BREAKING: Federal Consumer Agency Sues For-Profit College ITT Tech

http://www.republicreport.org/2014/cfpb-sues-itt/



BREAKING: Federal Consumer Agency Sues For-Profit College ITT Tech
February 26, 2014

Posted at 12:30 pm by David Halperin

The federal Consumer Financial Protection Bureau this morning filed a civil lawsuit against for-profit college company ITT Educational Services, seeking restitution to students allegedly harmed by ITT’s private loan programs, a civil fine, and an injunction against the company. The CFPB filed its complaint in federal court in Indianapolis, near ITT’s headquarters.

UPDATE (1:15 pm): The CFPB just held a press conference to discuss the case. CFPB director Richard Cordray charged that ITT “misled students by overstating their salaries and job prospects upon graduation” and then pushed them into predatory high-interest private student loans.

Cordray called the abuse of students by the overall for-profit college industry “truly an American tragedy.” He was joined at the event by the attorneys general of Kentucky, Illinois, Iowa, and New Mexico, all of whom are conducting investigations of major for-profit colleges.

Illinois AG Lisa Madigan called for-profit college business practices “indefensible.” Kentucky AG Jack Conway discussed the new investigation that thirteen state AGs have launched against Education Management Corporation, Career Education Corporation, and Corinthian Colleges, as well as ITT. He said many for-profit colleges were “more interested in getting student loan dollars than in educating students.”