Navient Corp., the largest servicer of student loans in the U.S., was sued by a U.S. regulator over allegations that the company “systematically” cheated borrowers.

Navient, formerly part of Sallie Mae, failed to properly service private and federal loans, provided incorrect information to borrowers, improperly processed payments and didn’t respond to complaints, the Consumer Financial Protection Bureau said in a statement Wednesday announcing the lawsuit.

“For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their student loans,” CFPB Director Richard Cordray said in the statement.

Navient said in a statement that the allegations are “unfounded” and that it rejected an ultimatum from the consumer agency to settle before the presidential inauguration of Donald Trump. Navient said the suit’s timing “reflects their political motivations.”

Targeting Cordray

As Trump prepares to step into the White House, Cordray could be a target for replacement. He’s among several regulators put in place by President Barack Obama who are planning to stay on the job, but a recent federal court ruling left an opening for the incoming president to try to dismiss him.

If the Navient lawsuit had been held beyond Friday’s inauguration, the agency’s ability to file it may have been less certain.

Navient, based in Wilmington, Delaware, disclosed in a November filing with the Securities and Exchange Commission that it had received notice of the probe from the CFPB almost three years ago. The company said in its disclosure that the regulator was considering fining the company, demanding customer restitution and calling for changes in business practices.

“We believe that Navient repeatedly creates obstacles to repayment by misallocating or misapplying payments,” Cordray told reporters Wednesday. “The company all too often fails to correct its errors unless a consumer stays vigilant, discovers the problem, and contacts the company to insist that it be fixed.”

Managing Accounts

Loan servicers are the conduit between student borrowers and lenders, helping to navigate aspects of repayment that can be confusing to borrowers.

As with mortgage servicers, they manage borrowers’ accounts, process monthly payments and communicate with borrowers about repayment. When struggling borrowers seek to make alternative payment plans for their federal loans, they contact the servicer.

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