Company Overview of Sallie Mae Bank
Sallie Mae Bank provides education loans to students and their families. It funds loans under various education loan programs, including education and private consolidation loans. The company was founded in 2005 and is based in Reston, Virginia. Sallie Mae Bank operates as a subsidiary of SLM Corporation.
5217 South State Street
Murray, UT 84107
Founded in 2005
Key Executives for Sallie Mae Bank
Chief Executive Officer and President
Chief Executive Officer of Sallie Mae and Director
Executive Vice President of SLM Corporation
Compensation as of Fiscal Year 2014.
Sallie Mae Bank Key Developments
Joseph A. DePaulo Resigns as Member of Board of Directors of Sallie Mae Bank
May 28 14
Joseph A. DePaulo has submitted his resignation as a member of the board of directors of Sallie Mae Bank, effective immediately.
Federal Deposit Insurance Corp. Announces Settlement with Subsidiaries of SLM Corp. and Navient Corp
May 14 14
The Federal Deposit Insurance Corp. announced a settlement with subsidiaries of SLM Corp. and Navient Corp. for alleged unfair and deceptive practices as well as violations of the Servicemembers Civil Relief Act (SCRA) related to student loans. The settlement involved Sallie Mae Bank, Salt Lake City, and Navient Solutions Inc. (formerly known as Sallie Mae, Inc.), Olney, Md., subsidiaries of SLM Corp. and Navient Corp., respectively, according to an FDIC release. The FDIC said that the parties (referred to as Sallie Mae in the FDIC order) violated federal law prohibiting unfair and deceptive practices by: Inadequately disclosing its payment allocation methodologies to borrowers; Allocating payments across multiple loans in a way that maximizes late fees; and Inadequately disclosing how to avoid late fees in billing statements. The FDIC also said it determined that Sallie Mae violated the SCRA by unfairly conditioning receipt of benefits upon requirements not in the act, improperly advising servicemembers they must be deployed to receive SCRA benefits, and failing to provide SCRA relief after having been put on notice of borrowers' active duty status. Sallie Mae and Navient have been ordered to pay $6.6 million in penalties, $30 million in restitution to harmed borrowers, and fund a $60 million settlement fund with the U.S. Department of Justice. This is a result of an examination of Sallie Mae conducted by the FDIC. A separate action has been taken by the Department of Justice with regard to violation of the SCRA. In addition to the restitution payments and civil monetary penalty, the FDIC has ordered Sallie Mae to take affirmative steps to see that late fee and avoidance payment allocation are clear and conspicuous, that servicemembers receive proper treatment under the SCRA and that all residual violations are remedied in accordance with applicable laws.
The Federal Deposit Insurance Corporation Announces Settlement with Sallie Mae Bank and Navient Solutions Inc for Unfair and Deceptive Practices and Violations of the Service Members Civil Relief Act
May 13 14
The Federal Deposit Insurance Corporation (FDIC) announced a settlement with Sallie Mae Bank and Navient Solutions Inc. and herein collectively referred to as Sallie Mae, for unfair and deceptive practices related to student loans in violation of Section 5 of the Federal Trade Commission Act (Section 5) and for violations of the service members Civil Relief Act (SCRA). This action results from an examination of Sallie Mae by the FDIC regarding Sallie Mae's compliance with federal consumer protection statutes, including Section 5 and SCRA, and a companion investigation by the Department of Justice (DOJ) related to the treatment of service members. As part of the settlement, Sallie Mae stipulated to the issuance of Consent Orders, Orders for Restitution, and Orders to Pay Civil Money Penalty (collectively, FDIC orders). The FDIC orders require these entities to pay civil money penalties totaling $6.6 million, to pay restitution of approximately $30 million to harmed borrowers and to fund a $60 million settlement fund with the DOJ to provide remediation to service members. The DOJ has also taken separate action against the entities with regard to violations of the SCRA. The FDIC determined that Sallie Mae violated federal law prohibiting unfair and deceptive practices in regards to student loan borrowers through the following actions: Inadequately disclosing its payment allocation methodologies to borrowers while allocating borrowers' payments across multiple loans in a manner that maximizes late fees; and Misrepresenting and inadequately disclosing in its billing statements how borrowers could avoid late fees. The FDIC determined that Sallie Mae violated federal laws regarding the treatment of service members (SCRA and Section 5) through the following actions: Unfairly conditioning receipt of benefits under the SCRA upon requirements not found in the Act; Improperly advising service members that they must be deployed to receive benefits under the SCRA; Failing to provide complete SCRA relief to service members after having been put on notice of these borrowers' active duty status. In addition to the payment of restitution to harmed borrowers and a civil money penalty, the FDIC orders require Sallie Mae to take affirmative steps to ensure that disclosures regarding payment allocation and late fee avoidance are clear and conspicuous, that service members are properly treated under the SCRA, and that all residual violations be remedied to ensure compliance with applicable laws.
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