ITT Educational Services Seeks Dismissal of Bureau’s Complaint
May 12, 2014
ITT Educational Services, the target in the CFPB’s first enforcement action against a for-profit education company over allegations of predatory lending, has asked a court to throw out the bureau’s complaint, arguing that the CFPB’s lawsuit is unconstitutional on two key grounds. In its brief in support of its motion to dismiss, filed late last month before the U.S. District Court for the Southern District of Indiana, Indianapolis Division, ITT argues that the CFPB is an unconstitutional entity, first, because it has “no presidential oversight” and because there is “no Congressional control of funding” of the agency.Attorney John Culhane, a partner in the Philadelphia office of the Ballard Spahr law firm, pointed out in a client note about the...