You may remember a few years ago when there were several news stories about mortgage companies and robo-signing. It was discovered that many mortgage lenders had been incredibly sloppy in completing their paperwork, and when mortgages were bundled and sold, there was never the appropriate documentation. So the end result was that while you may have taken out the loan with Bank of America, it was another entity trying to foreclose on the home. When borrowers started asking questions, it turns out that nobody really knew who owned the mortgage. Well, it is deja vu all over again with student loans.
National Collegiate Student Loan trust is a Delaware trust that has purchased many private student loans from the original lenders. The is called an assignment of a contract, and is usually completely legal. However, in order for the assignment to be valid it must state what loans are being sold and give all relevant information on the loans so that a chain of ownership can be traced. This way a borrower can in fact verify that the person trying to collect the money from them is in fact the rightful person. National Collegiate has filed a large number of lawsuits against consumers in West Michigan. Most people never bother to respond since they don’t think anything can be done, and they end up getting a judgment against them. The problem is that most of these lawsuits can be defeated because National Collegiate does not have the right to sue.
A client of mine is a good example of this, she took out a private student loan with fifth third bank back in 2006, and subsequently was unable to pay on it. Fifth Third allegedly sold the loan to National Collegiate, and National Collegiate then filed suit to collect. I was able to review the lawsuit documentation it was apparent that National Collegiate did not have a valid assignment, meaning they had no right to sue my client. Because of this we were able to have the lawsuit thrown out and now my client does not owe the loan anymore.
The fact that law firms are filing these lawsuits without proper documentation is despicable and just plan wrong. They are trying to pull a fast one on our Court system to cover up their mistakes, and we can’t let that happen. If you have been sued by National Collegiate or another private loan company there may be options, the worst thing you could do is nothing. Even if National Collegiate already has a judgment against you, there is still hope. Please, call us today and let us help you to defend your rights.