In September 2017, the CFPB sued National Collegiate Student Loan Trusts for “aggressively suing students for debts that they allegedly couldn’t prove were legitimate.” National Collegiate relied “on ‘false or misleading legal documents'” to sue students “and couldn’t prove that those being sued were the actual owners of the loans in dispute.” National Collegiate was ordered to pay over $19 million for its illegal debt collection practices.
- The CFPB “fined a student loan creditor, the National Collegiate Student Loan Trusts, and its debt collector [Transworld Systems] nearly $22 million, charging them for aggressively suing students for debts that they allegedly couldn’t prove were legitimate.” The companies “sued thousands of students by relying on ‘false or misleading legal documents’ and couldn’t prove that those being sued were the actual owners of the loans in dispute.” National Collegiate was “ordered to pay ‘at least $19.1 million,’ including initial redress to harmed consumers and a civil penalty.” Transworld was fined $2.5 million. [Roger Yu, “Loan creditor fined $19M for suing students with ‘false’ legal documents,” USA Today, 09/18/17]