California next state to sue nation's largest student loan servicer, Navient

The legal problems facing Navient, one of the nation’s largest student loan debt collectors, mounted on Thursday as California’s attorney general said he would file a lawsuit accusing the company of widespread deceptions and mistakes that cost borrowers millions of dollars.

The accusations echo those in a major enforcement case against Navient that was started by the Consumer Financial Protection Bureau last year, in the final days of President Obama’s administration. The bureau is still pursuing the case, but consumer advocates fear it will be dropped or settled by Mick Mulvaney, the bureau’s acting director, who has sharply reduced the agency’s powers and scrapped many of its lawsuits and investigations.

The actions of Mr. Mulvaney, who is also President Trump’s budget director, have prompted states to more aggressively flex their own consumer protection authority. California would be the fourth and largest state to sue Navient, joining Illinois, Pennsylvania and Washington...

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