naviant one of the largest student loan services in the US has just settled a major lawsuit with the Consumer Financial Protection buau or cfpb here's the Scoop naviant agreed to pay $120 million after the cfpb accused them of misleading borrowers providing inaccurate information and steering them towards expensive forbearances this practice led to inflated interest payments and even messed up the credit reports of disabled borrowers including injured veterans $100 million of that settlement will be distributed directly to affected borrowers the remaining $20 million will go to the cfpb's Civil penalty fund the cfpb's director Rohit Chopra called this a win for borrowers hoping it will put an end to years of abuse and exploitation naviant though isn't admitting to any wrongdoing they see this settlement as a chance to move forward and transform their company interestingly naviant stock actually went up after the settlement news broke looks like investors are feeling optimistic about this resolution so what's next naviant will no longer service federal student loans those accounts are moving to another serer MOA this settlement could also prompt other loan services to clean up their act and it's a good reminder for all of us to stay informed about our loans and rights if you've had issues with your loan serer don't hesitate to seek help and review your loan terms carefully thanks for watching be sure to like subscribe and hit the bell for more updates on buzzing news