The Bureau filed a complaint and a proposed consent judgment against several National Collegiate Student Loan Trusts (called “NCSLTs” collectively) on September 18, 2017.
On the same day, the Bureau issued a consent order against Transworld Systems (TSI), the debt collector for several National Collegiate Student Loan Trusts.
The Bureau says that the NCSLTs filed debt collection lawsuits for private student loan debt that the companies couldn’t prove was owed or was too old to sue over, that they filed false and misleading affidavits or gave false and misleading testimony, and that they falsely claimed that affidavits were sworn before a notary.
As soon as the Bureau filed, several other groups moved to step in and say they disagreed with the proposed consent judgment.
The judge let the intervention motions go through, and on May 31, 2020, the Court denied the Bureau’s motion to approve the proposed consent judgment that was filed with the original complaint.
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The Court rejected the defendant’s request to dismiss the Bureau’s updated complaint on December 13, 2021.
On February 11, 2022, the Court sent two parts of its opinion that denied the motion to dismiss to the Third Circuit for interlocutory review and put a hold on the case.
The Third Circuit agreed to hear the appeal on April 29, 2022.
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