Private student loans are the most unfavorable form of debt due to their lack of formal income. Students cannot obtain a bankruptcy discharge without undergoing costly litigation and proving hardship.
The Collegiate Loans Trust holds an enormous amount of private student loans and has recently filed numerous lawsuits against delinquent borrowers. The suits are similar to primary credit card cases and encounter the same issues.
Collegiate Loans Trust is constantly harassing one of the most frequent complaints from students. This can be frustrating for the debtor and time-wasting for the debt collector. Debt collectors should provide evidence for why they are calling.
What is Collegiate Loans?
Also known as National Collegiate Student Loan Trust, Collegiate Loans is a company that owns various Delaware trusts, which amalgamate multiple private student loans. These loans are usually acquired from private lenders like:
- Bank of America
- Citizens Bank
- JPMorgan Chase
Subsequently, the trusts sell bonds that are supported by these student loans. It is important to note that the Collegiate Loans Trust is not a lending entity. Therefore, you may need clarification upon receiving a notification from them stating that you are required to make a payment or are in default.
Contact Details
Collegiate Loans Trust
Wilmington Trust Company
1100 N Market St
https://www.wilmingtontrust.com/wtcom/
Collegiate Loans Trust
402 W Broadway Suite 2000
San Diego, CA 92101
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Collegiate Loans History
Collegiate Loans Trust is a company that was established in 2001 to own multiple trusts that hold private student loans. Banks and other financial institutions originated these student loans and then sold them to the trusts, issuing bonds backed by the loans.
Over time, Collegiate Loans Trust became one of the largest owners of private student loans in the United States, holding over 800,000 loans with a total balance of over $12 billion.
Despite facing some challenges, Collegiate Loans Trust continues to operate and service its existing loans.
Collegiate Loans Reviews
Collegiate Loans Trust has faced criticism from consumer advocates and borrowers who argue that it has used unfair and deceptive practices in its collection efforts. According to CFPB, creditors sometimes adhere to the safeguards given to the consumers who have discharged their debts through bankruptcy.
In some cases, Collegiate Loans Trust needs to pay more attention to industry standards for credit reporting, resulting in low credit scores for consumers and various adverse effects such as higher interest rates.
In other instances, Collegiate Loans Trust has tried to collect on student loan debt already discharged through bankruptcy. Collegiate Loans Trust has faced criticism for filing many lawsuits, relying on dubious documentation for verification.
Reviews
Students nationwide have faced lawsuits for debts they no longer owe, from companies they never borrowed from, or from creditors who lack the necessary legal standing to sue. In essence, debt collectors representing Collegiate Loans Trust fail to demonstrate that borrowers owed them any money, yet they still take legal action against unsuspecting individuals.
BBB Reviews
Collegiate Loans Trust is not BBB accredited and is not rated by the Better Business Bureau. However, there have been 12 complaints in the past 3 years.
Other Reviews
Collegiate Loans Trust, one of the largest holders of private student-loan debt, has gained a reputation for using aggressive and unscrupulous tactics to collect on these loans. Two years ago, this agency was in legal trouble when it aggressively pursued borrowers for legally uncollectable loans.
The CFPB took action against Collegiate Loans Trust in 2017 for suing student loan borrowers for loans that either passed the deadline for collection or for which they could not prove ownership. As a consumer, you have leverage and can fight back against Collegiate Loans Trust collection tactics. You can understand your rights by going through the Fair Debt Collection Practices Act. Take steps to reclaim your power and protect your rights in this situation.