The CFPB’s Action Against Corinthian Colleges, Inc.

On September 16, 2014, The CFPB announced that it would sue Corinthian Colleges, which runs over 100 school campuses for falsely advertising of job prospects and illegal debt collection practices. CFPB has issued this notice to past and current students. The CFPB’s complaint is here.

Here is how the CFPB characterized the complaint in its press release:

“For too many students, Corinthian has turned the American dream of higher education into an ongoing nightmare of debt and despair,” said CFPB Director Richard Corday. “We believe Corinthian lured consumers into predatory loans by lying about their future job prospects, and then used illegal debt collection tactics to strong-arm students at school. We want to put an end to these predatory practices and get relief for the students who are bearing the weight of more than half a billion dollars in Corinthian’s private student loans.”

John Oliver had this to say about Corinthian and other for-profit universities.

Since CFPB announced its action, Occupy-movement off-shoot “Rolling Jubilee” recently purchased and “abolished” $3.8 million in Corinthian student debt, for only about $100,000, as reported here by the BBC. That’s about 2.6 cents on the dollar.