CFPB Action Against Bridgepoint Education

September 12, 2016

On Monday, September 12, 2016, the CFPB entered into a consent order with Bridgepoint Education, Inc., a for-profit, post-secondary education company based in San Diego, for allegedly deceiving students into taking out private student loans which cost more than advertised.  The Bureau is ordering Bridgepoint to discharge all outstanding private loans made by the institution to its students and to refund loan payments already made by borrowers. Loan forgiveness and refunds will total over $23.5 million in automatic consumer relief.  Bridgepoint must also pay an $8 million civil penalty to the Bureau.