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
$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.
$8.0M
Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.
Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in filing an amicus brief challenging DHS’s policy and practice of conducting warrantless civil immigration arrests. The press release describes a court challenge, not a privacy enforcement action or monetary penalty.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.