Training Repayment Agreement Provisions (TRAPs)

The Student Borrower Protection Center, a student loan borrower advocacy organization, estimates that these agreements are now so widespread that major employers in areas of the labor market that employ more than one-third of private sector workers are using them. Consumer advocates worry they put workers at risk of being in debt to their former employers and facing collection action and its repercussions, including wage garnishment and a ding to their credit score.

In a class-action lawsuit filed in the Superior Court of the State of California, plaintiff Breann Scally alleges that though PetSmart “promises aspiring groomers free, paid training,” the company is illegally saddling staffers with debt by forcing some to pay back thousands in training costs as part of a repayment stipulation.