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Predatory Lenders Targeted
By Danielle Leigh
(NBC News) The Obama administration is suing one of the largest for-profit college chains in the country for predatory lending.
In a lawsuit filed Wednesday the Consumer Financial Protection Bureau accused ITT Educational Services of deceptively pushing students into high cost loans and making misleading promises about their degrees.
The agency says ITT tricked students into high interest loans and made misleading promises about future job prospects after graduation.
"Though ITT marketed itself as improving consumers lives, it really was just improving its bottom line," said the CFPB's Richard Cordray.
In a statement, ITT said "the bureau's claims are without merit" and promised to defend itself.
This lawsuit is just the beginning of a broader crackdown.
New Mexico is now taking action against ITT's nursing program and more than a dozen states have issued subpoenas for Career Education Corporation, Corinthian Colleges, and Education Management Corporation in addition to ITT.
Attorneys general say more lawsuits could be ahead.