National Collegiate Trust Student Loans
Being sued for anything is upsetting, but the added burden of a student loan lawsuit can make it even more challenging.
Who is National Collegiate Trust Student Loans?
For those on the receiving end of a communication from the National Collegiate Student Loan Trust, there are a few things you need to know
The first thing is that NCT Student Loans is not affiliated with the federal government or any colleges. They are a Delaware-based business with a connection to a First Marblehead, which describes itself as, “… a leading provider of private student loan solutions for lenders, credit unions, and schools.”
They are not an official lender, but they purchase private loans and then pursue judgments on them. They then pursue judgments, even though in some cases it has been found that they do not have the necessary standing or position to prosecute the case. They have also been known to use unethical tactics and sometimes even harass debtors. But if you fail to challenge this in court and a default judgment is entered against you, it will be binding upon you.
What Should You do if You’re Contacted by National Collegiate Trust Student Loans?
Absolutely do not panic or blow this off
Default judgments are binding, and you then lose the opportunity to defend against the claims or that it is improper. Bankruptcy and other similar processes will not discharge the debt.
The first thing you should do is contact an attorney before the time to respond runs. Then the attorney will ask for a copy of your original loan documents, if you don’t have them. A number of courts such as the Ohio Supreme Court, have ruled against NCT because in case after case NCT has been unable prove that they even own the specific loan that they’re claiming. Proof, in this case, means documentation that they bought your loan in particular, and not just a tranche of amortized loans with your loan in it. In other cases, when the debtor obtains a lawyer, the NCT withdraws their case before it can reach court.
Contacting An Attorney At Van Horn Law Group
If you attempt to handle matters on your own or try to ignore them, you will put yourself in a far worse position
The situation may seem bleak, but the case is far from hopeless. The National Collegiate Trust relies on debtors being unfamiliar with unfair debt practices and the other legal requirements for successful collection. That doesn't have to be you though. Consider talking with an attorney at Van Horn Law Group to guide you out of the mess and avoid a student loan lawsuit.