W.Va. Attorney General Patrick Morrisey reached a $330 million, multi-state agreement with a student loan company

W.Va. AG Morrisey
W.Va. AG Morrisey(Zach Shrivers)
Published: Sep. 15, 2020 at 4:04 PM EDT
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CHARLESTON, W.Va. — W.Va. Attorney General Patrick Morrisey joined an alliance of 48 attorneys general in reaching a $330 million, multi-state agreement with a student loan company accused of pressuring students into accepting loans they could not pay back, according to a press release.

This agreement erases $1,085,726 in debt for 138 former students of ITT Technical Institute in W.Va. ITT Technical Institute, is a now-bankrupt for-profit college.

“Students seeking to expand their educational and career opportunities shouldn’t be preyed upon by loan companies,” Attorney General Morrisey said. “This type of unlawful conduct must be stopped so consumers are not deceived.”

ITT developed a plan with PEAKS, which was created in 2009 to purchase, own and manage certain loans offered to students enrolled at ITT Technical Institute.

The agreement requires PEAKS to cease all collection activities and stop accepting payments from victimized consumers. PEAKS also cannot sell, transfer or assign any loan.

West Virginia joined the agreement with Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.

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