In a memo, the SPBC highlights how ISA companies are unlawfully depriving students of the ability to protect themselves from fraud by leaving out of their ISA contracts language required under the Federal Trade Commission’s (FTC) “Holder Rule.” The Holder Rule is a federal regulation intended to help consumers when a defective or fraudulent product or service is purchased with credit extended directly by the seller or arranged by the seller.
With the poor educational quality of many coding bootcamps becoming more readily apparent, tens of thousands of students are at risk of being left with no legal recourse after being given false promises about their program’s quality. In addition to making clear how the Holder Rule applies to ISAs and the schools offering them, the SBPC calls on federal and state law enforcement to take action to fix this.
Read the Memo: Income Share Agreements and the FTC’s Holder Rule
Read the Blog: Coding Bootcamps Offering ISAs May Be Unlawfully Depriving Students of the Ability to Protect Themselves from Fraud