ITT Moves to Block Consumer Bureau Claim
- Consumer Financial Protection Bureau sues ITT, alleges predatory loan scheme
- CFPB is investigating Corinthian Colleges, possibly focusing on student lending
- ITT's federal compliance scramble differs from Corinthian's shut down
- Federal regulators finalize rule to provide more oversight of student loan servicers
- CFPB report looks for solutions on private student loan debt
ITT Educational Services has filed a court motion to dismiss a complaint the Consumer Financial Protection Bureau (CFPB) lodged against the for-profit chain in February. In its first enforcement action against the sector, the CFPB accused ITT of predatory lending and other abusive practices.
However, the lawsuit filed this week by ITT claims the bureau has overstepped its statutory authority. More broadly, the for-profit claimed the CFPB's enforcement approach lacks due process and is unconstitutional.