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Student Loan Servicer Navient Loses Bid to Derail CFPB Suit

Jan. 13, 2021, 10:19 PM

Navient Corp. was unable to shake a Consumer Financial Protection Bureau lawsuit alleging that the student loan servicing giant “systematically cheated” borrowers.

Judge Robert D. Mariani of the U.S. District Court for the Middle District of Pennsylvania on Wednesday rejected Navient’s motion to dismiss the CFPB’s January 2017 lawsuit. Navient had argued that the bureau was unconstitutional at the time.

The Supreme Court’s June ruling in Seila Law LLC v. CFPB said that the bureau’s leadership structure was unconstitutional, but fixed that defect by severing a Dodd-Frank Act provision that only allowed the president to fire the CFPB director for ...

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