ITT Accused of Unfair, Deceptive and Abusive Acts or Practices
The Consumer Financial Protection Bureau (Bureau) proposes settlement with ITT Educational Services, Inc. — ITT engaged in unfair and abusive practices in connection with its private loan program in violation of the Consumer Financial Protection Act of 2010.
ITT Knew Students Could Not Afford and Did Not Understand the Loans
The Bureau’s complaint, filed in the U.S. District Court for the Southern District of Indiana in 2014, alleges that ITT helped to create private loan programs for students at ITT Technical Institute, the school run by ITT until it filed for bankruptcy and ceased operations in 2016. The Bureau alleges that ITT improperly induced students to take out those loans to pay the tuition amounts not covered by loans or other tuition assistance from the federal government. The Bureau’s complaint also alleges that ITT knew that the student borrowers did not understand the terms and conditions of the loans and could not afford them, resulting in high default rates and other negative consequences.
The terms of the proposed stipulated order include, among other things, a judgment against ITT for $60 million and an injunction prohibiting ITT from offering or providing student loans in the future.
Student CU Connect, CUSO, LLC to Cease Collection Student Loans:
Pursuant to the Stipulated Final Judgment and Order in Bureau of
Consumer Financial Protection v. Student CU Connect CUSO, LLC, No. 1:19-cv-02397-JRS-DLP (S.D. Ind. June 20, 2019), CUSO has ceased collection of the CUSO Loans and has agreed to permanently cease enforcing, collecting, or receiving any payment on CUSO Loans.
Loans were unenforceable due to illegal business practices and misconduct.
ADDITIONAL ARTICLES:
- AP NEWS
- Indianapolis Business Journal
- New York Times
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
In Case You Missed It
Published On: June 29, 2024
From the National Consumer Law Center "NCLC" a toolkit to deal with your student loans, 5/2024 Whether you are just starting your student loan journey or have been dealing with student loan debt for decades, [...]
Published On: March 31, 2024
Into the Shadows: Unraveling the Dark World of Fraud, Schemes, and Scams The Sneaky World of Fraud and Scams: How They Work and Why You Should Be Careful Fraud and [...]
Published On: December 29, 2023
The article titled "Dangers of Using Public Wi-Fi Networks" posted on Galloptech Group's blog offers a comprehensive and insightful exploration of the risks associated with using public Wi-Fi networks. Here's an outline of what makes [...]
Published On: September 2, 2023
NEW STUDENT LOAN REPAYMENT PLAN, plus UPDATES (at end of this article) SAVE – “SAVING ON A VALUABLE EDUCATION” “SAVE” – New Student Loan Repayment Plan (8/23) [...]
