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Federal Member for Bendigo Lisa Chesters is calling on the Australian Competition and Consumer Commission to investigate training providers in Victoria, following claims Bendigo residents have been misled into incurring thousands of dollars worth of debt.
The New South Wales Department of Fair Trading and the ACCC are launching a joint investigation into training providers and Ms Chesters wants the same to be done in Victoria.
“Members of our Karen community claim they have been misled into signing up for a course they were told was free only to find out later, by text message, they had each incurred $14,000 in VET fee help debt,” Ms Chesters said. “We have a situation where enrolling students in courses can be extremely lucrative.
"If 50 students are enrolled on a course, such as the Diploma of Early Childhood Care and Education, the training provider will receive upwards of $700,000 in Commonwealth money for its delivery."
Ms Chesters said the Karen students were vulnerable because they could not read or speak English and were signed up to the course in their homes without an interpreter.
The Department of Education is investigating the matter and Ms Chesters has made a submission to the current senate inquiry into the operation, regulation and funding of private training providers.
Training provider administering the Karen students' diploma, Churchill Education, emailed Ms Chesters to tell her she was misled about the situation.
"Our company is being named adversely for training that we have never been involved in, for delivering training to students who have never been enrolled with us and for not allowing students to withdraw without financial penalty," managing director Randall Smith wrote.
"We are a family business and before you set foot in parliament to share what you have been told, we believe it is important that you understand the full facts and the truth of the matter.
"We have shared with you the same information that we have shared transparently with the Department of Education."