Regulators Sue Corinthian Colleges for Allegedly Harassing Low-Income Students
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The Consumer Financial Protection Bureau is suing Corinthian Colleges, one of the largest operators of for-profit colleges in the U.S., on grounds that it deceived students and harassed them to collect on student loan debts. The CFPB, a federal government agency, charges (PDF) that Corinthian used false promises of employment prospects to lure students, induced them to take out predatory loans, and publicly humiliated them when they couldn’t pay.
“Corinthian has turned the American dream of higher education into an ongoing nightmare of debt and despair,” said CFPB Director Richard Cordray in a statement.