The student loan company was accused of violating consumer protection laws

By Truman Lewis of ConsumerAffairs

• Earnest Operations LLC agrees to pay $2.5 million and reform lending practices.

• Massachusetts AG alleges AI-driven loan decisions harmed Black, Hispanic, and non-citizen applicants.

• Settlement mandates compliance measures and bans discriminatory algorithmic rules.

Massachusetts Attorney General Andrea Joy Campbell has secured a $2.5 million settlement with Earnest Operations LLC, a Delaware-based student loan company, over allegations that its lending practices driven by artificial intelligence (AI) discriminated against marginalized borrowers and violated consumer protection and fair lending laws.

The settlement, filed in Suffolk County Superior Court as an assurance of discontinuance, addresses what the AGs office described as systemic failures in Earnests underwriting process, including the use of AI models that allegedly produced disparate impacts on Black, Hispanic, and non-citizen borrowers.

AI models under scrutiny

According to the Attorney Generals investigation, Earnest used algorithmic models to make critical decisions about loan eligibility, pricing, and terms. However, the company failed to test for discriminatory outcomes and relied on data inputs and training methods that introduced bias amplifying existing inequities in the lending process.

Earnests failure to comply with consumer protection and fair lending laws, including through its AI models, unfairly put historically marginalized student borrowers at risk of being denied loans or receiving unfavorable loan terms, AG Campbell said in a statement.

One key point of contention was the companys use of the federal Cohort Default Rate (CDR) a statistic reflecting average loan defaults at individual schools as an input variable in its algorithms. The AGs office said this disproportionately penalized applicants who attended minority-serving institutions, including historically Black colleges and universities.

Other alleged violations

In addition to algorithmic bias, the AG alleged other unfair practices:

• Use of a Knockout Rule to automatically deny loans based on immigration status.

• Arbitrary human assessments that led to inconsistent and opaque decisions.

• Inaccurate adverse action notices that misinformed applicants about credit decisions.

• A lack of internal compliance infrastructure to oversee fair lending risks.

Earnest denied all allegations and maintained that it did not violate state or federal law. The company said it agreed to the settlement solely to resolve the matter without prolonged litigation.

Reforms mandated in settlement

Under the terms of the agreement, Earnest must:

• Pay $2.5 million to the state of Massachusetts.

• Cease use of the Cohort Default Rate and immigration-based Knockout Rule in its loan decision models.

• Establish a robust corporate governance structure to monitor AI use.

• Develop written policies for responsible, legally compliant AI deployment.

• Regularly report compliance metrics to the AGs office.

The settlement marks one of the first state-level enforcement actions targeting AI-related bias in financial services, setting a precedent for how regulators may respond to emerging technologies that impact consumer rights.

This case sends a strong message, Campbell said, that technology, no matter how advanced, cannot be used as an excuse to sidestep civil rights and consumer protections.

Research shows that small boosts in walking speed may improve fitness and preserve independence in older adults

• Older adults who walked just a bit faster improved their aerobic capacity and maintained function over time.

• The study suggests even modest increases in walking pace just 5% can make a difference.

• This approach may be safer and more sustainable than high-intensity workouts for older adults.
  

Walking may be one of the simplest ways to stay active but for older adults, a slight tweak in pace might unlock even greater benefits.

A new study led by researchers at the University of Chicago Medicine suggests that modest increases in walking speed could help aging adults improve cardiovascular fitness, maintain functional independence, and potentially reduce health risks associated with aging.

"Physical activity has widespread, multisystem benefits, researcher David Conroy, Ph.D., said in a news release.

It increases longevity, reduces risk for many common chronic diseases such as many cancers, cardiovascular disease, and diabetes. It improves brain health, improves cognitive function, and reduces risk for Alzheimer's disease and related dementias. It enhances mental health by reducing anxiety and depression, improves bone health, and so on. The most noticeable short-term impacts typically involve feeling more pleasant and revitalized, sleeping better, and thinking more clearly."

The study

One of the biggest metrics the researchers were interested in evaluating was how walking speed affected frailty a medical condition in older adults that increases vulnerability to everyday stresses.

The researchers explained that the criteria for the study were as follows:

• Permanent residents in the retirement community

• 60 years of age

• Prefrail or frail according to the Survey of Health, Ageing, and Retirement in Europe Frailty Instrument (SHARE-FI)

• Capable of walking at least 10 feet with moderate assistance (

For the study, participants in retirement communities were assigned to different walking groups a casual speed walking group and a high-intensity walking speed group.

Over the course of four months, the participants were involved in daily walking exercises with their groups. Over time, the participants picked up their pace; for the high-intensity group, that also meant incorporating some different exercises during their walks.

The participants all wore accelerometers during their walks to measure their speed and distance, and the researchers measured each participants baseline speed and overall function at the start of the study.

The results

Overall, the researchers learned that increasing walking speed was associated with better outcomes for the participants.

Perhaps most importantly, these health benefits didnt require a significant increase in speed or intensity. Increasing cadence by at least 14 steps per minute above their usual rate was associated with the best health outcomes.

Participants who were able to reach that benchmark were able to walk longer distances without complication and had improved functional capacity overall. By the end of the study, these participants were able to increase their walking speed by an average of 30 minutes on each walk.

People who havent experienced frailty can't imagine how big a difference it makes to be able to not get tired going to the grocery store or not need to sit down while they're out, researcher Dr. Daniel Rubin said in the news release.

New study links paternal history to higher buildup of Alzheimers-related tau protein

• Adults with a father who had Alzheimers showed greater tau buildup, a key marker of the disease.

• Women in the study had more widespread tau in their brains than men.

• Findings could help guide personalized prevention strategies before memory loss begins.

Weve all heard how having a parent with Alzheimers could bump up our own risk of developing the disease but what if it matters which parent?

A recent study by the American Academy of Neurology reveals something surprising: it might actually be your dads history, not your moms, that correlates more strongly with a specific Alzheimers marker in the brain. While previous research often pointed to maternal inheritance, this study flips the narrative, focusing on how tau protein not just memory decline might have its own family story.

We were surprised to see that people with a father with Alzheimers were more vulnerable to the spread of tau in the brain, as we had hypothesized that we would see more brain changes in people with affected mothers, study author Sylvia Villeneuve, Ph.D. said in a news release.

The study

Researchers tracked 243 cognitively healthy adults, all around 68 years old, who had at least one parent (or two siblings) with Alzheimers. Importantly, none of the participants had any thinking or memory issues when the study began.

They underwent brain scans and memory testing, then were followed for almost seven years. Over that time, 71 people developed mild cognitive impairment often seen as an early step toward Alzheimers.

The team measured two key protein markers in the brain: beta-amyloid and tau. Tau buildup is especially linked to Alzheimers disease.

The results

The researchers discovered a paternal pattern throughout the study.

Participants whose fathers had Alzheimers showed a greater spread of the tau protein in their brains. This was a surprising finding especially since the team expected maternal influence to be stronger.

Additionally, gender mattered too. Women in the study had a heavier tau buildup than men and were more likely to show widespread tau protein spread.

Its important to note that these findings are associations, not proof of direct cause. Additionally, the study participants were mostly white, so the findings may not apply equally across all races and ethnicities.

However, the researchers explained that these insights might help health care professionals design personalized interventions that protect those at higher risk before symptoms even surface.

Better understanding these vulnerabilities could help us design personalized interventions to help protect against Alzheimers disease, Dr. Villeneuve said.

After three tries, judge's ruling is final

• Federal judge dismisses class-action lawsuit over Amazons ad-supported Prime Video tier.

• Court rules Amazon acted within its rights under existing user agreements.

• Plaintiffs barred from refiling after third failed attempt to plead claims.

A federal judge has dismissed a class-action lawsuit against Amazon that claimed the company deceived Prime Video users by introducing advertisements unless they paid an additional monthly fee. The decision ends months of litigation over Amazons controversial change to its streaming service.

U.S. District Court Judge Barbara Jacobs Rothstein, ruling from the Western District of Washington on July 16, granted Amazons motion to dismiss the consolidated class-action complaint with prejudice, meaning the plaintiffs cannot try again.

Amazons right to modify upheld

Central to the courts ruling was the finding that Amazon had not violated its terms of service. Judge Rothstein referenced a previous ruling that determined the introduction of ads was not a price increase but rather a benefit modification a change the company was authorized to make under the membership agreement.

Amazons terms, the judge emphasized, gave the company sole discretion to add or remove Prime membership benefits at any time. Amazon never promised to Prime members or anyone else that Prime Video would be always, or entirely, ad-free, the company stated in its legal filings.

Plaintiffs' claims ruled unreasonable

The plaintiffs had argued that Amazons move amounted to a bait and switch, misleading customers who believed ad-free streaming was a guaranteed feature of their Prime membership. The lawsuit, originally filed in February 2024, said customers were unfairly forced to pay an additional $2.99 per month to maintain ad-free streaming, something they had already paid for.

Judge Rothstein was not persuaded. She ruled that it was not reasonable for customers to assume that Prime Videos ad-free model would remain unchanged. The decision criticized the plaintiffs for relying on personal expectations rather than the language of Amazons user agreement.

This ruling marks the third time the plaintiffs have attempted to bring similar claims against Amazon. Judge Rothstein noted that each version of the complaint failed to present new or viable legal theories and therefore denied any further opportunity for amendment.

[T]his is Plaintiffs third attempt to plead viable claims, Rothstein wrote. No further amendment will be permitted.

Background and impact

Amazon began rolling out ads on Prime Video content in early 2025, offering users an option to pay $2.99/month to continue watching without commercials. The change sparked widespread customer backlash and legal scrutiny.

Despite customer frustration, the courts ruling affirms that Amazons service agreements allow for such changes. The decision is a major legal win for Amazon and sets a precedent for subscription-based platforms seeking flexibility in adjusting their service offerings.