ITT Education Services Students Win Class Status on RICO Claims

Jan. 12, 2023, 5:55 PM UTC

Former students of ITT Education Services Inc. may proceed as a class with racketeering claims against the loan servicer and collection agency for the defunct for-profit educational company.

The plaintiffs allege that ITT created a sham private student loan program called Program for Education Access and Knowledge (PEAKS). They name Vervent Inc., the loan servicer for the PEAKS program, and Activate Financial LLC, an in-house collection agency owned by Vervent, as defendants.

Judge Dana M. Sabraw of the US District Court for the Southern District of California granted certification of a nationwide class of borrowers who made a loan payment ...

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