Category Archives: National Collegiate Trust

NCT And Me

Shout out to Susan Tompor of the Detroit Free Press                (click here)

for an excellent article on NCT private student loan trusts.

With quotes from yours truly.

Anyway, the New York Times story I linked to last week is helping publicize the story, that NCT (National Collegiate Trust) has trouble proving it owns the student loans on which it is bringing lawsuits throughout the country.

Hey, I admit, I enjoy writing a blog post that links to a story in which I am quoted.

Starting here:

Big headlines are surrounding the possibility of up to $5 billion in debt that’s already in default being wiped out. The controversy centers on lawsuits filed against borrowers, student loans that were originated at banks a decade or more ago, and the National Collegiate Student Loan Trusts, which holds about 800,000 of these private student loans.

and:

Kurt O’Keefe, a Grosse Pointe Woods attorney who has a blog called “Discharge Student Loan,” said he’s hopeful that more people who are struggling to make payments on these private student loans will realize that they cannot just sit back if they’re sued for unpaid student loan debt. His web site is www.dischargestudentloan.com. 

So, I know I am right.

All kidding aside, calling more attention to these NCT loans, specifically, that there are defenses to their lawsuits, is great.

Not a lot of lawyers handle these NCT student loan cases, but if you are not in Michigan, I can probably find you one.

As I have blogged before:

“It’s a default judgment business model,” O’Keefe said. 

The trusts, he said, are essentially betting that the borrowers won’t show up in court and the creditor will win by default and get a judgment against you. Once a judgment is granted, it’s possible for the creditors to garnish money from one’s paycheck and other earnings in Michigan, as well as garnish state income tax refunds and money from credit union and bank accounts.

Now, there is no guarantee you will win if NCT sues you.  I have had one judge rule against them, and then, without any new information, decide that he was wrong the first time, and changed his mind.

Another judge had no time for me, and ruled for them.

But, there are the dismissals, where they give up because they cannot produce a witness, or, for unknown reasons.

When you are being sued for the kind of $ NCT seeks for student loan debt, you really cannot afford to not get a lawyer.

National Collegiate Trust (NCT) Student Loans

New York Attorney General Schneiderman has set his sights on the NCT (National Collegiate Trust) vulture.  Can you find it in the picture? Stacy Cowley in the New York TImes: National Collegiate’s trusts have aggressively pursued in court borrowers who fall behind on their student loan payments. An article this week in The New York… Continue Reading

National Collegiate Trust (NCT) Case Update

Seems I forgot to post the conclusion to one of the NCT private student loan, well, alleged to be so, collection lawsuits that I was defending in state court. NCT filed its motion for summary judgment,meaning that there was no issue of fact, they win, my client owes the money. We responded that NOTHING in all their pages of… Continue Reading

National Collegiate Trust and Wilfred American Educational Corp.

A couple of student loan scams to discuss this week. NCT and robo-signing National Collegiate Trust (NCT) continues to make news on the robo-signing front. NCT even files student loan collection cases when it has no robo-signed documents. Robo-signing came into its own as a term in connection with the mortgage practices so well displayed… Continue Reading

Some NCT Student Loans Ruled Dischargeable

NCT (National Collegiate Trust) does nothing but  buy private student loan debt from banks and – sue or otherwise try to collect. A recent 8th Circuit Court of Appeals case, In Re: Conway, involved both NCT and dischargeability of student loans in bankruptcy. The bankruptcy debtor, Conway, had 15 different student loans, plus some federal student… Continue Reading

NCT Student Loan Lawsuits In Michigan

The cases involving National Collegiate Trust (NCT)  suing my clients are wending their way through the court system. I have had two mediated so far, one a district court student loan case and one in a circuit court. I say NCT, but, there are apparently 24 different trusts that allegedly hold private student loans that… Continue Reading

NCT Student Loans In Michigan

Today on the student loan front, someone calls with  $100,000 of private student loans, and another $52,000 in government student loans. The government loans are in forbearance until February, 2016. So far, so good. NCT (National Collegiate Trust) buys bad private student loans. They do not lend anyone money. They, do, however, apparently buy bad… Continue Reading