Student loan creditor fined $19M for using false credit documents

The National Collegiate Student Loan Trusts and is collector Transworld were fined nearly $22 million for aggressively suing students for debts that were too old, they couldn’t prove they owned or they couldn’t prove were legitimate.

Federal laws mandate collectors to possess the documents that prove debts they want to collect are indeed owned by the people they’re pursuing. The Consumer Financial Protection Bureau stated that over 2000 collections lawsuits were filed in violation of the laws. Also, National Collegiate filed at least 486 collections lawsuits after the statute of limitations had expired.

If you’re struggling to pay your student loans, or if are already in default, or if you have received a lawsuit for failure to pay your student loans you may qualify to have your loans set aside. Contact The Santos Law Offices, PA to discuss your options. Call 866-661-3816 for a free consultation. This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.

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