One of the more notorious private student loan businesses in America is National Collegiate Trust. National Collegiate Trust is an organization that specializes in the collection of private student loan debt in New Hampshire, Massachusetts and elsewhere. Since your loan is one of thousands of student loans transferred multiple times, this can create a real “shell game” surrounding who actually owns your loan. In my practice in NH and Massachusetts, I am seeing the same thing other lawyers are reporting across the United States — a sharp spike in lawsuits filed by National Collegiate Student Loan Trusts (“NCT”). If NCT sues you, there are deadlines to file an Answer to this Complaint. To defend a lawsuit by National Collegiate Trust, there are a few things you need to know:
— Consult with a lawyer to discuss your options in defending the lawsuit
— You never signed a contract with National Collegiate Student Loan Trust to borrow money so it has a burden of proof to show it actually owns your student loan.
— “Standing” is the legal name for how NCT proves it owns your debt and it has had a problem proving that in other cases.
Sometimes people don’t fight the lawsuit because they feel a moral obligation to repay it but it’s reasonable to make sure NCT actually owns your loan and is entitled to payment from you. If you do nothing, NCT will get a default judgment against you foreclosing you from litigating this issue in the future. Hiring a lawyer to make sure they can prove their case can lead to better outcomes.
This post should not be considered as legal advice for your particular situation. You should consult a lawyer in your jurisdiction.