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California Association of Private Postsecondary Schools

Consumer-Protection Agency May Act Against ITT Educational Services

12/30/2013

The Chronicle of Higher Education.  December 27, 2013.

The Consumer Financial Protection Bureau has notified ITT Educational Services that the bureau’s enforcement office is considering recommending that the federal agency take legal action against the for-profit-college company, ITT said on Friday in a filing with the U.S. Securities and Exchange Commission.

ITT said it had received a letter stating that the CFPB’s enforcement staff expects to allege that the company violated federal laws such as the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Truth in Lending Act. The letter also states that the bureau’s enforcement staff expects to recommend “seeking remedies and penalties to the fullest extent of the law.”

The company said in the filing that it intended to respond to the CFPB’s notice and “continues to believe that its acts and practices relating to the matters under investigation are lawful.”