All Consuming - Financial Litigation Insights: Issue 6, September 2020

Morrisey, Other AGs Reach $330 Million Agreement with Student Loan Company -

"West Virginia Attorney General Patrick Morrisey and 47 other attorneys general have reached a $330 million, multistate agreement with a student loan company accused of pressuring students into accepting loans they could not pay back."

Why this is important: ITT Technical Institute was a for-profit technical college that had 100+ locations across numerous states. PEAKS Trust 2009-1 provided a “temporary credit” in the form of a short-term loan payable nine months after issuance to allegedly meet the educational funding needs of ITT’s students. The Attorneys General alleged this funding was provided even though PEAKS “knew or should have known the students would not be able to repay the loan when it became due.” Students were then allegedly pressured into accepting PEAKS loans when their initial “credit” came due and they were unable to pay...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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