CFPB Sues ITT Over Deceptive Student Loan Practices

Law360, Washington (February 26, 2014, 4:07 PM EST) -- The Consumer Financial Protection Bureau slammed ITT Educational Services Inc. with a lawsuit in Indiana federal court on Wednesday, accusing the for-profit college chain of predatory student lending practices.

The agency claims that ITT used “high pressure tactics” to convince prospective students to sign up for expensive, unaccredited programs, hand over their GI bill or federal student loan money, and rack up additional tuition debt on student loans with interest rates as high as 16 percent.

“It's like financing your college degree on your credit card,”...
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