Behind the Lucrative Assembly Line of Student Debt Lawsuits<br />But many of the cases were flawed, as the debt collector churned out mass-produced documentation based on scant verification, according to legal filings by a federal regulator<br />and a New York Times analysis of court records from hundreds of cases.<br />Transworld Systems has been one of most prolific debt collectors, filing more than 38,000 lawsuits<br />in the last three years on behalf of a single client, the National Collegiate Student Loan Trusts.<br />“We pursue litigation as a last resort for a tiny fraction of individuals — less than 1 percent of defaulted private education loan borrowers —<br />and each case is individually reviewed and prepared,” Ms. Christel said.<br />National Collegiate and Transworld “sued consumers for student loans they couldn’t prove were owed<br />and filed false and misleading affidavits in courts across the country,” said Richard Cordray, the consumer bureau’s director.<br />Navient’s student loan trusts — the investment vehicles<br />that owned her debt — had not registered to do business in the state, she claimed in her legal filings.
