A former vocational college which misled students, leaving them with debts of more than $60 million, has been handed a multi-million fine by the Federal Court.
Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb said the Court had ordered Captain Cook College to pay penalties of $20 million for “engaging in systemic unconscionable conduct”.
Ms Cass-Gottlieb said the college was ordered to pay an additional $750,000 for “making false or misleading representations to students” in connection with online diploma courses under the former VET FEE-HELP loan program.
She said the Court also imposed penalties of $10 million on Captain Cook College’s parent company, Site Group International Limited and $400,000 on Blake Wills, Site’s former COO, who were “knowingly concerned in Captain Cook College’s system of unconscionable conduct”.
Ms Cass-Gottlieb said the College, which received tens of millions of dollars of Federal Government funding, removed consumer safeguards from its enrolment and withdrawal processes from September 7, 2015.
She said the removal of these safeguards meant that thousands of students incurred substantial debts, despite the fact they were not engaging with their courses.
“As a result of Captain Cook College’s actions, about 5500 affected consumers were left with VET FEE-HELP debts, totalling over $60 million.
“The vast majority of them failed to complete any part of their course, and around 86 percent never even logged in to their online course.”
Ms Cass-Gottlieb said the Government ultimately waived the VET FEE-HELP debts of affected Captain Cook College students and withheld some of the payments from the college.
“Captain Cook College’s conduct not only cost taxpayers tens of millions of dollars, but it also caused distress to the thousands of consumers enrolled in their courses who for many years were told they had significant debts to the Government.”
