Lincoln, Nebraska – Attorney General Peterson announced today that his office has secured $1,982,088.64 in debt relief for approximately 200 former ITT Tech students in Nebraska as part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.

Nationally, the settlement will result in debt relief of about $330 million for 35,000 former ITT students who have outstanding loan balances.  The settlement is with PEAKS Trust, a private loan program run by the for-profit college and affiliated with Deutsche Bank entities. ITT filed bankruptcy in 2016, amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid. 

“As Attorney General, I am committed to protecting Nebraska students and their families from institutions that put profits ahead of people,” General Peterson said.

PEAKS was formed after the 2008 financial crisis when private sources of lending available to for-profit colleges dried up. ITT developed a plan with PEAKS to offer students temporary credit to cover the gap in tuition between federal student aid and the full cost of the education. 

The attorneys general alleged that ITT, with PEAKS’s knowledge, offered students zero-interest, short-term loans upon enrollment and later pressured those students into accepting high-interest, long-term loans offered by PEAKS. The vast majority of students later defaulted on these loans.

Under the settlement, PEAKS has agreed to cease doing business and forego collection of the outstanding loans. PEAKS will send notices to affected borrowers about the canceled debt and ensure that automatic payments are canceled.  The settlement also requires PEAKS to update credit information for affected borrowers with the credit reporting agencies.

No action is required by eligible students to receive the debt relief. Eligible students will receive further information by mail explaining their rights under the settlement.  Students may direct questions to PEAKS at customerservice@peaksloans.com or 866-747-0273, or the Consumer Financial Protection Bureau at (855) 411-2372.

In June 2019, Attorney General Peterson was part of a $168 million settlement that resulted in debt relief for 18,664 former ITT students. That agreement was with Student CU Connect CUSO, LLC, which also offered loans to finance students’ tuition at ITT Tech.

Joining Nebraska in this settlement were attorneys generals from Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

To obtain information about how to protect yourself as a consumer, file a consumer complaint, or report a scam, please visit the Nebraska Attorney General’s Office, Consumer Protection Division website at www.protectthegoodlife.nebraska.gov or call (800) 727-6432.

Lincoln – Attorney General Doug Peterson, along with a coalition of 48 attorneys general today announced a settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively “Honda”). The settlement resolves allegations Honda concealed safety issues related to defects in the frontal airbag systems installed in certain Honda and Acura vehicles sold in Nebraska and throughout the United States. The airbags posed a significant risk of rupture, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the United States alone. The airbag systems were designed and manufactured by Takata Corporation, a long-time Honda supplier, and were first installed in Honda vehicles in the 2001 model year.

“Product recalls have the power to save lives,” Attorney General Peterson said. “In this case, Honda’s inaction endangered the public, and for that, they must be held accountable.”

The participating attorneys general have alleged that Honda engineers suspected that the propellant, ammonium nitrate, in the airbags could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009.  Further, despite these concerns, Honda continued to represent to consumers that its vehicles, including its airbags, were safe.  Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles nationwide – including 62,220 vehicles in Nebraska – equipped with the suspected faulty airbag systems. Of those 62,220 recalled Honda and Acura vehicles in Nebraska, 11,219 remain unrepaired.

Under the terms of the settlement, Honda has agreed to make several changes to ensure the safety of future airbag designs while making critical improvements to risk management, quality control, supplier oversight, and whistleblower protections.  Honda also will pay the attorneys general just over $85 million. Nebraska will receive $1,088,485 of that amount.

Joining Attorney General Peterson in this settlement are the attorneys general of Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Consumers who own a Honda or Acura vehicle are strongly encouraged to visit Honda’s airbag recall website at https://hondaairbaginfo.com, or call its Customer Service toll-free number at (888) 234-2138, to see if their vehicle is subject to a recall. Consumers may also check for open recalls by going to Safercar.gov. All safety recall repairs are FREE at authorized Honda dealers.

The Nebraska Attorney General, OCIO, and the Nebraska Department of Banking join together to encourage consumers to be especially vigilant when shopping online.

In the past 30 days, the Federal Trade Commission (FTC) and, more recently, the Federal Bureau of Investigation (FBI) have both issued warnings regarding a recent increase in online shopping scams. 

According to the FBI, those affected by the scam were led to “imposter” websites that looked like legitimate businesses from social media or a search engine’s “shopping” page. The equipment purchased at a discount on these sites included gym equipment, small appliances, tools and furniture, none of which was delivered.¹

To avoid being victimized, consider the following recommendations:

• Do your homework on the seller to ensure they are legitimate.
• Type the name of the online seller into a search engine with words like “scam” or “complaint.” – FTC²
• If while browsing you get a pop-up message that asks for your financial information, don’t reply or follow the link. 
• Watch out for unfamiliar sites selling products in short supply or name brand goods at steep discounts. – FTC
• Know what the product should cost - if a price appears too good to be true, it probably is.
• Pay by credit card and contact your card company to dispute the charges if a seller doesn’t deliver your goods or they are not as promised. – FTC
• Make sure your personal and payment information is being encrypted – look for both a web address that begins with “https:” and the appearance of a closed padlock icon. 
• Do not send cash or money transfers under any circumstances.
• Confirm the online seller’s physical address and phone number in case you have questions or problems.
• Keep a record of your purchases and compare them to your bank statements.  If there is a discrepancy, report it immediately to the seller and request a correction. – Cybersecurity & Infrastructure Security Agency (CISA)³

The Nebraska Attorney General has a consumer protection website offering additional tips for protecting yourself against scams and safeguarding your personal information.

Consumers may file a consumer complaint through the Attorney General’s website at www.ProtectTheGoodLife.Nebraska.gov or send an email to ago.consumer@nebraska.gov.

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Sources:

1. Federal Bureau of Investigation (FBI): https://www.ic3.gov/media/2020/200803.aspx
2. Federal Trade Commission (FTC): https://www.ftc.gov/news-events/blogs/data-spotlight/2020/07/pandemic-purchases-lead-record-reports-unreceived-goods
3. Cybersecurity & Infrastructure Security Agency (CISA): https://us-cert.cisa.gov/ncas/tips/ST07-001

Lincoln--Attorney General Doug Peterson joined with a bipartisan coalition of 44 attorneys general, led by Louisiana Attorney General Jeff Landry and Wisconsin Attorney General Josh Kaul, in urging the U.S. Senate and House of Representatives to include Edith's Bill in COVID-19 relief legislation. This bipartisan legislation would amend the Victims of Crime Act of 1984 (VOCA) to include victims of senior fraud as eligible for reimbursement by the Crime Victims Fund for states that provide compensation to victims. Scam artists know that seniors are especially at risk from COVID-19 and they are targeting seniors who are isolated at home, separated from families and support networks.

“Now, more than ever, it is important to provide additional protection for our elderly family members and neighbors, to not only warn seniors about engaging with unknown solicitors but to take a step in providing compensation to defrauded seniors,” stated Attorney General Doug Peterson.

Edith’s Bill, or the Edith Shorougian Senior Victims of Fraud Compensation Act (S. 3487/H.R. 7620) will also amend VOCA so that penalties and fines from deferred prosecution and non-prosecution agreements, which can include white collar criminal conduct against seniors, are deposited into the Crime Victims Fund. The bill is being led by Sen. Baldwin of Wisconsin and Sen. Cassidy of Louisiana in the Senate and Rep. Bonamici of Oregon and Rep. King of New York in the House, who both co-chair the Elder Justice Caucus.
Across all states, there has been a surge in COVID-19 scams targeting vulnerable seniors. The U.S. Department of Health and Human Services Office of Inspector General has warned that fraudsters “are offering COVID-19 tests to Medicare beneficiaries in exchange for personal details, including Medicare information.”[1] This is unfortunately, just one of many COVID-19 scams targeting seniors. 

Even after the pandemic, it is widely expected that seniors will continue to be targeted by fraudsters. By using this legislation to add senior fraud as an eligible reimbursement expense under VOCA, states will be able to help victims receive the financial relief they deserve. States would be incentivized but not mandated by this legislation to provide compensation to victims of senior fraud. 

LINCOLN – Attorney General Doug Peterson filed a Complaint today in the District Court of Douglas County against Omaha Stem Cells, LLC, Regenerative Medicine and Anti-Aging Institutes of Omaha, LLC, Stem Cell Centers, LLC and Travis and Emily Autor (collectively “the Defendants”).