States Investigate For-Profit Chains
- CFPB is investigating Corinthian Colleges, possibly focusing on student lending
- ITT's federal compliance scramble differs from Corinthian's shut down
- Corinthian's failure (and U.S. role in it) fuels for-profit critics
- For-profit chain works with feds on phase-out plan
- Consumer Financial Protection Bureau sues ITT, alleges predatory loan scheme
Several holding companies of major for-profit chains announced Monday that they have received letters of inquiry from attorneys general in a group of states, usually a dozen or so. The investigations center on business practices, such as the recruitment of students, graduate placement statistics and student lending activities, according to corporate filings. The companies include Career Education Corporation, ITT Educational Services Inc. and Corinthian Colleges Inc. The investigations have been in the works for years, and feature a growing number of for-profits.