A Major Victory Against the VET FEE-HELP Scam
ACCC Secures $30.4 Million in Penalties Against Captain Cook College
Big news in the fight against educational exploitation! The Australian Competition and Consumer Commission (ACCC) has secured a significant victory, ordering Captain Cook College to pay a massive $20 million in penalties. This landmark decision is a direct response to the college’s unfair conduct and misleading practices concerning online diploma courses under the former VET FEE-HELP loan program. This ruling targets a serious VET FEE-HELP scam that harmed many Australians.
The college, which received tens of millions in government funding, deliberately removed important safeguards for students starting from September 7, 2015. This meant thousands of individuals ended up with huge debts, often without ever participating in their courses. This was a clear example of the VET FEE-HELP scam in action, preying on vulnerable individuals.
Need to Know:
- Captain Cook College fined $20 million for unfair conduct and misleading students.
- Total penalties, including the parent company and former COO, reach $30.4 million.
- About 5,500 students incurred over $60 million in VET FEE-HELP debts due to these actions.
- Most of these students never completed their courses; an astonishing 86% never even logged in.
The Devastating Impact of the VET FEE-HELP Scam
Students Left with Millions in Debt, Many Never Even Logged In
The fallout from Captain Cook College’s actions was severe. Roughly 5,500 affected consumers were left with VET FEE-HELP debts totaling over $60 million. The shocking truth? Most of them never finished any part of their course, and about 86% never even logged in online! These were legitimate debts incurred from a VET FEE-HELP scam. Thankfully, the government eventually canceled these unfair debts for affected Captain Cook College students.
ACCC Chair Gina Cass-Gottlieb highlighted the severe impact: “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.” This demonstrates the human cost of the VET FEE-HELP scam ACCC is fighting against.
Accountability Extends Upwards: The ACCC’s Reach
Parent Company and Former COO Also Penalized in VET FEE-HELP Scam ACCC Case
The Federal Court’s judgment wasn’t limited to just Captain Cook College. It also imposed significant penalties of $10 million on Captain Cook College’s parent company, Site Group International Limited (Site). Blake Wills, Site’s former Chief Operating Officer, was also ordered to pay $400,000. Both were found to be knowingly involved in the unconscionable system of the VET FEE-HELP scam.
Adding to the penalties, Mr. Wills has been banned from managing corporations for three years. This decision follows two unsuccessful appeals by Captain Cook College, Site, and Mr. Wills against the findings of unfair conduct. The ACCC’s persistence in this VET FEE-HELP scam ACCC case underscores their commitment to consumer protection.
Ms. Cass-Gottlieb expressed satisfaction with the outcome: “We are pleased with this outcome which sends a message to all businesses, including those seeking to obtain government funding, that they must comply with the laws which protect consumers. The judgment also shows the ACCC’s determination to pursue individuals in appropriate cases.”
(For more details directly from the source, see the official ACCC media release: Captain Cook College, Site Group and Blake Wills to pay total penalties of $30.4 million for unconscionable conduct towards students)
A Broader History of the ACCC’s Fight
The ACCC's Ongoing Battle Against Educational Exploitation
This isn’t the first time the ACCC has tackled such issues, highlighting a concerning trend of the VET FEE-HELP scam. In June 2020, Ian Cook, the former CEO of Captain Cook College, admitted his involvement in the unconscionable conduct. He was disqualified from managing corporations for three years and ordered to pay $250,000 in penalties, another facet of the VET FEE-HELP scam ACCC has uncovered.
Captain Cook College, established in 1998, was acquired by Site Group in 2014 and stopped significant trading at the end of 2016. Site and several of its subsidiaries entered voluntary administration in March 2025, and administrators have now been appointed. This indicates the severe consequences for companies involved in the VET FEE-HELP scam.
The ACCC launched legal action against Captain Cook College, Site Group, Ian Cook, and Blake Wills in November 2018. Over the years, the Federal Court has consistently upheld the findings of unconscionable conduct, even after multiple appeals, reinforcing the VET FEE-HELP scam ACCC has been diligently investigating.
The ACCC has also secured judgments against other educational colleges involved in similar scams, including Unique International College, Empower Institute, Australian Institute of Professional Education, and Acquire Learning. They also achieved record penalties of $438 million against Phoenix Institute of Australia Pty Ltd and its marketing arm. These cases collectively paint a picture of widespread issues with the VET FEE-HELP scam.
Understanding VET FEE-HELP and Its Abuse
What Was VET FEE-HELP and How Was It Exploited?
VET FEE-HELP was an Australian Government loan program designed to help eligible students pay for their tuition fees for higher-level vocational education and training (VET) courses, specifically at the diploma level and above, offered by approved providers. It was a noble initiative intended to provide access to education.
However, as evidenced by the numerous cases the ACCC has pursued, the program became a target for unscrupulous operators. These entities exploited the funding mechanism, leading to what the ACCC has effectively termed a VET FEE-HELP scam. The program was eventually replaced by VET Student Loans starting from January 1, 2017, in an effort to address some of the vulnerabilities that led to these widespread abuses.
What to Do If You Have Invalid Debt
Don't Let Illegitimate Debts Haunt You!
If you believe you still have invalid VET FEE-HELP debt or have been affected by similar unfair practices, resources are available to help. The VET FEE-HELP scam ACCC has fought against has left many in a difficult position, but there are steps you can take.
As of January 1, 2024, the Commonwealth Ombudsman has a multi-step process outlined in this PDF document [link to relevant Commonwealth Ombudsman PDF, e.g., on their VET FEE-HELP page]. It’s up to you to start the process, but it’s well worth it to clear your record and remove the burden of illegitimate debts.
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