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pabradyphoto/iStock(JACKSON, Miss.) A ruling last week by the Mississippi Supreme Court has left law experts and state leaders in a state of confusion over
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Coleman
JACKSON, Miss. (Legal Newsline) - Student-loan servicer Navient can’t escape a consumer protection suit by the Mississippi Attorney General, even though it’s no longer originating loans in the state and argues federal law preempts the AG’s action.
The Mississippi Supreme Court affirmed a lower court decision allowing Mississippi’s four-count suit to proceed. As in other states, Navient is accused of inducing Mississippi borrowers to take out “risky, expensive loans” that they were unlikely to be able to repay and “deceptive servicing conduct.” The state is seeking an injunction halting the practices as well as disgorgement of “increased revenues and profits” Navient allegedly obtained through improper conduct.