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American Career College Faces Class Action over Student Financial Aid
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Los Angeles, CA: A consumer fraud class action lawsuit has been filed against the American Career College (ACC) alleging it kept financial aid money for itself, for services it did not provide, instead of giving the money to students. The lawsuit is filed on behalf of all students who did not receive financial aid for housing and transportation, despite having qualified for the aid.
Lashara Leonard, the student who filed the lawsuit, claims that "ACC is a college campus institutionally accredited by the Accrediting Bureau of Health Education Schools, which has been approved to participate in the Federal Student Aid Program through the United States Department of Education."However, despite receiving federal money for students, Leonard claims the ACC keeps it for itself.
In her lawsuit, Leonard claims she enrolled in ACC, and then received a letter breaking down her tuition costs and awards of financial aid after she was accepted, but she never received any of the money. Leonard claims the college also kept the financial aid money from hundreds of other students.
"Allowing colleges to violate the financial aid laws by failing to appropriately disburse financial aid income to the enrolled students enriches the colleges by paying for services not rendered while at the same time creating a debt for students who will be newly entering the workplace,"the class action lawsuit states.
The lawsuit also alleges that the ACC catalog misleads students. For example, the total tuition for vocational nursing listed in the catalog is $33,950, though actual tuition fees are only about $18,600. Therefore, students are charged $15,000 for services they do not actually receive. Furthermore, students had no reason to believe that their tuition costs included services besides classroom instruction and campus services, the class action lawsuit states.
"Defendant ACC intended to defraud plaintiff and those similarly situated with plaintiff as evidenced by the fact that defendant ACC provided no breakdown of the $33,950 tuition; failed to advise plaintiff and those similarly situated that aid had been obtained for housing, transportation, and personal funding; failed to disburse the aid obtained for transportation, housing and personal funding to plaintiff and those similarly situated, but instead kept those funds and applied them to services ACC did not and does not provide," states the class action lawsuit.
The American Career College class action lawsuit is brought on behalf of all similarly situated students. It is seeking punitive damages and more for fraud, conversion and unfair business practices.
Published on May-30-12
Lashara Leonard, the student who filed the lawsuit, claims that "ACC is a college campus institutionally accredited by the Accrediting Bureau of Health Education Schools, which has been approved to participate in the Federal Student Aid Program through the United States Department of Education."However, despite receiving federal money for students, Leonard claims the ACC keeps it for itself.
In her lawsuit, Leonard claims she enrolled in ACC, and then received a letter breaking down her tuition costs and awards of financial aid after she was accepted, but she never received any of the money. Leonard claims the college also kept the financial aid money from hundreds of other students.
"Allowing colleges to violate the financial aid laws by failing to appropriately disburse financial aid income to the enrolled students enriches the colleges by paying for services not rendered while at the same time creating a debt for students who will be newly entering the workplace,"the class action lawsuit states.
The lawsuit also alleges that the ACC catalog misleads students. For example, the total tuition for vocational nursing listed in the catalog is $33,950, though actual tuition fees are only about $18,600. Therefore, students are charged $15,000 for services they do not actually receive. Furthermore, students had no reason to believe that their tuition costs included services besides classroom instruction and campus services, the class action lawsuit states.
"Defendant ACC intended to defraud plaintiff and those similarly situated with plaintiff as evidenced by the fact that defendant ACC provided no breakdown of the $33,950 tuition; failed to advise plaintiff and those similarly situated that aid had been obtained for housing, transportation, and personal funding; failed to disburse the aid obtained for transportation, housing and personal funding to plaintiff and those similarly situated, but instead kept those funds and applied them to services ACC did not and does not provide," states the class action lawsuit.
The American Career College class action lawsuit is brought on behalf of all similarly situated students. It is seeking punitive damages and more for fraud, conversion and unfair business practices.
American Career College Class Action Lawsuit Legal Help
If you or a loved one has suffered damages in this case, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.Published on May-30-12
READER COMMENTS
christna betlran
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i would of rather done lvn. but they didnt educate me. now im much older and wiser, i would not recommend medical Billings without coding.
i lived in riverside
drove to anaheim (another single mom with bills hello) to acc
finished with honors
was offered and externship then offered to stay full time for a insulting $8 hour. which was minimum wage in 2012 and also unlivable. so i quit and went back to the refinery. doing timekeeper for 28 an hour in 2012 and i now make more. i pay forward everyday.
D
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Kiesha Bertha
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Nancy Gutierrez
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Sandy Cheeks 2
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Quedejunea A Douglas
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Jonathan garcia
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steve allen
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linastropus-parker
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Sandy Cheeks
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Adriana
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Zac
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Jessica Hernandez
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Eric Soza
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Shavon Fletcher
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olga mariotta
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Veronica
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Kattya Stanczak
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Com and we can start something against, I also collecting signatures all around the campuses.. one person might be aint nothing, but if we work together we can win.. there's the case with Everest, ITT, and now university of Phoenix... we are not alone!!
Christine Davis
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Catalina Ortiz
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Mary Solano
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Catalina
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Christina Chavez
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