U.S. consumer watchdog accuses Corinthian Colleges of predatory loans

Reuters News
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Posted: Sep 16, 2014 12:51 PM

WASHINGTON (Reuters) - The U.S. consumer finance watchdog on Tuesday sued Corinthian Colleges for alleged predatory lending, saying that the for-profit institute lured students into taking out private student loans by touting "bogus" job prospects and using illegal debt-collection methods.

The Consumer Financial Protection Bureau said it wants the company to pay $500 million in relief for the tens of thousands of students affected.

(Reporting by Elvina Nawaguna; Editing by Chizu Nomiyama)