Behind the lucrative assembly line of student debt suits
A New York State Supreme Court judge ruled differently last year on a separate case that raised the same defense. He dismissed a motion to dismiss and stated that the standing of the Navient trusts should be considered at trial. Do you want a conversation? Yes. How is it going? Me dai cest excéllant, it is hot.
Patricia Nash Christel, spokesperson for Navient, declined to comment on specific cases.
“We pursue litigation as a last resort for a tiny fraction of individuals – less than 1% of defaulting private education loan borrowers – and each case is individually reviewed and prepared,” Ms. Christel said.
A fight is brewing
The Office of Consumer Affairs’ action against National Collegiate and Transworld was intended to ward off aggressive litigants.
Under the terms of the settlement, National Collegiate would be prohibited from collecting judgments that its trusts have already won, or engaging in new business, until it has completed an audit of the documents underlying each. of its 800,000 loans – an expensive and time-consuming operation. consumer labor.
But the deal, reached in September, may be falling apart.
The settlement requires court approval, usually a stamp when both parties have agreed to the terms. The case went to the United States District Court in Delaware.
The beneficial owner of the trusts, Donald Uderitz, founder of Vantage Capital Group, a private equity firm in Delray Beach, Florida, has approved the deal with the consumer office. In the days following its announcement, however, seven other parties involved or working for the trusts, including Transworld, filed motions asking the court to dismiss it.
(The separate settlement Transworld reached with the consumer office did not need court approval. It has already come into effect, although it does not prevent Transworld from hiring law firms. to file debt collection cases.)