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Speaker 1: Well, now it's time for our daily Bloomberg Law Brief,

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Speaker 1: exploring legal issues in the news. And Today, Bloomberg Law

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Speaker 1: host Gregg's Store discusses student loan provider Navigance recent courtroom

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Speaker 1: rose after a field attempt to block to lawsuits from

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Speaker 1: the Consumer Financial Protection Bureau. He speaks with Dallier Jimenez,

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Speaker 1: a professor at the University of Connecticut School of Law

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Speaker 1: and founding member of the CFPB. What is it that

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Speaker 1: Naviyance allegedly did wrong here? The CPB and Attorneys General

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Speaker 1: Madigan and um Ferguson are arguing that UM, there were

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Speaker 1: a lot of different problems, some at origination with private

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Speaker 1: student loans UM that private UH that individuals who put

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Speaker 1: into risky subprime loans that were designed to fail UM.

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Speaker 1: And then the bulk of the problem seems to be

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Speaker 1: coming in on the servicing UM and in particular the

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Speaker 1: servicing of federal loans that UM where the students were

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Speaker 1: having trouble making payments or the borrowers are having trouble

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Speaker 1: making payments. UM. One of the bigger allegations is that

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Speaker 1: naviyants put students or recommended forbearance and the Forum and

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Speaker 1: deferral plans UM instead of putting students into income based

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Speaker 1: repayment plans that were available to them. And the CFPB

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Speaker 1: is alleging that UM four billion dollars in interest charges

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Speaker 1: accrued for refferrals and forbearances UM in a five year

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Speaker 1: period or four and a half year period, UM, and

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Speaker 1: they think that a lot of that was illegitimate. And

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Speaker 1: so this ruling from a federal judge last week, what

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Speaker 1: is the significance of that ruling in in terms of

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Speaker 1: this lawsuit. Well, Navian was trying to basically say, at

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Speaker 1: least as to some of the allegations, the CFB was not,

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Speaker 1: you know, that the part of the lawsuits should be

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Speaker 1: thrown out. The court ruled on sort of all of

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Speaker 1: their allegations UM, very thoroughly. And UM. The first one

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Speaker 1: that that Naviant was, the first document that we're trying

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Speaker 1: to make was that the CFTB lacked statutory authority to

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Speaker 1: bil lawsuit against them. They also challenged the constitutionality of

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Speaker 1: the structure of the CFTB. And there's been a number

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Speaker 1: of lawsuits by UM by entities that were sued by

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Speaker 1: the CFTB who countered with UM. You know this argument

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Speaker 1: that the CFTV was I legitimate or that the structure

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Speaker 1: was on constitutional in some way. Other arguments they had

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Speaker 1: were a little more on points and frankly a little

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Speaker 1: when when set out loud. It's sort of a little embarrassing,

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Speaker 1: I think, because the CFP was arguing that through some

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Speaker 1: statements that Naviyan's had on their website telling students or bars,

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Speaker 1: if you have trouble with your loans, um, come to us,

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Speaker 1: we can help you. We can um, you know, put

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Speaker 1: you in a good repayment plan um. And then they

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Speaker 1: did not do that. They violated not just that duty,

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Speaker 1: but they were being deceptive. As danlier Himenes, professor at

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Speaker 1: the University at Connecticut School of Law, speaking with Bloomberg

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Speaker 1: Law host jar and Grasso. You can listen to Bloomberg

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Speaker 1: Law weekdays at one pm Wall Street Time here on

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Speaker 1: Bloomberg Radio Now. Among the top legal stories from Bloomberg Law,

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Speaker 1: five transgender a members of the U. S Military are

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Speaker 1: assuing President Trump and top Pentagon leaders, trying to stop

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Speaker 1: them from betting transgender people from serving in any capacity.

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Speaker 1: The suit seeks to prevent the president from reversing a

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Speaker 1: policy put in place during the Obama administration. President Trump

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Speaker 1: announced the policy shift last month. So far, it hasn't

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Speaker 1: been implemented. That's this morning's Bloomberg Labbrary. If you can

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Speaker 1: find more illegal news at Bloomberg Law dot com and

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Speaker 1: Bloomberg BNA dot com. Attorneys will find exceptional legal research

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Speaker 1: and business development tools there as well. Visit Bloomberg Law

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Speaker 1: dot com and Bloomberg BNA dot com for more information