CFPB Granted Default Judgment Against Corinthian Colleges For Engaging In A Predatory Lending Scheme

On October 27, 2015, a federal district court entered a final default judgment against Corinthian Colleges, Inc. for engaging in deceptive lending practices and illegal debt collection practices. The Consumer Financial Protection Bureau (CFPB or the Bureau) filed suit against Corinthian in September 2014, alleging that the company "induced students to enroll in its programs through false and misleading representations about its graduates' career opportunities," including falsely inflating job placement statistics. The CFPB further alleged that when students defaulted on their loans, "Corinthian took illegal aggressive action" to collect the debt, even while some students were still in school.