SBPC and NCLC File FTC Complaint Against Vemo Education for Deceptive Marketing Practices
In a complaint to the Federal Trade Commission, the Student Borrower Protection Center and the National Consumer Law Center urges the Federal Trade Commission to investigate Vemo Education, Inc. for unfair and deceptive business practices in its marketing and promotion of income share agreements (ISAs) for students.
Vemo created proprietary online “Comparison Tools” that students at partner schools like the University of Utah and Purdue University could compare its ISAs with other student loans. But the complaint asserts that Vemo’s Comparison Tools uses deceptive methods to understate the cost of its ISAs and overstate the cost of federal loan options. Vemo’s deceptive marketing scheme could steer borrowers into risky and expensive ISAs, leading to thousands of dollars in unexpected costs for some students.
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