Ambac and others beat CFPB lawsuit against student loan trusts

Law360 (March 26, 2021, 11:21 p.m. EDT) – A Delaware federal judge on Friday dismissed the Consumer Financial Protection Bureau’s action regarding the collection practices of a group of student loan trusts, endorsing the argument of the ‘speaker Ambac Assurance Corp. that the agency did not have the power to bring the action back when its structure was unconstitutional.

The CFPB claimed in its enforcement action that the trusts had filed thousands of collection lawsuits, falsely claiming to have personal knowledge of consumer accounts and debts. On top of that, at least 2,000 collection lawsuits were filed without the necessary documentation to prove that the trust owned the debt, the agency alleged.

In their…

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