Navient Can't Escape CFPB Borrower Suit, Judge Says

Law360 (January 13, 2021, 6:42 PM EST) -- A Pennsylvania federal judge on Wednesday rejected student loan servicer Navient's bid to toss a Consumer Financial Protection Bureau suit, because the loan provider's argument that the agency is unconstitutional "strays afar" from a recent Supreme Court ruling.

Navient Corp. argued in its July motion that the Supreme Court's June 29 ruling in Seila Law LLC v. CFPB, which said that the agency's structure with a single director removable from office "for cause" violates the Constitution's separation of powers, meant the entire agency is "constitutionally unlawful." Navient also argued the statute of limitations governing the CFPB's claims against it had run out.

"Despite Navient's...

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