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Violation Tracker Individual Record

Company: Sallie Mae Inc.
Current Parent CompanySLM Corp.
Parent at the Time of the Penalty Announcement subscribe to see this data field
Penalty: $60,000,000
Year: 2014
Date: May 13, 2014
Offense Group: consumer-protection-related offenses
Primary Offense: consumer protection violation
Secondary Offense: Servicemembers Civil Relief Act
Mega-ScandalStudent Loan and For-Profit College Abuses
Violation Description: The Department of Justice announced the federal government's first lawsuit filed against owners and servicers of student loans for violating the rights of servicemembers eligible for benefits and protections under the Servicemembers Civil Relief Act. The complaint alleged that three defendants engaged in a nationwide pattern or practice, dating as far back as 2005, of violating the SCRA by failing to provide members of the military the six percent interest rate cap to which they were entitled. The three defendants were Sallie Mae Inc. (later known as Navient Solutions Inc.), SLM DE Corporation (later known as Navient DE Corporation), and Sallie Mae Bank. The complaint further alleged that defendants Sallie Mae Inc. and SLM DE Corporation also violated the SCRA by improperly obtaining default judgments against servicemembers.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Rights Division
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Delaware
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: financial services
Specific Industry of Current Parent: financial services
Source of Data(click here)
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Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.