A group of advocacy organizations have called on the NCUA to look into potentially predatory loans being offered by for-profit colleges to college students through credit unions.
According to a media release from the Center for American Progress, the groups sent the letter to NCUA Chairman Debbie Matz Thursday and warned that loans made by federally chartered credit unions, federally insured, state chartered credit unions and CUSOs "may constitute unfair and deceptive trade practices, and threaten the credit unions' safety and soundness by posing serious credit, reputation and compliance risks."
The letter accused ITT Educational Services for allegedly developing a scheme to issue high-cost private student loans to its students through a CUSO.
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