Corinthian Colleges gets notice from U.S. consumer watchdog

Mon Jan 6, 2014 5:50pm EST

Jan 6 (Reuters) - Corinthian Colleges Inc said on Monday it received a letter from the U.S. consumer watchdog related to advertising, marketing or origination of private student loans.

Corinthian's shares fell 7 percent in extended trading after the company said in a regulatory filing that the U.S. Consumer Financial Protection Bureau was considering legal action against the for-profit education provider.

The company said it would make a notice and opportunity to respond and advise (NORA) submission to the CFPB.

"The company ... continues to believe that its acts and practices relating to student loans - financing that is essential to preserving our students' access to post-secondary education - are lawful," Corinthian said. ()

Corinthian's shares were at $1.55 after the bell. They closed at $1.67 on the Nasdaq on Monday.

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