Regulator Accuses ITT College Chain of Predatory Lending
In its first action against a company in the for-profit college
industry, the federal Consumer Financial Protection Bureau on
Wednesday sued ITT Educational Services Inc., which operates 149
schools in 40 states, including 14 in California.
The consumer protection agency alleges that ITT used high-pressure tactics over a five-month period beginning in July 2011 to coerce students into high-interest private loans that were likely to end in default.