That’s scummy but it sounds like they could have achieved the arrangement “pay a share of your income wherever it comes from” without a loan.
The important part of this is a loan gives you rights as a creditor that an ordinary Accounts Payable does not. Did Lambda School’s creditors ever exercise those rights? If not, how important is the existence of a finance charge or APR or whatever? I mean, if it is only a loan for the purpose of being a product for banks, but functionally is just a, whatever, a payment plan: man, the CFPB is basically complaining about annual billing versus monthly billing discounts, bundling, and any number of psychological tricks. Scummy yes, but dramatic? No.
The important part of this is a loan gives you rights as a creditor that an ordinary Accounts Payable does not. Did Lambda School’s creditors ever exercise those rights? If not, how important is the existence of a finance charge or APR or whatever? I mean, if it is only a loan for the purpose of being a product for banks, but functionally is just a, whatever, a payment plan: man, the CFPB is basically complaining about annual billing versus monthly billing discounts, bundling, and any number of psychological tricks. Scummy yes, but dramatic? No.