Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans [View all]
CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans
By Ashlee Kieler
The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default.
The complaint [PDF] charges that between 2009 and 2011 ITT Educational Services, Inc., pressured students into predatory loans and mislead students on future job prospects and salaries, CFPB director Richard Cordray announced during a news conference Wednesday.
The suit seeks restitution, a civil fine, and an injunction against the for-profit college chain.
“ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line,” CFPB Director Richard Corday said in a news conference Wednesday. “We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default. Today’s action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics.”
The CFPB’s lawsuit alleges that between July 2009 and December 2011, ITT encouraged students to enroll by providing them with a zero-interest loan called “Temporary Credit.” The credit was used to close the tuition gap between a student’s federal aid and the school’s high tuition rate.
- more -
http://consumerist.com/2014/02/26/cfpb-sues-itt-tech-for-allegedly-exploiting-student-pushing-predatory-loans/
By Ashlee Kieler
The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default.
The complaint [PDF] charges that between 2009 and 2011 ITT Educational Services, Inc., pressured students into predatory loans and mislead students on future job prospects and salaries, CFPB director Richard Cordray announced during a news conference Wednesday.
The suit seeks restitution, a civil fine, and an injunction against the for-profit college chain.
“ITT marketed itself as improving consumers’ lives but it was really just improving its bottom line,” CFPB Director Richard Corday said in a news conference Wednesday. “We believe ITT used high-pressure tactics to push many consumers into expensive loans destined to default. Today’s action should serve as a warning to the for-profit college industry that we will be vigilant about protecting students against predatory lending tactics.”
The CFPB’s lawsuit alleges that between July 2009 and December 2011, ITT encouraged students to enroll by providing them with a zero-interest loan called “Temporary Credit.” The credit was used to close the tuition gap between a student’s federal aid and the school’s high tuition rate.
- more -
http://consumerist.com/2014/02/26/cfpb-sues-itt-tech-for-allegedly-exploiting-student-pushing-predatory-loans/
10 replies
= new reply since forum marked as read
= new reply since forum marked as read