AUSTIN, Texas (CN) - Standard Financial Services had students at a truck driving school sign loan documents they understood as job offers, though they were not, then used illegal collection tactics, the Texas attorney general claims in court.
Texas sued Standard Financial Services on Sept. 18 in Travis County Court. The state claims the damages come to more than $100,000 and could exceed $1 million.
It claims that Standard provides financial aid to students at "a specific truck driving school that operates in Texas."
The complaint continues: "The students who received financial aid from the defendant were asked to sign a variety of documents, including a document which caused confusion amongst some of the students because they understood the document was a job offer, even though it was not.
"In addition, students who fell behind on their loan payments to the defendant received collection notices which are not allowed in Texas in the manner in which they were being used by the defendant."
Texas seeks an injunction, costs, and penalties for false, misleading or deceptive acts, and violations of the Texas Finance Code.
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