Consumer-Finance Agency May Take Action Against Corinthian Colleges

The Consumer Financial Protection Bureau has informed Corinthian Colleges Inc., a for-profit provider of higher education, that the bureau’s enforcement office may recommend that the agency take legal action against the company for possible violations of federal law.

Corinthian said on Monday in a corporate filing with the U.S. Securities and Exchange Commission that it had received a letter stating that the CFPB’s enforcement office expects to allege that the company violated the Consumer Financial Protection Act of 2010. The letter also stated that the CFPB “may seek injunctive and monetary relief” if it takes action against the company.

The company said in the filing that it intended to respond to the CFPB and “continues to believe that its acts and practices relating to student loans—financing that is essential to preserving our students’ access to postsecondary education—are lawful.”

Corinthian is the second for-profit-college company to disclose in recent weeks that the CFPB was considering taking action against it. ITT Educational Services Inc. made a similar disclosure last month.

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