Student Loan Related

United Guaranty Commercial Insurance Company of North Carolina Runs Into Issues Collecting Student Loans

Written by Steve Rhode

A recent action by the State of Connecticut caught my eye. It involved a company named United Guaranty Commercial Insurance Company of North Carolina. According to the company, that division of their business is “student loan default insurance for loans made to undergraduate and graduate students enrolled in approved four-year public or private colleges and universities.” The company is also involved in other verticals as well like mortgage insurance, credit insurance, and underwriting services.

The State of Connecticut alleges the North Carolina company was attempting to collect on a student loan debt without being registered as a collection company in the state. That would certainly be a superb defense for a consumer to raise. It would also be something for any consumer to check if the company attempts to collect from them in the state they live in.

Connecticut says the company was collecting on a student loan made under The Student Loan Corporation-CitiAssist Loan Program. Other legal cases show they were collecting on Discover private student loans.

You can read the Connecticut allegations and demands here.

But at least one law firm is advertising success with consumers who have been approached by United Guaranty Commercial Insurance Company of North Carolina. A New York City law firm, The Langel Firm says, “We’ve represented several consumers recently who were sued for student loan debts brought by United Guaranty represented by Roach & Murtha, P.C.”

It’s worth keeping an eye on collections attempts involving United Guaranty Commercial Insurance Company of North Carolina for student loans.

I’d love to hear your feedback about any experience you’ve had with this company. Please post your feedback in the comments below.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Good afternoon,
    thank you for your very insightful article. I currently have student debts that went into the default and are currently held by United guaranty. They have sent me documentation stating that they’re going to take me to court over my student loans. I had an extensive period of time where they went unpaid because I was unable to contact them, because they kept selling the loan to another company, or another account within United guaranty.
    The whole thing is a mess, they want me to pay about $400 or $500 a month towards this debt where from any income standpoint I would be able to afford far less and keep food on the table for my family. They threaten to garnish my wage, and have put a block on my credit so i can not attempt a home purchase. I currently live in Georgia which is where I went to school before accruing this debt. Do I have a leg to stand on? Is this something I should take to a lawyer and possibly habit addressed? Is United guaranty possibly coming after my student loans in an unlawful way? If someone would email me and just let me know if I’m barking up the wrong tree, that would be an incredible amount of help. Again thank you for the very insightful and informative article!

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