In a letter to the Consumer Financial Protection Bureau, the SBPC and the Open Markets Institute warn the Consumer Financial Protection Bureau (CFPB) about the risks that emerging forms of employer-driven student debt pose for workers and markets. Employers are increasingly using new types of shadow student debt such as training repayment agreements to trap workers in substandard working conditions.
The letter outlines how the CFPB can use its existing authorities to hold companies accountable for using student debt as a tool to undertake abusive labor practices.
Read the Letter: Letter to the CFPB on Protecting Workers Against Predatory Employer Loans
Read the Blog: The Nation’s Top Consumer Watchdog Can End Predatory Practices Trapping Workers in Employer-Driven Debt