What Will Happen if I Ignore National Collegiate Trust?

I get this question pretty often, and the short answer is, “Nothing good will happen if you ignore National Collegiate Trust. Possibly something very bad.” If you’ve never heard of NCT, it’s probably because you don’t have a private student loan. These guys are the investment entity that Bloomberg labeled “a lawsuit machine” and “Robosigning 2.0” for their thousands of lawsuits filed against borrowers across the United States. It has everything to do with your private loan and the derivatives market, and the buying, packaging, and selling of these loans to investors. Remember the “London Whale,” the massive losses and public faceplant that JP Morgan Chase took in 2012? The amount of insufficiently covered potential losses on the market makes that whale look like an anemic guppy.

What happens to your loans after you get the money is essentially a multi-track operation.

In all of these transfers, there’s plenty of opportunities to lose vital information and – even if you are making payments – put you in the way of the lawsuit machine and their local law firms, as a lady named Nereida Jackson in Daytona is finding out.

What to Do if You Are Contacted by National Collegiate Trust

• DO NOT ignore a summons. If you fail to appear NCT will be able to obtain a summary judgment.
• DO NOT speak to NCT or their attorneys without your attorney present.
• DO NOT panic. In a lot of ways, NCT and their attorneys are counting on inexperience and panic to get you right where they want you.
• DO ask that they provide a copy of the signed promissory note. They have to prove that they own and have standing to collect the debt and that the amount they claim is owed is actually owed.
• DO understand your rights under the Fair Debt Collection Practices Act.
• DO call me.

I am very serious. Get your loan paperwork together and call one of our offices. It’s a free consultation.

If you are being sued or if they are trying to collect your loan despite you being current with your servicer, you are going to need help. There are a number of defenses that can be used to get NCT’s suit dismissed, and you want that to happen before they can obtain a judgment and begin garnishment proceedings against you. If you have noticed a garnishment on your check from NCT, and had no notice, you have defenses to further garnishment. No matter where you are with them, you need to call out North Palm Beach or Fort Lauderdale office and work with experienced student loan lawyers.