For-Profit College to Pay $13 Million in Lawsuit

What protections exist for consumers who enroll in a for-profit degree school?  According to a jury in a recent case — the law is on their side!

A Missouri woman who thought she was enrolling in the medical assistant’s (MA) program at Vatterott College — a for-profit school  — sued the school when she discovered after a year of coursework and $27,000 in loans, that she had, in fact,  been enrolled in the medical office management program.  Many of her credits did not transfer to the MA program.  Read more about the case in an article in the Kansas City Star.

The jury found that the school was in violation of  the Missouri Merchandising Practices Act (MMPA).

The MMPA, a consumer protection law, states:

407.020. 1. The act, use or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerce or the solicitation of any funds for any charitable purpose, as defined in section 407.453, in or from the state of Missouri, is declared to be an unlawful practice.

“Consumer protection is a cornerstone of our legal system,” says Herndon attorney Doug Landau.  “The individual must be afforded protection against larger, for-profit entities, and Vatterott certainly falls into that category.  Getting into significant debt in order to pursue an educational track for a specific career is quite a different scenario than the general liberal arts education at a 4-year university.  I applaud the jury in this case for a fair application of the Missouri law, and I hope that its actions send a clear message that deceiving consumers will not be tolerated, especially in the context of higher education.”

If you or someone you know has been a victim of unfair practices and there are questions as to what laws apply, email or call Abrams Landau, Ltd. at once (703-796-9555).