Many people with private student loans here in New Jersey end up dealing with an outfit called National Collegiate Trust (NCT), or its affiliate, American Education Services (AES). If you ended up defaulting on the loan, you were probably also sued by them.
This raises the question, who are they and what do they have to do with the loan? I didn’t borrow the money from them!
What is NCT?
Good question! National Collegiate Trust isn’t just one company or one trust, its a family of many separate trusts under the parent company, National Collegiate Funding. These trusts were created in Delaware and operate throughout the country.
NCT buys student loans from the original lenders (such as PNC Bank, JP Chase, Bank of America, Credit One and a few others) and then attempts to collect them for a profit. In that regard they are no different from entities like Midland Funding, Portfolio Recovery, or LVNV Funding.
Can I Fight NCT's Law Suit?
However, in order to be successful in doing so, if challenged, it must show ownership of the loan (in other words, legal proof that they bought it and are rightfully stepping into the shoes of the original lender).
In addition, since NCT is a Delaware entity, it must register as such with the State of New Jersey in order to do business here and use our court system. If it does not, suits it brings here can be subject to dismissal.
In bringing suit, NCT is playing the odds, since the vast majority of collection lawsuits are never challenged by the debtor; the creditor wins by default. This is why it is so important for student loan borrowers to file answers to these suits and put NCT to its proofs. You might prevail!
But What If NCT Already Has a Judgment?
No problem! Remember, NCT isn't registered with the State of New Jersey and shouldn't be using our courts. Therefore, any judgment they may have entered was wrongfully obtained! This means that you can move to vacate (lift) the judgment and dismiss the case.
You should also do this as soon as possible if you own, or ever hope to own, real estate. This is because these judgments can act as liens against land in New Jersey. It can cause problems for a purchase or a sale or refinance of a property you already own.
What Can You Do About It?
If you live in New Jersey, and have been sued by NCT on a student loan or they have a judgment against you, you must take action! I have experience dealing with NCT and their lawyers and can help! Call my office right away at 856-432-4113 or contact me through this site to schedule a consultation.
If you would like more information about student loans, you can download my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.
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