Corinthian Colleges, the crippled for-profit higher-education company that is in the process of winding down its operations, is in trouble again, this time with the federal Consumer Financial Protection Bureau.
On Tuesday the bureau filed a lawsuit accusing Corinthian of predatory lending and illegal collection tactics. The lawsuit seeks an end to the alleged practices and debt relief for affected borrowers.
"We believe Corinthian lured in consumers with lies about their job prospects upon graduation, sold high-cost loans to pay for that false hope, and then harassed students for overdue debts while they were still in school," Richard Cordray, the bureau’s director, told reporters on Tuesday.
In a written statement, Corinthian said it "strongly disputes" the lawsuit, which "mischaracterizes both the purposes and practices of the ‘Genesis' lending program." It accused the bureau of ignoring "clear, easily obtainable evidence that thousands of Corinthian graduates are hired into permanent positions by large and small employers across the U.S. every year" in favor of "isolated incidents" that the company itself identified, reported, and corrected.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/Federal-Watchdog-s-Lawsuit/148825