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Wednesday, February 26, 2014

Ind. Courts - "US consumer bureau sues college chain ITT over student loans"

Updating this post on student debt from Feb. 23rd, Reuters' Elvina Nawaguna reports this afternoon:

(Reuters) - The U.S. consumer watchdog said on Wednesday it has sued ITT Educational Services Inc for what the agency says are predatory student lending practices that could lead borrowers to default on their loans.

The U.S. Consumer Financial Protection Bureau (CFPB) said the Indiana-based for-profit college chain exploited students and pushed them into "high-cost private loans" that leave them strapped with debt.

The agency, in a complaint filed in U.S. District Court in Indianapolis, Indiana, said it is seeking restitution for victims, a civil fine, and an injunction against the company. * * *

The CFPB said that ITT used high-pressure tactics to push students into taking out loans without enough time to understand the details, misled students about future job prospects, and coaxed students into taking out more loans, while knowing they would not be able to pay them back.

Posted by Marcia Oddi on February 26, 2014 03:33 PM
Posted to Indiana Courts