The Student Borrower Protection Center and the National Consumer Law Center on Monday filed an official complaint with the Federal Trade Commission, calling on the agency to investigate Vemo’s business practices. The groups say Vemo engages in deceptive marketing that could result in college students paying thousands of dollars in unexpected costs, and they are asking the FTC to order restitution for borrowers harmed by these alleged practices.
Vemo brokers contracts for income-share agreements, commonly called ISAs, which have been hailed as an alternative to private student loans and federal Parent Plus loans. But a platform Vemo created to compare the options relies on false assumptions, according to the complaint.
Consumer groups claim the comparison tools use misleading information about the