National Collegiate Student Loan Trust (NCSLT) student loans have been among the most rediculous student loans out there. They suffer from a lack of documentation like failed subprime mortgages did and yet consumers are getting sued and losing over these loans every day. Consumers stick their heads in the sand when they get sued over NCSLT loans, or any loan, and they lose by default and wind up on the hook for loans that were never legally enforceable.
Bloomberg is reporting the CFPB, which Republicans want to gut or abolish, is on the verge of striking a settlement that will provide some relief to NCSLT debtors.
“Hundreds of thousands of Americans in debt from the worst batch of student loans Wall Street ever bundled could see their balances cut under a tentative agreement the feds have struck with a little-known firm that effectively owns more than $8 billion in securitized student debt.”
“Those trusts, the National Collegiate Student Loan Trusts, are collectively one of the nation’s largest owners of private student debt. Their preliminary settlement with the CFPB was reached by their ultimate owner, VCG Securities LLC, a Florida-based investment firm led by Donald Uderitz. If finalized, it would require the payment of “large sums” in restitution to borrowers and civil penalties to the U.S. government, according to a summary of the proposal filed in a separate court case.”
We will all have to keep a close ye on this rapidly evolving issue and relief appears to be on the way if the CFPB can act before Congress neuters them.