This is a developing story.
The federal Consumer Financial Protection Bureau (CFPB) has reached a major enforcement agreement with National Collegiate Student Loan Trust, the holder of hundreds of thousands of student loan accounts, about its debt collection practices. This agreement has the potential to impact thousands of student loan borrowers across the country.
National Collegiate Trust (“NCT”) is a collection of individual trust entities that purchased hundreds of thousands of private student loan accounts from commercial lenders (mostly banks) through securitization. In other words, banks bundled many private student loan accounts together, and then sold the bundles to NCT. When student loan borrowers with NCT-purchased accounts became unable to pay, NCT aggressively pursued these borrowers through private debt collectors and litigation.Read More