Attorney David A. Fernandez Leads the Charge Against Giant Third-Party Student Loan Creditors

Fernandez, who has been named to the Top 100 Consumer Litigators in Texas, has handled 104 student loan cases, the majority of which went in favor of his clients over creditors, including National Collegiate Student Loan Trust, Navient, and Sallie Mae. “The result of 102 out of 104 cases defended is that my clients have not had to pay a penny to these industry giants, particularly National Collegiate Student Loan Trust, one of the nation’s largest holders of private student-loan debt,” said Fernandez.   

As for National Collegiate Student Loan Trust, in 2017 the Consumer Financial Protection Bureau took action against the company and its debt collector, Transworld Systems, Inc., for illegal student loan debt collection lawsuits. It was fined millions of dollars for “false” lawsuits, and ordered to temporarily halt collections.

These cases stem from private student loans that were sold by the original creditor, e.g. banks such as JP Morgan and Bank One, to third parties, including National Collegiate Student Loan Trust, Sallie Mae and Navient. Fernandez likens these student loan cases to the mortgage loan crisis in 2009 that caused extreme financial distress and a financial market crash. The reason for the crash was that the mortgages were bundled and securitized and sold to investors. 

“Unfortunately, and unknown to the investors was that the mortgages sold did not have a paper trail and, consequently, when the third party sued the debtor for failure to pay on the note, the third-party creditor couldn’t prove they owned the account,” noted Fernandez. “It is the same here. When National Collegiate and the other third-party student loan creditors sue, they provide the defendant debtor with a number of documents that look official and seem to suggest the plaintiff owns the account, but after  careful review of the documents, invariably there are problems regarding ownership of the account.”

When Fernandez and his firm take on one of these National Collegiate Student Loan Trust and other third-party student loan creditor cases they meticulously examine the student loan documents to determine whether the creditor can prove ownership of the account. “Although reviewing the records page by page is onerous, we do it and as you can see, we have had much success,” concluded Fernandez.  

About David A. Fernandez, Law Office of David A. Fernandez

David A. Fernandez focuses his practice on debt defense, bankruptcy, fraud, personal injury, business litigation and wrongful death. He is a member of the Texas Bar Association, Consumer Law Section of the Texas State Bar Association, and State Bar of Texas. For more information, please call 713-893-3244, or visit www.yourhoustonconsumerattorney.com. The law office is located at 2190 N. Loop West, Ste. 333, Houston, Texas 77018.

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