Missing paperwork for tens of thousands of private loans could mean your student loan debt is wiped away! Click here to learn how to determine if your student loans are private or federal.
A slew of lenders are tangled in this paperless web of debt including Navient, but at the center of it all is the National Collegiate. According to the New York Times, “National Collegiate is an umbrella name for 15 trusts that hold 800,000 private student loans equaling over $12 Billion. The trusts aggressively pursue borrowers who fall behind on their bills. Across the country, they have brought at least four new collection cases each day, on average — more than 800 so far this year — and tens of thousands of lawsuits in the past five years.”
The loans that National collegiate hold against former college students were originally made by dozens of different banks, then grouped together and sold to investors. While being passed through multiple hands the critical paperwork documenting the loans ownership have disappeared. When someone can’t prove their own ownership of the loan, then the loan belongs to nobody, and nobody owes.
According to Robyn Smith, a lawyer with the National Consumer Law Center, she has seen multiple dozens of cases where the company drops the lawsuit on the eve of a trial or deposition making her question whether they actually possess the necessary documents required to prove ownership of these loan debts.
Richard D. Gaudreau, a lawyer in New Hampshire who has defended against several National Collegiate lawsuits has stated, “My experience is they try to bully you at first, and then if you’re not susceptible to that, they back off, because they don’t really want to litigate these cases.”
The amount of evidence against these companies is enough to keep this case open for at least another year or two. So, check back with Pirl in the near future for updates!
For questions, comments, or concerns, Please contact us at Info@MyPirl.com