Deceptive ISA Practices Clause Samples

Deceptive ISA Practices. ISA providers frequently market ISAs as low-cost financial products that are not “loans” that do not create “debt” despite functioning essentially as a consumer loan that creates consumer debt. ISA contracts used at the coding bootcamp Lambda School (now rebranded as the Bloom Institute of Technology17), for example, stated “THIS IS NOT A LOAN” below summaries of monthly payments.18 However, ISA borrowers often face the same tax treatment for discharges as federal student loan providers. A federal student loan borrower who discharges their loans at the end of an income-driven repayment plan must report the discharged amount as income for 16 ▇▇▇▇▇▇ and ▇▇▇▇▇▇ at 12.‌ 17 Bloom Institute of Technology, ▇▇▇▇▇://▇▇▇.▇▇▇▇▇▇▇▇▇.▇▇▇/ (last visited Dec. 16, 2021) 18 Lambda, Income Share Agreement, Lambda School ISA (20200413).pdf (last visited Dec. 16, 2021). tax purposes. Similarly, an ISA borrower who fails to repay the total amount financed must report the difference as income.19 ISA providers can also often easily confuse consumers as to how they calculate an individual’s “income.” A provider can require a borrower to pay a share of unemployment compensation and bury that obligation within the fine print of a contract. Additionally, agreements typically calculate an individual's monthly obligation based on their gross pre-tax income. This is substantially different from federal income-driven repayment loans that consider only discretionary income, a measure that subtracts out a baseline amount of income meant to be allocated toward basic needs. Confusion surrounding the nuances of ISAs could create untenable conditions for consumers through the “stacking” effect of combining private and federal loans and yield exceptionally high monthly payments. When combined with regular federal student loans, ▇▇▇’s can burden student borrowers with monthly payments as high as 40 percent of pre- tax income for student borrowers who lack the basic protections federal law gives to federal loan borrowers.20 ISA providers frequently make use of calculators, “comparison tools,” and “future earnings” statistics to market their products. These are easily manipulated or flawed.21 Service providers’ calculators often do not include a clear APR calculation or disclosure of potential prepayment penalties. However, this is not immediately clear to consumers. 19 Purdue Univ., ISA Sample Contract (Academic Year), ▇▇▇▇▇://▇▇▇.▇▇▇▇▇▇.▇▇▇/backaboiler/disclosure/contract.html (last visited Nov....
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Related to Deceptive ISA Practices

  • Unfair Labor Practices The Grantee shall comply with the Employers Engaging in Unfair Labor Practices Act, 1980 PA 278, as amended, MCL 423.321 et seq.

  • FAIR PRACTICES The Union agrees to maintain its eligibility to represent all employees by continuing to admit persons to membership without discrimination on the basis of race, creed, color, national origin, sex or marital status and to represent equally all employees without regard to membership or participation in, or association with the activities of any employee organization. The Board agrees to continue its policy of not discriminating against any employee on the basis of race, creed, color, national origin, sex, marital status or membership or participation in, or association with the activities of, any employee organization.

  • Collusive practices We hereby certify and confirm that the tender is genuine, non-collusive and made with the intention of accepting the contract if awarded. To this effect we have signed the “Certificate of Independent tender Determination” attached below.

  • Data Practices Supplier and Sourcewell acknowledge Sourcewell is subject to the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13. As it applies to all data created and maintained in performance of this Agreement, Supplier may be subject to the requirements of this chapter.

  • Credit Reporting; Gramm-Leach-Bliley Act (a) With respect to each Mortgage Loan, each Se▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇ully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its borrower credit files to Equifax, Experian and TransUnion Credit Information Company (three of the credit repositories), on a monthly basis. (b) Each Servicer shall comply with Title V of the Gramm-Leach-Bliley Act of 1999 and all applicable regulations promulgat▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ating to the Mortgage Loans required to be serviced by it and the related borrowers and shall provide all required notices thereunder.