The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Climb Credit and its largest shareholder, 1/0, accusing the student lender of making false claims about job placement rates and salaries at partner schools. Climb Credit allegedly induced students into loans based on these misrepresentations, failing to vet schools as promised.
The lawsuit seeks to stop the misleading practices, secure redress for affected students, and impose a civil money penalty. Climb Credit has not yet responded to the claims.