Attorney General Lynn Fitch announced a settlment agreement with ITT Tech on September 15. A copy of her announcement is below:
Today, I secured an agreement to obtain $1,763,071.28 in debt relief for former ITT Tech students in Madison, Mississippi as part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.
Nationally, the settlement will result in debt relief of about $330 million for 35,000 borrowers who have outstanding principal balances.
Today’s settlement will deliver money directly into the pockets of students targeted by PEAKS Trust's predatory actions, many of whom continue to suffer the economic impacts of astronomical interest rates.
This settlement should serve as a warning to other bad actors who take advantage of financially vulnerable Mississippians. My office will continue to seek justice, ensuring there are severe consequences for illegal actions against consumers in our state.
Under the settlement, PEAKS has agreed that it will forgo collection of the outstanding loans and cease doing business. PEAKS will send notices to borrowers about the cancelled debt and ensure that automatic payments are cancelled. The settlement also requires PEAKS to supply credit reporting agencies with information to update credit information for affected borrowers.
Students will need to do nothing to receive the debt relief. The notices will explain their rights under the settlement. Students may direct questions to PEAKS at email@example.com or 866-747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.
You can read more about settlement here.