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California Association of Private Postsecondary Schools

Another For-Profit College in Consumer Agency's Sights

01/08/2014

Inside Higher Ed.  Jan 7, 2014.  

The Consumer Financial Protection Bureau has told Corinthian Colleges, Inc. that the agency's enforcement office may urge the CFPB to "take legal action" against the for-profit higher education provider for possible violations of federal law, Corinthian announced in a federal tax filing Monday. In its statement, the for-profit education provider said that the consumer bureau had informed it in December that its enforcement staff plans to charge the company with violating the Consumer Financial Protection Act of 2010. The consumer bureau may seek "injunctive and monetary relief" against Corinthian, the agency told the company.

Corinthian officials said that they would respond to the agency's notice and that they believe the company's "acts and practices relating to student loans — financing that is essential to preserving our students’ access to post-secondary education — are lawful." 

ITT Educational Services, Inc. announced having received a similar warning from the CFPB last month.