Consumer Agency May Pursue Legal Action Against For-Profit College
The Consumer Financial Protection Bureau has informed ITT Educational Services that the federal 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, ITT announced in a federal tax filing Friday. In its statement, ITT, which operates more than 140 ITT Technical Institutes in 38 states, said that the consumer bureau had notified it about the potential legal action on Dec. 23. The agency's notice said its enforcement staff plans to allege that the company violated the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Truth in Lending Act, and other financial regulations, and that the staff "expects to recommend seeking remedies and penalties to the fullest extent of the law."
ITT officials said that they would respond to the agency's notice and that they believe the company's "acts and practices relating to the matters under investigation are lawful."