PhotoThe New York attorney general, Eric T. Schneiderman, has opened an investigation into the collection practices of the National Collegiate Student Loan Trusts, one of the nation’s largest owners of private student loan debt, according to Mr. Schneiderman’s office. The attorney general’s office sent subpoenas on Wednesday asking for information on every collection lawsuit filed by National Collegiate’s trusts against New York residents. National Collegiate’s trusts have aggressively pursued in court borrowers who fall behind on their student loan payments. Judges around the country have dismissed dozens of cases filed by National Collegiate’s trusts because of flawed or missing paperwork. The Times’s news story is “deeply concerning” he said, but it is “unfortunately consistent with the increasingly cynical and freewheeling culture we’ve seen take hold across the student loan industry.”

Source: New York Times July 19, 2017 19:49 UTC