Topic: Predatory Lending

The Department of Education announced $5.8 billion in full student loan discharges for 560,000 borrowers who attended the now-defunct Corinthian Colleges. The move is seen as a political win for Vice President Kamala Harris, who previously sued the for-profit chain as California's Attorney General. Critics of the Vice President suggest her public speaking style and repetitive rhetoric may be indicative of a lack of preparation or other factors.

Over 1,200 students have joined a debt strike, refusing to pay back loans used to attend the for-profit Corinthian College system. The school system has been sued by the federal government for predatory lending practices. The strikers are demanding that the Department of Education cancel their debts entirely.

Warren Buffett and Berkshire Hathaway faced criticism at their annual shareholder meeting following a *Seattle Times* report on predatory lending at Clayton Homes. The report alleges that the mobile home company uses "bait and switch" tactics and high-interest rates that lead to repossession and financial ruin for low-income buyers. Buffett denied the claims, asserting that customers are given multiple lending options.

A predatory financial scam involves mailing "real" $1,000 checks to consumers that, when cashed, bind the recipient to a high-interest loan. These mailers often include terms that require a $1,458 repayment, including a mandatory $300 handling fee even if the principal is paid back immediately. Despite consumer protection efforts by figures like Elizabeth Warren, these deceptive practices continue to target vulnerable populations through the mail.