.....I would be very suspicious of the timing of this suit. If you believe Jack's email about the progress of a sale, this may well derail that transaction, helping senators Durbin and Harkin to achieve their goal of eliminating CCI. This comes at a time when cashflow has reached a critical point. Mr. straw, meet Mr. camel's back.
10 replies (most recent on top)
"i'm not asking anyone to work for free..." No Jack, you aren't.
Durbin & Harkin did not create the Genesis loan subsidiary. Get that aluminum foil off your shoes. You cannot fool all the people all the time.
It all comes down to the wrong people trying to manage the wrong people... teaching the wrong students.
It all comes down to the wrong people trying to manage the wrong people
Do you think it is any wonder that the bad business practices are finally catching up? I don't care if you believe there is any case here, one thing is certain: CCi has lost hundreds of millions of dollars over the last 4 years. Call it a conspiracy if you want, but I call it bad management.
The only conspiracy, as far as I'm concerned, is what the hell took so long????????
Why on earth would ANYONE believe Jack's lies about a sale? I actually LAUGHED at that when I saw it, thinking, oh more crap he's telling us to keep us around.
From the AP (LINK: http://abcnews.go.com/Business/wireStory/corinthian-colleges-sued-predatory-lending-25542886)
Corinthian Colleges is being sued by the federal Consumer Financial Protection Bureau for what it calls a "predatory lending scheme."
The CFPB is seeking more than $500 million for borrowers who used the for-profit education company's private student loans. Corinthian misled students about their job prospects, in some cases paying employers to offer temporary jobs to graduates, the agency said Tuesday.
Corinthian charged as much as $75,000 for a bachelor's degree and pushed students into private loans with interest rates of roughly 15 percent, more than double the rate for a federal loan, the CFPB said. More than 60 percent of Corinthian students with those loans defaulted within three years.
"We believe Corinthian lured in consumers with lies about their job prospects upon graduation, sold high-cost loans to pay for that false hope, and then harassed students for overdue debts while they were still in school," said CFPB director Richard Cordray.
Kent Jenkins, a Corinthian spokesman, disputed the claims made by the CFPB.
Jenkins said the suit is based on "isolated incidents" at Corinthian's campuses regarding job placement. He said that the interest rate on its private loans averages 9 percent, instead of the 15 percent cited by the government. Corinthian requires that students repay the loans while attending class, having them pay an average of $35 a month.
"We ask students to make payments while in school to help them develop the discipline and practice of repaying their federal and other loan obligations," Jenkins said.
Shares of Corinthian Colleges Inc. dropped 4 cents, or 30 percent, to 10 cents in late trading following the lawsuit announcement.
The entire for-profit education sector has come under intense government scrutiny. The Department of Education put into place new regulations that cut off federal aid if too many students default on loans or fail to earn enough money after graduation to repay them.
Earlier this year, the Obama administration proposed even tighter regulations.
The CFPB action is the latest blow to Corinthian. The company already plans to close a dozen of its U.S. campuses under an agreement with the Education Department, which also placed Corinthian under an independent monitor, former federal prosecutor Patrick Fitzgerald.
The Santa Ana, California-based company also plans to sell up to 85 of its branch campuses. The company owns Everest College, Heald College and WyoTech schools.
As of March, 74,000 students were enrolled at the company's campuses.
The suit is real. It's been picked up by major news outlets.
CCi will already be eliminated through sale and closure. Are you suggesting that Durbin and Harkin are collaborating to remove ALL for profit education establishments by controlling the release/creation of propoganda?