You may remember these guys. We’ve talked about National Collegiate Trust and their barrages of lawsuitspreviously on this blog. They are the largest holder of private student loan debt and have filed literally thousands of lawsuits against borrowers. Odds are you didn’t even know that NCT bought your loan until you received a legal notice that you are being sued. They are not the loan originator, but a company that buys securitized and packaged loans from the originating institutions and they have a reputation for making people’s lives miserable.
IF YOU RECEIVE A LETTER FROM NATIONAL COLLEGIATE STUDENT LOAN TRUST
One of the first things that I advise people to do if they are in receipt of a letter from NCT’s lawsuit machine is to respond. Blowing this off will not do anything but cost you further down the road. If you think that by not responding, nothing will happen, you have obviously never heard the words “default judgment.” This means that they show up in court, you don’t, and the judge hands them everything they want. You can’t just respond to the letter, but you must actually show up in court and file an answer within 20 to 30 days after being served. You must make them prove their case, and make them prove in a court of law that you owe them – not your originating lender – for your loan.
There is some debate as to whether NCT can in fact bring proceedings under their own name – something that may open the way to a class-action lawsuit. As I noted above, they bought your debt from the originating lender, this does not automatically grant them standing to sue you for it. They must produce transfer documents and a promissory note that are in their possession in order to have the right to sue. In this case having your own paperwork can stand you in good stead. They should have copies of the original agreement, and be able to document account activity. If they can’t prove that you owe what they say you owe, odds are the judge will dismiss the case. Also be aware that you have rights under the Fair Debt Collections Practices Act, and despite some fairly irresponsible claims, student debts are covered under the FDCPA.
Above all, if you do not feel equal to the task of taking all this on, I urge you to come in for free consultation. I have a lot of experience with these guys, and I’m certain that that experience is something you can put to good use, either in the form of advice, or by retaining me as your representative. Get your paperwork together and we can work out a strategy to put NCT on the run – or at the very least knock them back a step. In a way they are relying on you to be too overwhelmed or too ignorant of the law to respond in a timely and productive manner. Let’s prove them wrong.