National Collegiate Trust is part of a family of trust that buys private student loans from the original lenders and then attempts to collect them for a profit. 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 the NCT trusts are often out of state entities, they 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. Find out more here!