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  1. What We Do
  2. Predatory Lending & Private Credit
  3. Surveillance Credit & Big Tech

Surveillance Credit & Big Tech

Banks and Tech Companies are watching you. What they see decides how much you pay to stay afloat.

As Big Banks and Big Tech use information about borrowers’ behavior when deciding who gets credit and how much credit costs, we are sounding the alarm on how this practice could drive families even further into debt—and who profits from it. Financial firms increasingly rely on AI to target customers, make offers, and set the cost of credit, working hand-in-hand with retail giants like Amazon to blur the line between finance and commerce. At the leading edge of this movement, AI models digest data about where you live, where you went to school, what you shop for, and even where you go on the internet—spitting out decisions that can be the difference between getting by and going broke.

What We’re Doing

Protect Borrowers’ research, investigations, and litigation into surveillance tactics by financial firms moves markets, drives congressional oversight, and shapes public understanding of how these firms use families’ data when deciding who gets credit and how much it costs. Highlights from this work include:

Educational Redlining

Protect Borrowers redefined the practice of “Educational Redlining”—offering the first warnings about financial firms’ use of information about where you went to school to determine whether you qualify for a mortgage, a car loan, or other kinds of credit. We warned about racial discrimination and algorithmic bias by FinTech firms and banks across the economy, partnered with civil rights groups to hold financial firms accountable, and conducted groundbreaking investigations into companies’ tactics that can raise costs or deny credit to borrowers from historically disenfranchised communities.

“Buy Now, Pay Later” Credit as shadow student debt

For more than half a century, for-profit firms have sold career training to students and workers, promising to help build skills that can unlock greater economic gains in the labor market. In the 21st century, much of this career training has moved online, financed by students and workers using credit cards, paying cash, and relying on short-term credit, including “Buy Now, Pay Later” (BNPL) loans. Fraud is pervasive across the career training market. Our investigation into these practices exposed how the largest BNPL firms offer credit to students and workers pursuing a broad range of unproven programs and obvious scams, with few safeguards or controls. 

By The Numbers

17% of Households

17% of households report using Buy Now, Pay Later credit to pay for medical or dental care, and 14% of households report using Buy Now, Pay Later credit for groceries.

more than 100

A Protect Borrowers investigation found more than 100 online career training programs that offer Buy Now, Pay Later financing to prospective students and workers. 

In The Field

In The News


  • News Clips

    Back to School: Shedding Light on Risks and Harm in the Private Student Lending and Servicing Market

    The witnesses will be: Ms. Aissa Canchola Bañez, Policy Director, Student Borrower Protection Center; Dr. Beth Akers, Senior Fellow, American Enterprise Institute; and Ms. Dalié Jiménez, Professor of Law and Director, Student Loan Law Initiative, University of California, Irvine School of Law.

    READ More


  • News Clips

    Is ‘Learn Now, Pay Later’ Just Another Student Debt Trap?

    “There’s this deep and fundamental incompatibility with buy now, pay later and education financing,” says Ben Kaufman, director of research and investigations at the Student Borrower Protection Center, a nonprofit organization that advocates for student loan borrowers. “Is there ever a worse place for that to be than higher education when there isn’t even collateral underlying the product?”

    READ More


  • News Clips

    Do AI-Powered Lending Algorithms Silently Discriminate? This Initiative Aims to Find Out

    Some legal experts and computer scientists have been more wary. Just because something is a machine doesn’t mean it’s free of human biases, they say, as the use of machine learning and artificial intelligence in other areas illustrates. In the criminal justice sphere, for example, use of this type of technology was once seen as a way to reduce bias in sentencing, but now evidence indicates that the data it pulls in reproduces already present inequality. 

    READ More


  • News Clips

    Senate Democrats raise concerns about educational redlining in student lending

    To that end, Democrats are citing a recent study by the Student Borrower Protection Center that analyzed the educational data from Upstart. Researchers searched Upstart for rates for applicants with identical credit profiles across a range of higher-education sectors, including Hispanic-serving institutions and historically black colleges and universities.

    READ More


  • News Clips

    Graduates Of Historically Black Colleges May Be Paying More For Loans: Watchdog Group

    “It really raised some alarm flags,” said Kat Welbeck, the civil rights counsel at the nonprofit Student Borrower Protection Center.

    READ More

Featured Work


  • Blogs

    Private Lenders Would Cash In on Congress’s Student Loan Changes

    Congress’s plan to dramatically shrink the federal student loan program will force students to seek expensive, high-risk private student loans—benefiting companies with troubling records of consumer abuses.

    READ More


  • Testimony & Remarks

    Testimony of Aissa Canchola Bañez Before the U.S. Senate Banking Committee

    See here to read Aissa Canchola Bañez’s September 17, 2024, testimony.

    READ More


  • Press Releases

    LDF, SBPC, and Upstart Announce Final Monitorship Report on AI and Fair Lending

    Independent monitor ends oversight of Upstart network amid impasse and offers guidance for fair lending oversight in financial services; parties warn of risk of AI-driven bias in consumer lending.

    READ More


  • Reports

    Point of Fail: How a Flood of “Buy Now, Pay Later” Student Debt is Putting Millions at Risk

    This report documents the results of an SBPC investigation finding that emerging point-of-sale lending firms, particularly those in the rapidly growing BNPL space, are driving students toward risky loan products and propping up a startling array of questionable for-profit schools in the process.

    READ More


  • Reports

    Shadow Student Debt Report

    This report examines the web of predatory schools and financial services firms that drive students to take on risky, high-cost shadow student debt.

    READ More


  • Reports

    Educational Redlining

    The SBPC’s analysis of fintech and banking products uncovered cases where a prospective borrower may be hit with thousands of dollars in additional credit costs if he or she attended a community college, an Historically Black College or University (HBCU), or an Hispanic-Serving Institution (HSI).

    READ More

EXPLORE OUR OTHER WORK

SHADOW STUDENT DEBT

We expose how predatory schools and finance companies work together to drive students to take on billions of dollars in debt—spread across credit cards, home equity loans, and other private credit—to finance their education. Once students take on these debts, they face aggressive debt collection practices, which leave borrowers in distress and drowning in debt. 

Learn More
PRIVATE STUDENT LENDING

We shed light on the unique risks and harms experienced by students and families in the growing private student loan market and push for policy change to strengthen borrowers’ rights and protections.  

Learn More
EDUCATIONAL REDLINING

As financial companies use information about families’ behavior when deciding who gets credit and how much it costs, we are sounding the alarm on how this practice treats information about where you went to school and how much education you have—practices that can increase costs or deny credit to people from historically disenfranchised communities and may violate fair lending laws.

Learn More
SCAM SCHOOLS

We work with state and federal policymakers to protect families from low-quality, predatory schools and online tech companies that leave students with worthless degrees and training and mountains of debt.

Learn More

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