Commonwealth of Pa. v. Navient Corp. – 3d Cirl – July 27, 2020
We decide two issues in this appeal: first, whether the Commonwealth of Pennsylvania may bring a parallel enforcement action against Navient Corporation and Navient Solutions, LLC under the [federal] Consumer Financial Protection Act of 2010. . . .after the Consumer Financial Protection Bureau has filed suit.
And second, whether and to what extent the federal Higher Education Act of 1965. . . .preempts the Commonwealth’s loan- servicing claims under its Unfair Trade Practices and Consumer Protection Law, 73 Pa. Cons. Stat. §§ 201-1 to 201-9.3.
We hold that the plain language of the Consumer Protection Act permits the Commonwealth’s concurrent action. And we follow our sister Circuits in holding that although the preemption provision of the Education Act preempts claims based on failures to disclose information as required by the statute, it does not preempt claims based on affirmative misrepresentations.
As the Commonwealth’s claims under the PA Protection Law based on affirmative misrepresentations and misconduct are not preempted, we affirm the District Court’s denial of Navient’s motion to dismiss.
