Fake paperwork for student loan collections

Wise Loan Editorial Team
By: Wise Loan Editorial Team
a paper form with electric bill charges sits on a table

Hidden from the mainstream attention in recent weeks, Missouri is grappling with a scandal involving National Collegiate Student Loan Trust, a company that asserts former students owe outstanding college loans. They claim to have acquired these accounts from various banks. However, Independence Attorney Ken McClain contends that the Trust lacks essential documentation proving the debt’s validity or the legal purchase of defaulted accounts from the banks. As a result, they are unable to legally collect on these defaulted loans.

This situation is a boon for many financially struggling former students in Missouri, as McClain argues that the Trust has flouted regulations in its pursuit of disputed debts. The missing documentation creates uncertainty, leaving the courthouse steps as the current limit of the Trust’s actions.

Drawing parallels to past subprime mortgage loan troubles, McClain suggests that this situation is similar, but former students facing lawsuits from the Trust should consult attorneys to explore their options.
Fake paperwork for student loan collections

This alarming case also raises concerns for former college students in other states. To safeguard against potentially illegitimate companies falsely claiming debts, the key lies in knowing the details of one’s loans and repayment terms. Typically, when students take out loans for education expenses, they receive documentation outlining the loan terms and the lender’s information.

If the paperwork is no longer available, alternative approaches can be employed. Checking credit reports often reveals information about loans and the reporting companies. Additionally, reaching out to the former educational institution may yield access to the loan documents, empowering individuals to address their debts responsibly.

Ultimately, understanding what is owed and to whom is crucial in protecting oneself from unwarranted claims. Knowledge in this situation is truly empowering.

The recommendations contained in this article are designed for informational purposes only.  Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.

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About the Author

Wise Loan Editorial Team

Wise Loan Editorial Team

Introducing the Wise Loan Editorial Team – a collective of experienced finance and credit professionals dedicated to enhancing your financial path. Our team boasts over three decades of expertise in the finance sector, united in our commitment to deliver reliable and practical financial insights. True to the Wise Loan ethos, our goal is to positively impact the financial well-being of our customers.

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