E.D.N.C.: Mungo-Craig v. Navient Solutions- Student Loan Servicer not a Debt Collector

Summary: Ms. Mungo-Craig brought suit against Navient, first in state court and then after removal in federal district court, alleging violations of the FDCPA and North Carolina Debt Collection Act. The district court denied her motion to remand, finding that it did have federal question jurisdiction to hear claims brought under the FDCPA and supplemental jurisdiction for the other state law claims, as they arose from the same common nucleus of facts. It then granted the Motion to Dismiss brought by Navient finding that Ms. Mungo-Craig had not alleged sufficient facts and could not, in fact, show that Navient, as there was no showing that it had commenced servicing of the student loans after to default, was a “debt collector” under the FDCPA. Lastly, the state law claims were dismissed as preempted by the federal Higher Education Act. For a copy of the opinion, please see: Mungo-Craig v. Navient Solutions- Student Loan Servicer not a Debt Collector