Student loan scams under microscope

六月 15, 2007

The US trading watchdog has launched an investigation into alleged deceptive marketing practices used by student loan companies.

The Federal Trade Commission investigation, which was called for by the House of Representatives' Education and Labour Committee chair George Miller, will look at violation of consumer fraud and abuse and debt-collection laws. Earlier this month, the House passed the Student Loan Sunshine Act, which aims to clean up the relationship between universities and lenders in the wake of a wave of scandals and protect students from aggressive marketing tactics by lenders.

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