Illegal Student Debt Collection Lawsuits HALTED

 

Proposed Final Judgment and Consent Order: Penalty $21.6K, Restitution $3.5K, Disgorgement $7.8K, Injunction and more!

Federal Court Action against 15 Delaware statutory trusts* with a Portfolio of 800,000 Student Loans for suing consumers illegally. (details bulleted below)

“The National Collegiate Student Loan Trusts and their debt collector sued consumers for student loans they couldn’t prove were owed and filed false and misleading affidavits in courts across the country,” said CFPB Director Richard Cordray

Securitization of Student Loans: Defendant trusts bought student debt, securitized the loans, and sold Student Debt secured notes to INVESTORS.

Trusts have no employees, and use service providers to communicate with consumers.

Debt collector (Transworld Systems, Inc.) is nationwide and its employees complete, sign and notarize sworn legal documents. Collector hires national network of LAW FIRMS.

• Defendant: *The National Collegiate Student Loan Trusts
• Plaintiff: Consumer Financial Protection Bureau

• Court:
  • U.S. District Court for the District of Delaware
  • Case 1:17-cv-01323-UNA

Proposed Final Judgment: (The National Collegiate Student Loan Trusts)

• Thorough audit of 800,000 student loans in portfolio
• Restitution to over 2000 harmed consumers, minimum $3.5 million
• Disgorge $7.8 Million to the U.S. Treasury
• Pay $7.8 Million to Civil Penalty Fund

Proposed Final Judgment & Consent Order (Trusts & Debt Collector)

• Stop filing lawsuits after expiration of statute of limitations
• Stop collections, reporting negative credit information & lawsuits without proper documentation
• Stop filing false, misleading or improperly notarized documents

Consent Order – (Transworld Systems, Inc.)

• Pay $2.5 Million to Civil Penalty Fund

 

A copy of the complaint filed in federal district court against the National Collegiate Student Loan Trusts is available at: http://files.consumerfinance.gov/f/documents/201709_cfpb_national-collegiate-student-loan-trusts_complaint.pdf

A copy of the proposed final judgment filed in federal district court against the National Collegiate Student Loan Trusts is available at: http://files.consumerfinance.gov/f/documents/201709_cfpb_national-collegiate-student-loan-trusts_proposed-consent-judgment.pdf

A copy of the consent order entered today against Transworld Systems, Inc. is available at: http://files.consumerfinance.gov/f/documents/201709_cfpb_transworld-systems_consent-order.pdf

For more information, visit consumerfinance.gov.