WASHINGTON (Legal Newsline)
— The Consumer Financial Protection Bureau (CFPB) has taken action against
Bridgepoint Education Inc., a for-profit college chain, for allegations of
deceiving students into loans that cost more than advertised.
Bridgepoint offered loans
from 2009 until recently. It purportedly deceived students, telling them the
wrong monthly repayment amount they would need to pay. The consumer bureau alleged Bridgepoint often told students their monthly repayment amount could be as
low as $25 – an unrealistic amount.
The CFPB is ordering
Bridgepoint to discharge all outstanding private loans it has made to students.
Additionally, the CFPB seeks to have Bridgepoint refund loan payments that
borrowers already have made. These refunds, along with the loan forgiveness,
could deliver more than $23.5 million in relief to consumers. Bridgepoint must
also pay the CFPB an $8 million civil penalty.
its students into taking out loans that cost more than advertised, and so we
are ordering full relief of all loans made by the school,” CFPB Director Richard Cordray said. “Together with our state partners, we will continue to
be vigilant in rooting out illegal practices facing student borrowers in the