Dr. Ronald P. Rogers
Support for your body's natural healing capabilities
Click here for details
Click here for information
GUN & PAWN
What's Going On
Columbia Gas Dept.
GAS LEAK or GAS SMELL
24 hrs/ 365 days
270-384-2006 or 9-1-1
Call before you dig
Directory of Churches
phone numbers and more
for churches in Adair County
Find Great Stuff in
Antiques, Help Wanted,
Autos, Real Estate,
Legal Notices, More...
On This Site
or Click Here
Cameron announces multi-state settlement for ITT PEAKS loans
By Elizabeth Kuhn
Frankfort, KY - Attorney General Daniel Cameron on Tuesday announced a multi-state settlement resulting in more than $7 million in debt relief for former ITT Technical Institute (ITT) students in Kentucky with loans from PEAKS Trust (PEAKS). The settlement resolves allegations that PEAKS, Deutsche Bank National Trust Company (DBNTC), Deutsche Bank Trust Company Delaware (DBTCB), and Deutsche Bank Trust Company Americas (DBTCA) violated consumer protection laws by offering deceptive loans to finance student tuition at ITT locations in Louisville, Lexington, and across the country.
"PEAKS Trust and Deutsche Bank entities violated consumer protection laws when they failed to explain the terms of temporary credits and coerced students into agreeing to the terms of PEAKS' private loan program," said Attorney General Cameron. "Our settlement will provide debt relief for the financial loss suffered by Kentucky ITT students as the result of PEAKS' deceptive business practices."
The Attorney General's Office of Consumer Protection, together with 47 attorneys general and the Federal Consumer Financial Protection Bureau, reached a settlement with Deutsche Bank entities and PEAKS, a private loan program affiliated with Deutsche Bank and operated by bankrupt ITT. The settlement provides $7.2 million in debt relief to Kentucky borrowers of over 1,000 PEAKS loans.
Nationally, the settlement will result in debt relief of over $330 million for approximately 35,000 borrowers with outstanding principal balances.
To protect consumers from unfair and deceptive business practices, the multi-state coalition launched an investigation into the origin and servicing of private student loans by PEAKS, their transaction parties, and their relationship with ITT.
The multi-state coalition alleged that ITT took advantage of students for financial gain by developing a plan with PEAKS to offer zero-interest temporary credits to low-income students, enabling them to cover the gap in tuition between federal student aid and the full cost of ITT tuition.
Nine months later, when students could not repay the temporary credit, ITT pressured and coerced students into accepting private loans with PEAKS by threatening to expel them if they did not accept the terms of the loan.
The coalition contends that ITT knowingly saddled students with PEAKS loans to convert uncollectible zero interest temporary credits into revenue to make ITT's financial statements more appealing to investors.
PEAKS loan default rates are projected to exceed 80 percent, due to both the high cost of the loans as well as the lack of success ITT graduates had getting jobs that earned enough to make repayment feasible.
Under the terms of the settlement, PEAKS is required to terminate all loan collection activities, to halt accepting loan payments, and to refrain from selling or transferring loans.
Within 30 days of the settlement, PEAKS, DBNTC, and DBTCA must cancel all outstanding balances of affected student loan accounts, including fees, charges, and interest. PEAKS is also required to notify loan holders by mail of their cancelled debt and ensure automatic payments are cancelled. The settlement also compels PEAKS to supply credit reporting agencies with information to update the credit scores of affected borrowers.
Students with loans from PEAKS are not required to take action to receive debt relief and should receive notices explaining their rights under the settlement. Students may direct questions regarding the settlement to PEAKS by emailing email@example.com, calling 866-747-0273, or contacting the Consumer Financial Protection Bureau by calling (855) 411-2372.
ITT filed bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT's access to federal student aid. Before closing, ITT operated campuses in Louisville, at 4420 Dixie Highway, and in Lexington, at 3000 Old Topps Road.
Attorney General Cameron was joined by attorneys general of Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming in the settlement.
This story was posted on 2020-09-15 12:57:50
Printable: this page is now automatically formatted for printing.
Have comments or corrections for this story? Use our contact form and let us know.
More articles from topic News:
KY 206 in Adair Co. to be temporarily closed Wednesday
Sunny today, high 80F
7-County Area Courts for Tue 15 Sep 2020
Governor: School districts will decide week-by-week
Cancelled - 2020 Feese Family Reunion
KYTC: Drivers reminded to slow down in work zones
Statewide coverage of Liberty flooding
TJ Health Columbia Lab Pre-Draw dates
Treats on the Town cancelled, not Halloween
Ford Motor Co. donates 2M masks to Kentucky
View even more articles in topic News
Bank of Columbia
The Best of
Local Stories of
The Greatest Generation
Order Book or e-Book
See who's celebrating
Birthdays and Anniversaries
Special Events List
Contact us: Columbia Magazine and columbiamagazine.com are published by D'Zine, Ltd., PO Box 906, Columbia, KY 42728.