New York’s Attorney General, Eric Schneiderman, issued subpoenas on Wednesday, August 16 seeking information from National Collegiate Student Loan Trusts. I’ve covered National Collegiate Trust periodically in this blog, but this may be the opening salvo that gets other states attorneys general off the fence and into the fight. The target of the subpoenas is information on every collection action filed by national collegiate trust’s attorneys against New York residents.
Who is NCT?
National Collegiate Trust is notorious for aggressively pursuing student loan borrowers in court when they fall delinquent or into default on their student loan payments. Despite the official sounding name, this is a private company, not a government agency. NCT was formed specifically to buy up, package, and collect on private student loan debt. However, the company is often unable to prove that National Collegiate Trust owns the debts that they are trying to collect. What’s worse, national collegiate trust may be trying to collect on debts that would otherwise be waived under borrower defense to repayment protections – depending on who originated the loans, you may be entitled to a full discharge.
National Collegiate Trust owns a huge amount of privately issued student debt, and in some ways these debts are likened to the toxic subprime mortgages that torpedoed the economy in the last recession. Investors in the company are also becoming a little bit jumpy, as defeat after defeat in court is publicized and shows that National Collegiate Trust is unable to produce paperwork that would establish their claims. This makes defendants far more likely to question the legitimacy of the plaintiff’s suit, and if ownership cannot be established, to walk out of court free and clear.
Having Trouble with NCT?
Are you having issues with National Collegiate Trust as your loan servicer, or have you been served with a summons and complaint for loan that is delinquent or in default? The most important thing you can do is not panic, and not to blow off the summons and complaint. If you fail to appear or to file an answer, you could be looking at a default judgment in which the judge simply awards National Collegiate Trust whatever they’re asking for. Default judgments are very hard to get rid of unless you can prove that you were never served in the first place, or that the judgment was due to a fraudulent act on behalf of the plaintiff.
National Collegiate Trust is going to have attorneys on their side in this fight. You should have an attorney on your side to fight for your interests. If you are having trouble with your private student loans, call our Fort Lauderdale or West Palm Beach office and set up an appointment for free initial consultation with our experienced attorneys. We have lots of experience going up against National Collegiate Trust, and know how to hold them to account. Call us today and let’s start getting National Collegiate Trust off your back.
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