5 STEPS TO DEFEND AGAINST A NATIONAL COLLEGIATE STUDENT LOAN TRUST LAWSUIT
National Collegiate Student Loan Trust is one of the largest private student
loan creditors in the country. National Collegiate is not an original
creditor which means that the student loan debt that they sue consumers
on is assigned to them. It is important to use an aggressive defense to
a lawsuit received from National Collegiate to obtain the best results.
When a summons and complaint is received from National Collegiate follow
these steps:
1. Submit an answer with affirmative defenses within 20-30 days of service
depending on the type of service. Defenses can include Standing; Privity
and Hearsay among others. An Answer must be submitted within 20 days if
service is made upon the defendant personally and within 30 days if service
is made by other means.
2. Request all the necessary documents through the Discovery process.
This includes a request for the initial loan agreement, statements and
more importantly, a chain-of-title showing the assignment of the debt
from the original party to National Collegiate. A lack of the assignment
paperwork or other documents can lead to serious problems for the creditor.
3. Request depositions of the witnesses who are supposed to testify on
behalf of National Collegiate. Remember that it is the plaintiff’s
burden to prove that the defendant owes the debt. They must properly submit
evidence to meet that burden. A deposition can frequently expose “straw”
witnesses that do not have personal first-hand knowledge of the assignment
of the debt to National Collegiate and instead shows that they are just
there to rubber-stamp affidavits of personal knowledge. This sort of exposure
can lead to serious Hearsay issues that National Collegiate may not be
able to overcome.
4. File a Motion for Summary Judgment asking the judge to dismiss the
matter without moving further towards trial based on the lack of evidence
presented by the plaintiff. If the Discovery process reveals that National
Collegiate has problems either with a lack of documented proof or shows
that their witnesses are not reliable and do not have personal knowledge
of the transactions portrayed, then a Motion for Summary Judgment is the
perfect tool to request that the case be dismissed at that point of litigation.
5. Use the leverage from the first four steps to negotiate an out-of-court
settlement for a significantly reduced balance. National Collegiate frequently
prefers to avoid litigation and would rather settle these student loan
matters for 40% - 75% off of the entire balance. This can be a useful
alternative as litigation can be lengthy, expensive and complicated for
both parties. A settlement eliminates the risk of making mistakes or even
losing the case while providing a significantly reduced balance and an
interest free re-payment plan in most cases.
National Collegiate Student Loan Trust can be defended against and even
defeated if these steps are followed. A consumer debt attorney should
always be consulted when a lawsuit like this is received.