The Consumer Financial Protection Bureau's formal complaint filed earlier this year against ITT Educational Services Inc. has unexpectedly caught a credit union CUSO in its wake.

Now, six CUSO member institutions may be coming under closer scrutiny for what the complaint says are the for-profit financial institution's deceptive and abusive actions and corresponding violations of both the Truth in Savings Act and Part 1026 of Regulation Z.

Filed Feb. 26, the complaint at the United States District Court for the Southern District of Indiana in Indianapolis alleged that the Carmel, Ind.-based for-profit ITT targets largely low-income students and then entraps them in a series of high interest rate temporary and private student loans most students have little hope of repaying. 

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