UPDATE: ITT Educational Services Receives a Civil Investigative Demand
On May 18, 2012, ITT Educational Services, Inc. (NYSE: ESI) received a Civil Investigative Demand (“CID”) from the U.S. Consumer Financial Protection Bureau (“CFPB”). The CID provides that the purpose of the investigation is, in part, “to determine whether for-profit post-secondary companies, student loan origination and servicing providers, or other unnamed persons have engaged or are engaging in unlawful acts or practices relating to the advertising, marketing, or origination of private student loans.” The CID contains broad requests for production of documents, answers to interrogatories and written reports related to private education loans made to the Company's students and many other aspects of the Company's business. The Company is in the process of evaluating the CID and plans to respond to the CFPB in due course. The Company believes that its acts and practices relating to private student loans are lawful.
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