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.