I received 4 letters from Weltman Weinberg and Reis on 11/16/15 stated that I had 30 days to verify that the student loans were valid before they took action. The loans total $19,000 but they stated that their client would settle for $16,000 National Collegiate and Trust.
I don not have $16. I work for a mental health center and make $32,000 per year here in Mississippi and have 5 children one is in college.
I contacted the company when I received the letters to attempt to set up payment arrangements and the representative named Vicky would not hear of it she told me that she was done with me and that she was going after the cosigner which is my mother who is 81 years old and now has credit issues herself.
It was 2005 when the loans were first taken out. She told me that she had talked to my mother and that my mother stated she did not know about any loans (she told her this to get her off the phone because she has kidney disease and was not feeling well) she went on to tell my mother to go to the police department and file a report on me for false identity but she told me that she was processing the paperwork to have me arrested as we spoke; which was true?
She went on to tell me to cash in my retirement but with the state of MS you have to retire or resign in order to cash in your retirement which is a no no with me.
First things first, does Vicky work for Weltman Weinberg and Reis or National Collegiate Trust? My feedback will change slightly depending on the answer.
There is no way a debt collector at National Collegiate Trust (or at the Weltman Weinberg firm) was processing paperwork to have you arrested. Any debt collector making such claims is out of line and can be sued for that. But I am getting ahead of myself until you identify who Vicky works for.
Weltman Weinberg and Reis are attorney collectors
Weltman Weinberg and Reis are a debt collection law firm. Their primary business is collecting on defaulted debts, and they often will rely on the courts to do that.
The Weltman firm, at least in my opinion, is much like any other collection outfit, in that they rely on the economy of scale and collection lawsuits to go uncontested so that they can meet profit goals.
The debt collectors you can connect with at Weltman Weinberg and Reis are willing to negotiate settlements. The $16,000 offer may not be as low as you can get. I have seen private student loans settle for under 50% of the balance owed. Can you get creative and come close to raising half the $19,000 Weltman is trying to collect? If not immediately, how long would it take?
Because the Weltman collection law firm is involved your risk of being sued for the student loans is high. If you do not settle, being sued is part of an all too common progression from here.
If you are sued, you have options. You will preserve your options best going forward after that by defending the lawsuit initially. Your goals in doing so may include successfully getting the case dismissed, or buying the time you need to raise more money to get a settlement through that they will accept.
National Collegiate Student Loan Trust
Regardless of whether the debt collector (Vicky) you spoke to was working at National Collegiate Student Loan Trust or the Weltman firm, I would encourage you to sit down right now and put in writing (to the best of your ability) all that occurred during that phone call with Vicky.
Try to put down things like:
- The date of the call.
- Time of day.
- The caller ID if you received the call.
- The number and extension dialed if you placed the call.
- Vicky’s last name.
- Anything offensive or out of line that was said to your mother.
All of those details will come in handy when you post your answers to my questions in the comment section below. You should also make notes about any and all collection calls with National Collegiate Student Loan Trust regardless of who you spoke with.
Besides the questions above, also post answers to the following questions in your comment reply below:
Did you make any payments on these student loans? If so, when was the last payment made?
What state are you in?
Anyone dealing with private student loans with National Collegiate Student Loan Trust, or that Weltman Weinberg and Reis are collecting, is welcome to post in the comments below for feedback. If you would prefer to talk about your situation off line you can reach me at 800-939-8357, option 2 rings to me.
18 Nov 2015
Vicky does work for Weltman Weinberg and Reis I reside in Mississippi. I was able to talk to someone else today and he apologized for Vicky and asked if she gave me payment arrangements and I explained that she did not he went on to tell me that if I didn’t want to go to court for a private loan I need to try to come up with at least 20% about $3800. Where is the world can I get that from I don’t have $38. Wat can I do….
- Michael Bovee:
19 Nov 2015
Thanks. I do have a healthy amount of feedback to offer, but still need to know if you made any payments on the loans National Collegiate is trying to collect on since you took them out in 2005, and when those payments were last made. Ask your mom if she sent a payment in at all too (just in case).
I want to establish whether your state statute of limitations to legitimately sue you is expired.
19 Nov 2015
Yes. I made my last payment about 3 months ago and the 4 loans actually went into default on the 7th of November
- Michael Bovee:
19 Nov 2015
I look at this two ways. The offer to settle the balance is actually good… really good. I would first look at any and all options to pull that amount together and settle the debt with National Collegiate Student Loan Trust and get it out of the way for good. I would even put that on a credit card if I had room.
That prevents the lawsuit, which I suspect is coming.
I would then want to consult with an experienced FDCPA attorney in my general area and talk to them about any violation of your rights committed by Vicky at Weltman Weinberg and Reis. I will send you an email with contact details to any I know of that would be a good fit. All would typically offer a no cost consult and potentially work your file at no fee too.
23 Dec 2015
Wow, Michael. Your column is a breath of fresh air – and an even bigger lifesaver! I’ll get back to you later about my whole situation, but my initial inquiry is this: I thought there was no SOL on being sued for student loans. My loans are 35 (first round) and 25 years old (yep, 10 years for a 4-year degree) and I think my last piddly, minimum-wage status payment was maybe made in 2001, having never really had enough money to pay on it prior to that either or since. Please advise. Thanks! ~ living In Perpetual Fear of “The Knock On the Door”
- Michael Bovee:
23 Dec 2015
The loans remain for agencies to collect on, but not to legitimately sue you.
Call in for a consult when you are ready and I can cover more of the details.
- LYNN C:
24 Dec 2015
What state are you in and how long has it been since you paid???
I just helped out a coworker with this law firm and National Colligiate Trust….the firm left a message making vague threats. Recommended he download a call recorder and call back and see what they wanted. Well they broke the FDCPA 6 times….luckily they did say they were recording the call which basically gave my friend consent to record in my 2 party state. No mini Miranda, collector threatened jail, garnishment and disclosed the debt to 2 third parties. . The loan has been out of SOL for 8 years. Helped my coworker draft a letter of cease and desist and a demand of a 8k settlement or a copy of CD would be handed over to state AG and Morgan and Morgan, a law firm that loves to pursue these cases in Florida. He got a call from an attorney, offering a 5k settlement. He took it with a smile. I got a great steak dinner and 100 dollar starbucks giftcard.
“So Who is National Collegiate Student Loan Trust, LLC?
National Collegiate Student Loan Trust, LLC is a Delaware trust but is not a private student loan lender, guarantor, or loan servicer. It is a trust where private student loan companies pool thousands of loans for hedging purposes. The trust takes these loans and packages them into various trusts. This is why you will see numbers at the end of various names for National Collegiate Student Loan Trust, LLC. Those numbers (i.e. 2004-2, 2005-3, 2006-3, etc.) refer to the specific trust where your private student loan is located. The company then sells these packages to various investors or uses the trusts to secure other assets. You can see an actual Deposit and Sale Agreement between National Collegiate Student Loan Trust, LLC and National Collegiate Student Loan Trust, LLC 2007-1 here. These agreements are very complicated and complex because they must adhere to the laws governing trusts.
Associated entities for National Collegiate Student Loan Trust, LLC include:
• National Collegiate Student Loan Trust 2004-1
• National Collegiate Student Loan Trust 2004-2
• National Collegiate Student Loan Trust 2005-1
• National Collegiate Student Loan Trust 2005-2
• National Collegiate Student Loan Trust 2005-3
• National Collegiate Student Loan Trust 2006-1
• National Collegiate Student Loan Trust 2006-2
• National Collegiate Student Loan Trust 2006-3
• National Collegiate Student Loan Trust 2007-1
• National Collegiate Student Loan Trust 2007-2
• National Collegiate Student Loan Trust 2007-3
• National Collegiate Funding, LLC
• First Marblehead Data Services
• NCO Financial
• The Education Resource Institute, Inc. (TERI)
• Bank One, N.A.
• J.P. Morgan Chase, N.A.”
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