Private training provider Careers Australia to pay back $44m to Government

May 16, 2016 by

A major training provider has admitted it broke consumer law and will pay back some of the millions it received in government-backed training loans.

Key points:

  • Careers Australia admitted to engaging in unconscionable conduct
  • The ACCC says the training provider targeted some Australia’s most vulnerable consumers
  • Under an agreement with the ACCC students can have debts cancelled

Careers Australia has come to an agreement with the Australian Competition and Consumer Commission (ACCC) to repay to the Australian Government any funds it obtained by signing up vulnerable students using false claims.

It has repaid $44.3 million to the Government after it cancelled 12,130 bogus enrolments.

This included students who were signed up but never actually undertook any study.

Careers Australia has received $190 million from the Government since 2013 under the VET-FEE-HELP student loan scheme, which extended HECS-style loans to students studying diploma courses.

During 2013 and 2015 Careers Australia signed up 40,000 students and officially enrolled about half that number, signing them up to student debts.

Today in a statement from the ACCC the company admitted that through the conduct of some its door-to-door agents, the company made false or misleading representations and engaged in unconscionable conduct.

Source: Private training provider Careers Australia to pay back $44m to Government, consumer watchdog says – ABC News (Australian Broadcasting Corporation)

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