all know Navient has been caught red-handed cheating students and service members before.”
And in May 2016, she sent a letter to James Runcie, chief operating officer of the Department of Education, raising concerns over Navient’s increased lobbying expenditures. Warren wrote, “Navient should be focused on and investing in improving its abysmal student loan servicing operations, not lobbying Congress and the administration in search of sweetheart deals.”
And this is not the first controversy Navient has been involved in either; the company has been the subject of multiple different lawsuits this year.
The CFPB filed a lawsuit against Navient last January, accusing the company of cheating borrowers and taking shortcuts to minimize its own expenses. The CFPB alleged that Navient provided incorrect information to borrowers and incorrectly processed customer payments. Specifically, when borrowers send in large payments with instructions to pay off a certain loan, Navient applied partial payments across all of the loans in the borrower’s accounts.
Additionally, Navient faced allegations that it deterred its customers from enrolling in income-based repayment plans which might lower their monthly payments. The company has also been accused of pushing many of its customers into forbearance, where borrowers can stop making payments for up to a year but interest continues to accrue.
image copyright © Edward Kimmel