Student Loan Lender Sued for Deceiving Borrowers

Climb Credit accused of using deceptive practices to lure borrowers

A private student loan lender is facing allegations it used deceptive and misleading claims to lure borrowers to take out loans.

The Consumer Financial Protection Bureau (CFPB) is suing Climb Credit, alleging the lender made false or unsubstantiated claims about partner schools where students were encouraged to use loan proceeds.

The lawsuit claims that Climb represented to student borrowers that it had vetted potential schools for job placement rate and average starting salaries. The reality, according to CFPB, is that Climb either ignored bad outcomes of partner schools or failed to analyze them at all.

“Climb Credit used false promises and outright lies to lure borrowers into loans for vocational programs,” said CFPB Director Rohit Chopra. “Tens of thousands of students may have been impacted by Climb’s actions, and the CFPB is suing Climb and its investor overlord to halt these activities and get relief for students.”

Climb Credit, Inc. is a Delaware corporation headquartered in Las Vegas, Nevada that markets private student loans. Climb Credit was headquartered in New York until 2022 and it maintains significant operations there. The CFPB’s lawsuit also names wholly owned subsidiaries Climb Investco and Climb GS Loan Fund. The investigation also uncovered facts to charge the company’s controlling investor 1/0 Holdco LLC, and 1/0 Capital.

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