Dumpsters of National Collegiate Student Loan Trust loans are sitting out in the real world that consumers are being sued over or have been sued over. The only problem is a sh** load of them are total garbage and not legally enforceable.
Vantage Capital Group LLC, which controls the National Collegiate trusts, reached a deal with the Consumer Financial Protection (CFPB) bureau to stop suing consumers and remove negative information on loans they pursued with bad information. You can read this for more information on the settlement.
The underlying banks and creditors that helped fund the loans had a conniption fit when Vantage Capital Group struck a deal with the CFPB over the National Collegiate Student Loan Trust cesspool of loans.
While the National Collegiate Student Loan Trust loans are the worst-performing student loan investment vehicle ever created by Wall Street, the underlying trusts that funded the loans don’t want to let consumers off the hook.
After getting their hands on the loans, Vantage Capital Group “became alarmed by mounting losses and the trusts’ inability to collect. Tens of thousands of collections lawsuits filed against debtors in state courts across the country yielded little in the way of recoveries. The CFPB alleged it found that in at least 2,500 cases, contractors working for the trusts sued borrowers even though the statute of limitations had expired or they didn’t have the right paperwork.” – Source
The Wall Street money pockets who funded the NCSLT loans are not asserting the loans are not legally collectible. They are saying that if an internal audit of the legality of the loans discovers the loans are garbage, they still want people to repay on them.
Basically Wall Street wants to push their inept business practices and lack of oversight off onto the backs to consumers with NCSLT loans they don’t legally owe.
Ugh I can’t stand these people! I took my private loan out with Bank One in 2002 for $25,000 and by 2015 had paid over $29,000. In January of 2015 I became permanently disabled and I still owed $19,000 on this loan, but by this time it was being serviced by AES (American Education Services). This whole ordeal was a nightmare! I was forced to file bankruptcy and I filed an Adversarial Proceeding against National Collegiate Trust and I WON by default judgment, can you believe that? I guess I know why now! They probably knew they couldn’t prove ownership! However, even though I won the judgment, they have assigned my loan to three different collection agencies/attorneys trying to collect. Now how can they get away with this? Why do they not have to follow the rules of the judgment? I am sure if I would have lost by default, they would have my car, or something. So now they have the green light to just have someone call and harass me every couple of months and I have two choices. I can either, call my attorney and pay her $275 an hour to let her fight/threaten them or I can get all upset and stressed out and I can deal with them myself. It is so messed up. I really wish there was a way that I could sue them for my return legal fees for the adversarial proceedings that I am STILL paying off, for the harassment/breaking the law, for continuing to report negatively on my credit report, and for the added stress and toll it’s taken on me. I hope they are taken down and have to pay everyone back. They are vultures! I just wish I could be a part of it!!!! 🙂
NCSLT has sued me twice for the same loan and I beat them both times as a ProSe. The documents they provided in discovery “proving” they had the right to collect was an embarrassment. I highly recommend that anyone sued by this company contact an attorney immediately if you don’t feel comfortable representing yourself. The only way they win is through default judgments.
You did the right thing. Unfortunately 90 percent of the time when consumers are sued they do nothing and lose by default.