Details on Consumer Bureau Investigation of Corinthian

August 26, 2014

Corinthian Colleges, the struggling for-profit chain that is selling or closing its 107 campuses, announced Monday in a corporate filing that the U.S. Consumer Financial Protection Bureau (CFPB) appeared willing to discuss a possible settlement. The CFPB has been investigating the company. Last week it sent a letter Corinthian alleging violations of the Dodd-Frank Act and the Fair Debt Collection Practices Act, the company said.

The CFPB said it would require several conditions as part of a possible settlement, according to Corinthian. They would include ceasing the sale or transfer of private student loans, providing prospective students with more information about the company's financial problems, and providing the bureau with details about the possible sale of Corinthian's assets. The company reported that it had sold a portfolio of student loans for $19 million one day before receiving the letter from the feds.

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