SENIORS have been warned to beware training providers offering incentives and using high pressure tactics to convince them to sign up for training courses and student loans.
Create a free account to read this article
$0/
(min cost $0)
or signup to continue reading
NSW Fair Trading and the Australian Consumer and Competition Authority have launched a joint investigation into unscrupulous providers who have duped at least 600 people, including a 70-year-old woman, into taking out student loans.
NSW Fair Trading Minister Matthew Mason-Cox said consumers had called Fair Trading to report they had been tricked into taking out loans or had experienced issues in relation to refunds, cancellations and cooling off periods.
One woman, 70, was unaware she had signed up for a $15,000 loan.
Some complainants were approached outside Centrelink offices and some were told they wouldn’t need to repay the federal government VET FEE-HELP loan.
He said while most training providers did the right thing, some were using rogue marketers to recruit people to courses.
Marketing companies are believed to have targeted isolated communities where groups of vulnerable people have been locked into loans they can’t afford.
The seminars have secured about $1 million for course operators because of the large number of people signing up for loans.
“They are exploiting some of the most vulnerable members of our community, signing them up to VET FEE-HELP courses they don’t need and can’t repay,” Mr Mason-Cox said.
“Marketing methods include doorknocking in lower socio-economic areas and using the names of trusted local community groups to gain peoples’ trust.
“Some people have come to NSW Fair Trading saying marketers have signed them up to multiple courses and loans without their knowledge or consent.” In some cases, iPads, laptops, cash and vouchers were offered as enticements.
Mr Mason-Cox said consumers should check training providers were accredited with the National Register on Vocational Education and Training and always read the fine print.
“Carefully check the contract details and cancellation fees as well as their policy for cooling off periods, cancellations and refunds,” he said.
“Importantly, never give out your personal details unless you have done all the checks and decided to enrol.”
There has been a 23 per cent increase nationwide in complaints about training providers.
Businesses who contravene the Australian Consumer Law could face fines of up to $1.1 million for corporations and $220,000 for individuals.
An ACCC spokesman said the authority was undertaking a number of investigations into possible breaches of consumer law relating to the training and education sector.
