It’s no exaggeration to say that we are in a tough economy and the student loan problem is a big problem for the American people.
In fact, American borrowers say he owes more than $1.4 trillion in student loans, $100 billion of which is personal student loans, with little consumer protection.
One of the nation’s largest holders of this private student loan debt is a company called the National Collegiate Trust.
This company has a reputation for using aggressive and even malicious tactics to collect these private loans.
If you are facing, or think you may soon be facing, a collection lawsuit initiated by the National Collegiate Trust, you may feel out of control.
You may even be afraid to reply to correspondence about college debt.
Think again, you are not helpless. you can fight back
This article explains what the National Collegiate Trust is. About the company’s recent mistakes.
And most importantly, how to beat the National University Trust in court.
If after reading this article you still have questions about how to protect yourself from the National Collegiate Trust or debt collectors
We are here to help people in debt stand up to debt collectors.
The National Collegiate Trust can best be characterized as a litigation body that engages in highly shady practices, filing thousands of lawsuits against private student loan owners each year.
The fact that many of these lawsuits have been dismissed is no deterrent. If you have personal student loans and have heard of them, it’s pretty easy to panic.
They threaten and go on a rampage, giving you money right away to get you hooked. Some collectors even threaten to arrest or take other action and he is violating the FDCPA.
It is very important to keep calm, keep track of phone numbers, who you are talking to, and what you are talking about, and record your interactions with them.
Here are three things you should do if you are sued or have received service from the National Collegiate Trust.
See Also: How to Apply for a Limited Waiver for Student Loan Forgiveness
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What Is the National Collegiate Trust?
In general, the National Collegiate Trust is an entity that holds private student loan debt and packages the debt into securities for purchase by investors.
Investors make money on these securities when the student who borrowed the money paid off their student debt.
As such, the National Collegiate Trust has significant incentives to ensure that students are able to repay their loans, which of course translates into aggressive debt-collection practices.
Why is National Collegiate Involved in My Student Loans in the First Place?
If you took out a student loan from another lender and are wondering why the National Collegiate Trust contacted you, don’t worry. You are not alone.
The National Collegiate Trust does not offer student loans, but only purchases them from other lenders after the loan has been disbursed. This is how the process normally works.
If you are applying for a personal student loan for the first time, do so through a so-called loan originator.
Banks such as JPMorgan Chase, Charter One, and Bank of America. When the originator lends you money, they sell the loan to the depositor.
Although the mechanics are complex, the National Collegiate Trust is essentially a private student loan depositor.
To pay off alumni’s student loans, depositors such as the National Collegiate hire service providers to send invoices so students can pay their loans.
Usually, the name of the servicer appears on the invoice, not the name of the depositor.
However, the depositor remains the owner of your personal student loan.
If you don’t pay off your personal student loans, it’s the depositors who hire debt collectors to collect your payments.
The National Collegiate Trust is one of the nation’s largest depositors of private student loans.
Therefore, if you receive a debt collection request or litigation related to personal student loans, the National Collegiate Trust may appear as the entity seeking funding.
Also Read: How Does Student Loan Forgiveness Affect Your Credit Score?
National Collegiate Complaints
A little over two years ago, the National Collegiate Trust found itself in serious legal trouble by violently prosecuting borrowers over legally bad debts.
In particular, federal regulators at the Consumer Financial Protection Bureau (CFPB) took action against the National Collegiate Trust in 2017 after discovering that the National Collegiate was suing student loan borrowers.
Loans that the National University could not prove, or
Receivables for which the prescription (debt collection period) has passed
For his actions, the National Collegiate Trust agreed to pay more than $19 million in fines and reimburse 2,000 student loan borrowers $3.5 million.
National Collegiate Trust’s Legal Problems How to Beat Them in Court.
The most useful part of the CFPB’s enforcement action is that it details how student loan borrowers can protect themselves from the National Collegiate Trust and other aggressive borrowers.
In short, it provides a roadmap to defeating the National Collegiate Trust in court.
First, in order for the National Collegiate Trust to win a debt collection action against you, they must show that they actually own your student loans.
Evidence must be in the form of documents showing that the national university purchased and currently holds the loan.
As indicated by the CFPB, the National Collegiate Trust has had some difficulty organizing its records.
Second, in order to win a collection action, the National Collegiate must show that it attempted to collect the loan within the legally permitted time.
Every state has something called a “statute of limitations,” which essentially provides a specific amount of time for debt collection.
For example, if your state’s statute of limitations is five years, the National Collegiate You cannot legally attempt to collect a loan if it is more than 5 years past due.
What does it mean for you if you receive a debt collection claim from the National Collegiate Trust? To do this you need to:
If you receive a complaint by email, please respond immediately by sending a reply. Visit Solosuit.com for help submitting responses in your home state.
In fact, SoloSuit makes it easy to handle debt collection litigation in any jurisdiction.
In a lawsuit, you will need to ask the National Collegiate Trust to provide documentation proving that the National Collegiate Trust actually owns your particular student loan.
Please use the statute of limitations as a defense when submitting your response. Your student loans are likely to have expired.
The most beneficial aspect of confronting the National Collegiate Trust, rather than trying to hide from the National Collegiate Trust’s collection efforts, is that you are likely to get full forgiveness of your student loan debt.
They do this because the National Collegiate Trust is either unable to provide documentation proving ownership of your loan or the statute of limitations has expired.
Paying off debt does wonder for your credit score and peace of mind, so it’s worth fighting back.
Check Also: South Carolina Student Loan Review | Financial Aid Programs & Scholarship Information
Get SoloSuit to Help You Fight Back Against National Collegiate Trust.
SoloSuit makes it easy to handle debt collection claims.
SoloSuit is a web app that walks you through all the questions you need to complete your complaint.
Once finished, you can print the completed form and mail the printed copy to the court.
Or, even better, you can pay SoloSuit a small fee to submit your files and have an attorney review your documents.
If you are sued by the National Collegiate Loan Trust, don’t lose hope.
There are things you can do if you are sued by the National Collegiate Trust.
First of all, the first question most people ask is – Who is the National Collegiate Trust? Its official name is the National Collegiate Student Loan Trust.
They are giants that buy private student loans from lenders such as Wells Fargo, Charter One Banks, Chase, Bank One, Discover, Bank of America, and Union Federal Savings.
Even if your student loan debt changes ownership, you still owe the debt on the same terms.
If you don’t make student loan payments for more than 180 days, your account will be considered delinquent and likely to be sued.
The National Collegiate Trust uses a number of law firms, including Patenaude & Felix and Bleier & Cox, to sue consumers for late payments.
If you receive a complaint from the National Collegiate Student Loan Trust, we encourage you to:
Hire a Private Student Loan Attorney – Hire an experienced student loan attorney with a proven track record.
Many are trying to find new ways to make money out of the student loan crisis.
If you receive an NCT allegation, exercise extreme caution and investigate your statements.
Validity of Debt – In many cases, the entire claim may be rejected if the information on the claim is false, such as:
Missing or inaccurate case numbers, misspelled or inaccurate names in cases, debt amounts, dates, and other information.
Our experienced attorneys can help you verify your legal documents.
Negotiating a Private Student Loan Settlement – If you default on payments, your best option is usually to negotiate a settlement with the law firm that is suing you and the National Collegiate Trust.
Debt consolidation is basically a negotiation that the borrower (you) will repay, usually at a significantly reduced amount of the total amount owed, either in one lump sum or over time.
Lawyers on the other side often accept these settlements because they would rather receive some money from you than spend thousands of dollars fighting you in court.
Combat judgments for the debt – If you’ve ever faced a judgment for default, there’s a solution.
In fact, an afterthought doesn’t mean you’re cooked! We have had great success helping our clients recover wages and bank levies that were foreclosed following a default judgment against them.
Read More: How to Get a Health Professions Student Loan
FAQs
It varies. Student loans are typically not dischargeable during bankruptcy. However, there are some situations where filing for Chapter 13 bankruptcy could help you manage your student loan debt. Dial 419-740-5935 to schedule a bankruptcy consultation.
Don’t ignore or disregard the summons and complaint if you are being sued. Companies like National Collegiate Trust buy private student loans and file many lawsuits around the country against debtors. These businesses are undoubtedly anticipating that if you don’t respond to the case they can win a default judgment against you. If you speak with a lawyer, there may be options to settle, defend the case, or in some circumstances, file for bankruptcy (although bankruptcy usually will NOT discharge student loans).
Conclusion
If the National Collegiate Trust tries to sue you in court for paying your student loan debt, they don’t hold all your cards.
You Can Fight Back With SoloSuit’s help, you can easily handle a debt collection lawsuit.
Given the National Collegiate Trust’s poor track record of record keeping, it is quite possible that it will eventually win the case. Get started today at solsuit.com.
The bottom line is, there is a way to win the National College Student Loan Trust lawsuit.
Lawyers working for the National Collegiate Trust sued consumers for late payments. Winning a student loan recovery lawsuit requires solid legal representation.
If you are seeking the help of a debt litigation attorney, find someone to sit down with and discuss your case before you pay a fee. Never pay for advice upfront.