LCS Capital, a private student loan debt-buyer creditor continues to be one of if not the most common student loan lenders pursuing collection and litigation. In the past, Sallie Mae and Navient were the primary student loan creditors who initiated litigation and were probably the largest private student loan creditors in the country for years. Recently, we do not see any lawsuits initiated by Sallie Mae and or Navient but instead, LCS and other debt-buyers such as Credit Corp Solutions primarily buy debt from them and pursue collection and ultimately litigation. Leopold and Associates, and Relin Goldstein & Crane are the most frequent debt collection law firms that represent LCS in collection and litigation. It is possible that Sallie Mae and Navient stopped initiating litigation after multiple class action cases against them as well as large settlements with government regulators. Instead, Sallie Mae now chooses to sell defaulted debt to companies like LCS and others for pennies on the dollar.
LCS lawsuits must be defended to avoid default judgment first and foremost. A default judgment allows creditors to levy bank accounts, garnish wages, and place liens on real property. However, defending against debt-buyers like LCS is generally easier than against an original creditor such as Sallie Mae. This is primarily because LCS must prove legal standing as the rightful owner of the acquired debt. They must show a bill of sale, as well as a chain-of-title along with someone who has personal knowledge of the transfers so that hearsay can be overcome. Debt buyers frequently do not have the proper documents required to lay the foundation to have the necessary evidence entered so it is important to use these defenses against LCS and other debt-buyers.
The advantage of having the sort of legal defenses above also allows for the necessary leverage to negotiate a fair settlement that reduces the balance of the loan significantly. Debt-buyers such as LCS are usually easier to obtain more favorable settlements with. In our experience, the goal is always to try and reduce the total balance by at least 50% or more especially with debt-buyer creditors. We have had positive experiences negotiating favorable settlements with Leopold and Associates and Relin Goldstein and Crane. When defending against LCS Capital, Sallie Mae or other student loan creditors, it is important to know the necessary defenses and leverage so that the consumer can decide to either move to dismiss or to come to a settlement.