Thread regarding Corinthian Colleges Inc. layoffs

Oh the irony! I specifically remember writing an email to my DOA and Admissions Manager about this very subject when the loan program was rolled out. The idea of students financing their education with an interest rate resembling that of a payday loan never sat well with me. Glad I listened to my gut, and jumped ship when I did. Maybe in their next positions they will pay attention when the canary furiously flies out of the mine.

Ah, the Genesis loan program. I knew when NA rolled it out that it was going to be sleazy. In the early days, it was one of the student finance "topics" that could ONLY be discussed on phone calls. Nothing in writing, never mentioned in emails, etc by order of NA. Back then MH was her little lackey, and would end the calls with dire warnings for anyone who dared even make an indirect reference to one of the special "topics" in an email. The other topics included 90/10.

Anonymous37044- In principle, you are very likely correct.

Stocks just took a dive to $0.10 a share after this announcement. Doesn't really matter because the shares have basically been in the teens! I don't really see a fall term at this rate!

So I'm guessing CCI didn't like the conditions......

On August 21, 2014, the Company’s lawyers met with attorneys for the U.S. Consumer Financial Protection Bureau (the “CFPB”), and subsequently received a letter memorializing certain aspects of the discussion, in which the CFPB asserted violations by the Company of the Dodd-Frank Act and the Fair Debt Collections Practices Act indicated its willingness to engage in settlement discussions with the Company, so long as the Company would agree to certain conditions. These conditions include (i) providing certain financial disclosure materials, (ii) ceasing the sale or transfer of private student loans, (iii) ceasing to engage in certain in-school collection efforts the CFPB considers unlawful, (iv) providing students and prospective students with the same disclosures regarding the potential sale of certain campuses that the Company has provided to California students as part of an agreement with the California Attorney General, and (v) notifying the CFPB of any indications of material interest in purchasing any of the Company’s assets. The CFPB also requested certain documents relating to a recently-completed sale of student notes (discussed under Item 2.06 above) and certain information relating to the student loans that the Company continues to hold and any private lending arrangements to which the Company is currently a party. The CFPB provided the Company until August 29, 2014 to indicate whether it would agree in principle to such conditions.

In April 2012, the Company was served with a Civil Investigative Demand (“CFPB CID”) from the U.S. Consumer Financial Protection Bureau (“CFPB”). The CFPB CID stated that its purpose is to “determine whether for-profit postsecondary 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 CFPB CID contained extensive interrogatories and document production demands related to the Company’s involvement with student loans and many other aspects of the Company’s business. The Company objected to the inquiry by filing a petition with the CFPB to set aside or modify the CFPB CID, but voluntarily provided documents and other information to the CFPB while the petition was pending. In September 2013, the CFPB withdrew its prior CFPB CID and issued a new CFPB CID to the Company covering substantially the same matters as the prior CFPB CID. The Company also objected to the second CFPB CID by filing another petition to modify or set aside the new CFPB CID, but continues to voluntarily cooperate while the petition is pending.

In December 2013, the Company received a letter from the CFPB notifying the Company that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against the Company (the “NORA Letter”). The NORA Letter states that the staff of the CFPB’s Office of Enforcement (the “Staff”) expects to allege that the Company violated the Consumer Financial Protection Act of 2010, 12 U.S.C. §5536. The NORA Letter also states that if such action is brought the CFPB may seek injunctive and monetary relief against the Company. The Company made a NORA submission, which is a written statement setting forth the reasons why the Company believes the CFPB should not take legal action against it. The Company understands that a NORA notice from the Staff is intended to ensure that potential subjects of enforcement actions have the opportunity to present their positions to the CFPB before an enforcement action is recommended or commenced. Following the Company’s NORA submission in January 2014, the CFPB has requested additional documents and information from the Company, and the Company has provided extensive documents and written answers to CFPB’s inquiries. The Company continues to believe that its acts and practices relating to student loans are lawful.

Yes the CFPB investigation was before, but now they have filed the lawsuit. Tells me they have the evidence enough to file a lawsuit.

I hear the fat lady signing....

This was started a few weeks ago when they sold the loans off. The CFPB dove into the legality of the Genesis loans and the in-school collection practices. CCi immediately stopped the collection of Genesis payments the next day. Appears the board found it illegal after all. Another nail in the coffin. This is happens when you enroll students that need to finance 100% of the tuition plus rent and living.

This may be the death gong for CCI. I really think its over now.

Haven't we heard this before?

Anonymous37030- The CFPB investigation started long before Fitzgerald was around.

It will never be paid. It's another threat because Jack & Co still don't know enough to call Fitzgerald "Sir" and do what they're told. They forget that they're messing with the feds. You can't just give them the finger and expect everything to just go away. No matter how many political contributions you've made. CCi is being made an example of to bring the rest of the industry in line, but the execs still seem to have no idea what's going on.

http://www.consumerfinance.gov/f/201409_cfpb_notice-for-current-and-former-corinthian-students.pdf

This will be bad for the remaining employees because there has to be more cuts to be made due to this.

$500M when they cannot meet payroll. lol