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The Full Federal Court has dismissed an appeal by Captain Cook College against a decision in July 2021 that it had engaged in a system of unconscionable conduct to secure additional government. | April 6, 2023
Another private education provider found deceiving students to maximise profit
About 86 per cent of affected students never logged into their course.
July 4, 2021
The Federal Court found on the 2 July that private education institution Captain Cook College engaged in systemic unconscionable conduct to maximise profit from vulnerable and disadvantaged students, the majority of whom did not complete any part of their course.
Productivity Partners Pty Ltd, trading as Captain Cook College, offered diploma courses subsidised by VET FEE-HELP government loans on campuses in Sydney and Brisbane.
The college recruited students outside Centrelink offices on the false premise that they would be given a free laptop and course that they would not have to repay.
Date Time
Court finds Captain Cook College acted unconscionably and misled students
The Federal Court has found that Productivity Partners Pty Ltd, trading as Captain Cook College, engaged in a system of unconscionable conduct and made false or misleading representations to prospective students in relation to online diploma courses following contested proceedings.
The Court found Captain Cook College implemented a system of unconscionable conduct from 7 September 2015, when it removed consumer safeguards from its enrolment and withdrawal processes for online courses under the former VET FEE-HELP loan program to improve its financial performance.
During a period of about three months following these changes, Captain Cook College enrolled over 7,000 consumers in online courses in subjects such as business, project management and human resource management, and claimed over $50 million from the Commonwealth under the VET FEE-HELP program for about 6,000 of those consumers.