On July 1, 47 former students sued Make School, Inc. an operator of a for-profit coding academy, and Vemo Education, Inc. the Income Share Agreement (ISA) company, for jointly creating and offering a predatory, high-cost ISA to attend the academy. The lawsuit was filed in California Superior Court on behalf of the 47 former students by consumer protection attorney Melody Sequoia of the Sequoia Law Firm, with the support of the Student Borrower Protection Center.
According to the lawsuit, the firms actively hid the long-term cost of an ISA package that could total more than $250,000 when used to finance Make School’s two-year non-degree program and associated living expenses. Make School, which operated illegally as a for-profit college in California from 2016-2018, was ordered by a California regulator to refund all money paid by students and unwind the ISAs created by Vemo and Make School. But despite this order, the complaint filed alleges dozens of students have not had their payments refunded by Make School, Vemo continues to illegally collect on void, unenforceable debts, as well as a wide range of additional illegal conduct by both companies in violation of state and federal law.
Read the Press Release: Income Share Agreement Provider, For-Profit School Operator Sued by Dozens of Former Students for Illegal Lending and Deceptive Practices
Read the Complaint: Aguocha et al v Make School and Vemo et al Complaint
See Exhibit 1: Vemo ISA Primary Contract for Make School Tuition
See Exhibit 2: Vemo ISA Secondary Contract to Cover Make School Student Living Expenses