Frequently Asked Questions

You received a notice because Defendants’ records indicate that you may be a member of the Class: the individuals named as Plaintiffs in this lawsuit filed it on behalf of themselves and the Class in the United States District Court for the Southern District of New York. The Court has allowed, or “certified” this lawsuit as a class action on behalf of the following people:

All persons who have been sued in New York State court debt collection lawsuits from November 1, 2012 through February 27, 2018, where the plaintiff was one of the Trust Defendants, with TSI-NCO acting as servicing agent and Forster & Garbus as plaintiff’s counsel, and where a default judgment was obtained, but excluding any individual who appeared in state court to defend themselves and against whom the Trust Defendant named as plaintiff was awarded a judgment on the merits.

The notice explains that the Court has certified a class action lawsuit that may affect potential class members.  Class members have legal rights and options that they may exercise before the Court holds a trial.  The trial would be to decide whether the claims being made against Defendants, on the class members behalf, are correct.  The title (or “case caption”) of this federal lawsuit is: Seaman, et al. v. National Collegiate Student Loan Trust 007-2, et al., Case No. 1:18-cv-1781-PGG-BCM (S.D.N.Y.).

This lawsuit alleges that Defendants fraudulently obtained default judgments against individuals in New York state court debt collection lawsuits by falsely representing that they could prove individuals owed them money.  The lawsuit asserts that Defendants violated the Fair Debt Collection Practices Act (“FDCPA”), 15. U.S.C. § 1692, New York’s General Business Law § 349 (“GBL”), and New York’s Judiciary Law § 487 (“JDL”).  Defendants dispute these allegations.

In this class action lawsuit, the “Class Representatives” (in this case Katherine Seaman, Mary Re Seaman, Sandra Tabar, Christina Bifulco, Francis Butry, and Cori Frauenhofer) filed the lawsuit as “Named Plaintiffs” on behalf of other people who have similar claims.  All these people together are a “Class” or “Class Members.” All Class Members became Plaintiffs along with the Named Plaintiffs when the Court certified the Class (essentially, the Court agreed that there is a large group of people potentially affected by Defendants’ actions as alleged).  The Court will resolve the issues for everyone in the Class, except for those people who choose to exclude themselves from the Class.

The Court decided that this lawsuit can be a class action and move towards a trial because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal courts.  More information about why the Court is allowing this lawsuit to be a class action is in the Court’s Order Certifying the Class, which is available here.

The Trust Defendants purport to be owners by assignment of billions of dollars’ worth of private student loans originated by large banks in the early to mid-2000s.  Defendant TSI-NCO, a national debt collector, contracts with regional debt collectors throughout the country to collect on student loan debt allegedly owed to the Trusts.  One of TSI-NCO’s regional debt collectors is Defendant Forster, a New York law firm.

Defendants have informed Plaintiffs that class members may have been sued in a New York state court debt collection lawsuit that Forster, retained by the Trusts via TSI-NCO, filed on behalf of the Trusts, and that ended in a default judgment.

This lawsuit accuses Defendants of fraudulently obtaining their default judgment against class members by falsely representing that they could prove that they owed them money.  You can read Plaintiffs’ Class Action Complaint available here.

Defendants deny they did anything wrong.  Defendants’ Answers to the Complaint is also available here.

The Court has not decided whether Plaintiffs or Defendants are correct.  By establishing the Class and issuing this notice, the Court is not suggesting that Plaintiffs will win or lose this case.  Plaintiffs must prove their claims at proceedings yet to be scheduled by the Court.  (See FAQ 17-19 for information regarding the trial.)

No money or benefits are available now because the Court has not yet decided whether Defendants did anything wrong, and the two sides have not settled the case.  There is no guarantee that money or benefits ever will be obtained for the Class.  If they are, class members will be notified about this later.

Defendants have searched their business records pursuant to the Court’s instructions and have identified class members as someone who may have been sued by Defendants in a New York state court collection lawsuit ending in default judgment, and so fit the Class definition, which is repeated in FAQ 9.

Again, subject to the exclusions below, the Class here is on behalf of all persons who have been sued in New York State court debt collection lawsuits from November 1, 2012 through February 27, 2018, where the plaintiff was one of the Trust Defendants, with TSI-NCO acting as servicing agent and Forster & Garbus as plaintiff’s counsel, and where a default judgment was obtained, but excluding any individual who appeared in state court to defend themselves and against whom the Trust Defendant named as plaintiff was awarded a judgment on the merits.

The Court has ordered excluded from this Class any individual who (i) appeared and litigated in state court after entry of the default judgment, (ii) succeeded in setting aside the default, but (iii) thereafter had judgment entered against him or her after dispositive motion practice or trial.

If it is determined that any of these factors apply to you, you may be excluded from participating in the lawsuit.

You have to decide whether to stay in the Class or ask to be excluded before the trial, and you have to decide this now.

Class members don’t have to do anything now if they want to keep the possibility of getting money or benefits from this lawsuit. By doing nothing they are staying in the Class.  If they stay in the Class and Named Plaintiffs obtain money or benefits, either as a result of the trial or a settlement, they will be notified about distribution (or how to ask to be excluded from any settlement).

Keep in mind that if class members do nothing now, regardless of whether Named Plaintiffs win or lose the trial, they will not be able to sue, or continue to sue, Defendants—as part of any other lawsuit—about the same legal claims that are the subject of this lawsuit. They will also be legally bound by all of the Orders the Court issues and judgments the Court makes in this class action.

If class members already have their own lawsuit against Defendants based on the same alleged conduct, and want to continue with it, they need to ask to be excluded from the Class.  If they exclude themselves from the Class and thus are removed from the Class—sometimes called “opting out” of the Class—they won’t get any money or benefits from this lawsuit even if Plaintiffs obtain them as a result of the trial or from any settlement between Defendants and Plaintiffs.  However, class members may then be able to sue or continue to sue defendants independently.  If they exclude themselves, they will not be legally bound by the Court’s judgments in this class action case.

If they start their own lawsuit against Defendants, they will have to hire and pay their own lawyer for that lawsuit, and willll have to prove their claims.  If they do exclude themselves so they can start or continue their own lawsuit against Defendants, they should talk to their own lawyer soon, because their claims may be subject to a statute of limitations.

To ask to be excluded, class members must send an “Exclusion Request” in the form of a letter sent by mail, stating that they want to be excluded from Seaman, et al. v. National Collegiate Student Loan Trust 2007-2, et al.  Be sure to include their name and address, and sign the letter.  Class members must mail their Exclusion Request postmarked by March 12, 2025, to: Seaman v. National Collegiate Student Loan Trust Administrator, P.O. Box 301130, Los Angeles, CA 90030-1130. Class members may also get an Exclusion Request available here.

If you do not opt out, you do not need to hire your own lawyer, because Class Counsel is working on your behalf and there is no need for you to pay them as the case continues.  But, if you want your own lawyer, you will have to pay that lawyer all on your own.

If Class Counsel gets money or benefits for the Class, they will ask the Court for an award of fees and reimbursement of expenses. Class members won’t have to pay these fees and expenses from their own pocket.  If the Court grants Class Counsel’s request, the fees and expenses would be either deducted from any money obtained for the Class, if any, or paid separately by Defendants.

This federal lawsuit will not undo the Trust’s default judgment against class members in New York state court.  Even if it succeeds on all claim for the Class, it will not undo any default judgment that Defendants obtained against you.  Class Counsel are not authorized to assist Class Members with currently ongoing events connected to a default judgment, such as garnishment.  If you have questions about the existence of the default judgment against you, or about an event connected to it, those questions must be directed to an attorney other than Class Counsel who is licensed in New York State.  Additional information about state law is provided to you and available here.

The Court has not yet scheduled a trial to decide who is right in this case.

As long as the case isn’t resolved by a settlement or otherwise, Class Counsel would have to prove Plaintiffs’ claims at a trial. Prior to trial, the two sides are likely to file pre-trial motions with the Court about the evidence and the claims, including under Federal Rule of Civil Procedure 56 (also known as “summary judgment”).

There is no guarantee that Plaintiffs will be successful in this lawsuit going forward, or that they will get any money for the Class.

You do not need to attend the trial or participate in any pre-trial proceedings or motion practice, if or when any of these take place. Class Counsel will present the case for Plaintiffs, and Defendants will present the defenses.  You or your own lawyer are welcome to come at your own expense.

If Plaintiffs obtain money or benefits as a result of trial or a settlement, and you have not excluded yourself from the Class, you will be notified about it at that time.  We do not know how long this would take if it occurs, which, again, cannot be guaranteed.

Visit the Case Documents Tab, where you will find the Court’s Order Certifying the Class, the Complaint that Plaintiffs submitted, Defendants’ Answers to the Complaint, as well as an Exclusion Request form.  You may also write to: Seaman v. National Collegiate Student Loan Trust Administrator, P.O. Box 301130, Los Angeles, CA 90030-1130.