The National Collegiate Trust Lawsuit is a legal case in which the plaintiff was able to successfully sue the now infamous Credit Card Companies because they were able to show that they had indeed mis-sold the students their credit cards and loans. The amount of damages claimed is enormous because the original debt owed is in excess of one billion dollars.
Credit card companies are not happy about having to deal with this level of consumer anger, so they hope to have the lawsuit dismissed by the federal court in New York. If this happens it will certainly help them out tremendously as more individuals are going to be forced to pay for their debts through the debt settlement process. This means that more money is coming into circulation each and every day and the economy will pick up.
National Collegiate Trust Lawsuit Dismissed
The lawsuit was originally filed by an individual who was employed by Transworld Systems, Inc. This company is a giant in the debt collection industry and they were heavily involved in the mis-selling of student loan trusts by Transworld Systems. The lawsuit says that the company’s president used his position to take advantage of the financial ignorance of certain groups of individuals and then he took out loans in their name to pay off at least some of those debts. Many of the plaintiffs who had already been promised a settlement through a lawsuit were already receiving low settlements through other debt collection agencies when the Credit Card Companies signed up with Transworld Systems.
This company also happens to be the main culprit behind the illegal and improper use of the government student loan bailout program known as the Federal Perkins Loan program.
There has long been suspicion that this company may have helped to orchestrate some of the illegal activities which are currently being investigated by the Senate Finance Committee. They are also believed to be responsible for the illegal signing of inaccurate paperwork which has allowed illegal aliens to qualify for student loans in the first place.
All this is believed to have happened because Transworld Systems was paid a huge sum of money by the federal government in kick backs for their services. A whistle blower began to go over the activities of this company with the aid of an internal investigation which turned out to be a sham. The company is now in heavy financial trouble and is facing a class-action suit for its part in this scam.
There is a chance that this latest case might just end up in a settlement which will be much smaller than the class-action lawsuit had hoped for.
In fact, one of the reasons that the lawsuit had been dismissed may have been that it was not an honest investigation. The false information was found only after the lawsuit had already been started. If true, this would make this a very unfortunate turn of events. One thing is for sure though, the National College Trust is not done with their illegal activities and if they continue, expect large fines and stiff jail time for these college defaulters.
Another class-action lawsuit has been filed against the nation’s largest credit card debt collection agency, which is owned by National College Trust.
This company is responsible for thousands of debt collection acts which have forced many innocent Americans to work for free under the threat of legal action. Now, instead of being free to pursue their chosen career, these people must pay steep fines and endure many months without any paid work. National College Trust is also responsible for the death of the Federal Debt Collection Practices Act, which was a much needed measure to protect consumers from unethical and abusive practices of debt collection agencies.
The new York court’s ruling in favor of National College Trust marks the latest victory for students and graduates over predatory lending companies.
These loan programs were first banned by Congress in 1996, when they were trying to rein in abuses with student loans. Over the years, however, these companies have become more sophisticated and their tentacles have become quite widespread.
Today, it seems as if they have become so large that they can do great damage to Americans who are simply trying to make ends meet. But thanks to the efforts of politicians in New York and other locales, these shady companies will be held accountable for their bad behavior and hopefully be forced out of business.