As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

User avatar
DejaMoo
Posts: 2760
Joined: Tue Jan 25, 2011 1:19 pm
Occupation: Agent of ZOG

As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

Post #1 by DejaMoo » Mon Jul 17, 2017 5:04 pm

The financial market is deserving of less and less respect with its shoddy work and reckless lending standards. If you can't manage your business, I have no sympathy when your unprofessional actions/decisions end up costing you money.

As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

Tens of thousands of people who took out private loans to pay for college but have not been able to keep up payments may get their debts wiped away because critical paperwork is missing.

Judges have already dismissed dozens of lawsuits against former students, essentially wiping out their debt, because documents proving who owns the loans are missing. A review of court records by The New York Times shows that many other collection cases are deeply flawed, with incomplete ownership records and mass-produced documentation.

Some of the problems playing out now in the $108 billion private student loan market are reminiscent of those that arose from the subprime mortgage crisis a decade ago, when billions of dollars in subprime mortgage loans were ruled uncollectable by courts because of missing or fake documentation. And like those troubled mortgages, private student loans — which come with higher interest rates and fewer consumer protections than federal loans — are often targeted at the most vulnerable borrowers, like those attending for-profit schools.

At the center of the storm is one of the nation’s largest owners of private student loans, the National Collegiate Student Loan Trusts. It is struggling to prove in court that it has the legal paperwork showing ownership of its loans, which were originally made by banks and then sold to investors. National Collegiate’s lawyers warned in a recent legal filing: “As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.”



Dan1100
Posts: 1070
Joined: Sat Oct 18, 2014 3:41 pm

Re: As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

Post #2 by Dan1100 » Mon Jul 17, 2017 5:15 pm

Some smart lawyer has got to figure out a way to force them to prove they own the loans without the borrowers having to go into default first. Some kind of class action where you ask for a declaratory judgement that they are falsely claiming to be the owners of the loans.


"Let's say you're on trial for armed robbery. You say to the judge, 'I forgot armed robbery was illegal.' "

-Steve Martin

User avatar
ZekeB
Posts: 13305
Joined: Mon Oct 12, 2009 10:07 pm
Location: Northwest part of Semi Blue State

Re: As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

Post #3 by ZekeB » Mon Jul 17, 2017 5:48 pm

Blame Trump.




Return to “Social Issues”

Who is online

Users browsing this forum: No registered users and 1 guest