First of all, if you have been sued by any of the NCSLT trusts, don’t delay! Failure to answer a NCLST lawsuit will result in a default judgment against you which means you lose. Judgments can have very severe and detrimental consequences to consumers on many different fronts.
We advise that anyone who has been served with a lawsuit should immediately seek out competent legal representation to review the lawsuit. I cannot stress enough that people shouldn’t delay and just think that the lawsuit will go away.
The issue with the NCSLT lawsuits is best explained by the New York Times’ article as follows: “Some of the problems playing out now in the $108 billion private student loan market are reminiscent of those that arose from the subprime mortgage crisis a decade ago, when billions of dollars in subprime mortgage loans were ruled uncollectible by courts because of missing or fake documentation. And like those troubled mortgages, private student loans – which come with higher interest rates and fewer consumer protections than federal loans – are often targeted at the most vulnerable borrowers, like those attending for-profit schools.
At the center of the storm is one of the nation’s largest owners of private student loans, the National Collegiate Student Loan Trusts. It is struggling to prove in court that it has the legal paperwork showing ownership of its loans, which were originally made by banks and then sold to investors. National Collegiate’s lawyers warned in a recent legal filing, as news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.”
The NCSLT lawsuits are especially problematic, in my experience. These are generally old loans which a majority of the time also required a co-signer which was usually an elderly parent, grandparent or aunt or uncle. The reason this was done, of course, was now the loan has potentially two people on the hook and they could always pursue the elder co-signer if the alleged debt was not paid.
More disturbingly, under these NCSLT lawsuits, the underlying borrower is always sued along with the co-signer. Many consumer lawyers in our country have identified these NCSLT problems for years. These problems have now been highlighted in the national news.
If you have an NCSLT lawsuit against you and/or your co-signer, please seek legal representation immediately. Our lawyers have been handling these cases for several years. Please contact our office location nearest to you in order to sit down with one of our licensed attorneys for a free consultation. Again, if you are sued by NCSLT, please act immediately and don’t delay!