STUDENT LOAN LAWSUITS lawsuits have found NCT susceptible to one defense in particular - that of standing . NCT never has a contractual relationship with a borrower , only acquiring a loan along with thousands of others after multiple assignments . The amount of SEC documentation necessary to assign securitized student loans multiple times is staggering , so it ’ s not surprising this “ shell game ” can create issues regarding who owns any particular loan . One recent New Hampshire case illustrating the problem is that of NCSLT 2006-1 , 2007-4 v . Glynn , 219-2015-CV-00209 ( NH Sup . Ct . 2015 ) where Judge Houran dismissed two lawsuits filed by NCT . NCLST sued Glynn who filed a motion to dismiss , alleging the court did not have subject matter jurisdiction to hear the dispute because plaintiff did not own the debt , and , therefore , had no standing . The complaint attached a copy of the note indicating the lender was Bank of America , but no evidence of assignment . The court scheduled an evidentiary hearing requiring plaintiff to produce proof it owned the debt . After considering a number of documents submitted by NCT , Judge Houran at page 3 of that opinion held :
The court determines that the evidence presented is insufficient to demonstrate that the plaintiff owns the debt . As noted above , the 2007 pool supplement assigned certain loans to NCF [ i . e . National Collegiate Funding , LLC ] - namely the loans listed on Schedule I . However , NCSLT has failed to provide the court with a copy of Schedule I . Without Schedule 1 , the court cannot determine which loans Bank of America assigned to NCF . Thus , the court determines that NCSLT has failed to establish it owns Glynn ’ s debt .
Judge Houran ’ s decision is far from unique as a growing number of courts in other jurisdictions have arrived at similar conclusions albeit flying under the radar as unreported cases .
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National Association of Consumer Bankruptcy Attorneys Summer 2016 CONSUMER BANKRUPTCY JOURNAL 39