Chloe Meltzer | July 21, 2022
Summary: Are you being sued by AES NCT? Not sure what to do next? Find out how to respond to a debt collection lawsuit and win in court.
If you have been served with a lawsuit from the private student loan lender known as the National Collegiate Trust, then you are not alone. Many students and graduates are being taken to court by the NCT for not paying their student loans. For private student loan borrowers, this is a serious problem. With various measures being taken by institutions such as the NCT, lawsuits are extremely common.
If you are looking to defend yourself in a lawsuit, then settlement before the court case is typically the only option if you have already defaulted on an NCT loan. Despite this, once the lawsuit goes to court, NCT is often beat because there are many holes in their chain of paperwork.
The NCT is notoriously big on filing lawsuits, and they do so very regularly. Unfortunately, this situation gets worse whe you realize that most people are not aware of the situation and what they need to do to easily win their case. The most important thing to know is that you need to show up in court. If you do not, then the NCT will win a default judgment against you, which opens the door to wage garnishments, liens, and bank account levies.
The NCT is one of the strongest private lenders in the United States. The NCT consists of trusts owned by Goal Structured Solutions. This company is closely affiliated with Turnstile Capital Management.
This means that the NCT has been operating very covertly for many years. Many people being sued for debt by the NCT will search out a phone number or place to contact the NCT, but will not be able to find one. This is because the NCT is simply a trust owned by GSL. You can call GSL, but you may not know this before it is too late.
In addition, NCT is one of the largest debt buyers in the private student loan industry. This is typically more common in cases of credit card debt, and not as common when it comes to student loans. The NCT often purchases loan portfolios at once for a low price and then attempts to collect on all of them.
The first step in beating AES NCT in court is to understand what is going to happen during your case. The first step is typically a phone call or letter notifying you of the debt. This often occurs when a debt is 180 days past due.
After five days of contact, you should expect a debt validation letter in the mail. This will include the name of the creditor, as well as how to dispute the debt if you want to. Legally you need to receive this in the mail, and if you do not, you may be able to counter sue.
If you do not believe that you owe the debt you can ask for this proof. Regardless, you need to respond to AES NCT in a legal Answer. You will have a few options at this point, but you need to show up for the court date when assigned. If you fail to appear, the courts will rule in favor of the debt collector.
After you can confirm that you are being sued by the NCT, and it is not a scam, you will need to legally respond. This is essential because ignoring it will only make matters worse.
Debt collectors are most often third-party agencies hired by the original creditor. Although this is not always the case when it comes to student loans, oftentimes the case is not fully legitimate, or they do not have the chain of paperwork to back it up.
Reasons to challenge a lawsuit include:
If you're being sued for debt and you believe it is not a valid lawsuit in any way, you can file a response and ask for a validation letter including:
As a consumer, you have rights under the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act, and Truth in Lending Act. Under the FDCPA, debt collectors may not contact you at odd hours (outside the hours of 8 a.m. and 9 p.m.), harass you in any way, using profanity, threatening to take your property without the legal right to do so, contact you after being represented by a lawyer, and make any type of fraudulent claims.
In many cases, you might look to see if you should accept the judgment or not. You can decide to do so but settle out of court, which is typically a better option if you cannot find a defense to have the lawsuit dropped. This often allows you to settle for a much lower amount than your original total. One way to decrease this total is by threatening to file bankruptcy. Although you do not need to necessarily file, threatening it will push AES NCT to settle with you.
You can also see if you are judgment proof. This means that you make so little money that your wages cannot be garnished legally. If you mainly get your income from social security, this cannot be garnished as well.
The final choice you might make is to file for bankruptcy. Although this should be a last resort, if you are struggling financially in other ways as well, this is an option. This can help you to start fresh without any debt, but it will follow you for the rest of your life. It may make it difficult for you to obtain loans or housing in the future. Whatever choice you make, explore all options and look into all affirmative defenses before choosing bankruptcy as a last resort.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
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Being sued by a different debt collector? We're making guides on how to beat each one.
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