Home > News, Uncategorized > Student Loan Company Reaches Settlement Agreement for Deceptive Tactics

Student Loan Company Reaches Settlement Agreement for Deceptive Tactics

The New York Times reported yesterday that Goal Financial has reached a settlement with the New York attorney general, who has been investigating reports of deceptive lending tactics. 

“Goal Financial had used mailings that looked as though they came from the federal government and had offered iPods, spa gift cards and other items to lure borrowers.

Under the terms of the agreement, Goal will adopt a marketing code of conduct developed by the office of the attorney general, Andrew M. Cuomo, and will pay $350,000 to a fund maintained by his office for educating students about the financial aid process.

Eight other lenders have already agreed to abide by the code of conduct, which sets out rules for companies to follow in their direct-to-consumer marketing efforts. Seven of those companies have contributed more than $1.4 million to the attorney general’s fund.”

The Times also reports that in 2006, Goal was one of the top 10 largest providers of student debt consolidation loans.  One interesting thing about this whole mess – no report of what, if any remedies, the students who took out these loans are going to get.

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  1. November 4, 2008 at 8:35 pm

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