In September 2014, just seven months before Everest University, WyoTech and Heald College closedtheir doors, federal regulators sued the for-profit colleges’ parent company Corinthian Colleges Incclaiming it duped thousands of students into taking out costly, predatory, and often financially devastating, private student loans to finance their post-secondary education. This week, the Consumer Financial Protection Bureau won a default judgment against the for-profit educator for engaging in a predatory lending scheme.
The CFPB announced today that a federal court entered a final default judgment [PDF] finding CCI liable for more than $530 million in loans taken out by students since July 21, 2011.
However, because CCI filed for bankruptcy in early 2015 and liquidated its assets, the company cannot pay the judgment.
The Bureau says it will continue to pursue relief for consumers harmed by CCI’s unlawful conduct.
“The CFPB remains concerned about efforts to collect on loans made in association with Corinthian’s illegal conduct,” the Bureau said in a statement.
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