The Wayne law firm Ryan and Maniskas, LLP is positioning itself to investigate alleged claims against ITT Educational Services, Inc. of Carmel, In., which is being sued by the Consumer Financial Protection Bureau.

According to a press release issued by the firm, the CFPB suit alleges ITT encouraged new students to enroll at ITT by providing them funding with a zero-interest loan of temporary credit. This loan typically had to be paid in full at the end of the student’s first academic year.

However, CFPB alleges ITT knew from the outset that many students would not be able to repay their temporary credit balances or fund their next year’s tuition gap. The suit alleges that from July to December of 2011, students were pushed into repaying their temporary credit and funding their second-year tuition gaps through high-cost private student loan programs.

CFPB says students were left in the dark about the fact that taking out these high-cost loans would be required to continue their studies. However, according to CFPB, ITT’s chief executive officer revealed in investor calls that converting the temporary loans to long-term loans was the company’s plan all along.

Following this news, shares of ITT Educational fell $3.10, or more than 9 percent, to close at $32.40 on Feb. 26.

ITT is stating on its web site that the CFPB’s complaint should never have been filed. It states the complaint overwhelmingly focuses on issues unrelated to consumer finance, and attempts to cast a negative light on aspects of ITT activities that are exclusively regulated by other government agencies. ITT states the claim concerns six months of loans provided by independent third parties, and the loan programs ended.

Furthermore, ITT states it did not make any money in interest or fees from the programs, which were designed to help students during the recent economic downturn.

Ryan and Maniskas, LLP practices nationwide. More information about the class action process here.

ITT Educational Services, Inc. provides accredited, technology-oriented undergraduate and graduate degree programs through the ITT Technical Institutes and Daniel Webster College. It owns and operates more than 135 institutes and serves more than 55,000 students in 39 states and online.