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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.

American Career College Class Action Lawsuit Legal Help

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Published on May-30-12


READER COMMENTS

Posted by

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I JUST WANTED TO RESPOND TO ALL THE PEOPLE WRITING ON THIS POST. I AM AN ACC STUDENT AND ABOUT TO GRADUATE, I KNEW FROM THE VERY BEGINNING THAT THEY DONT “PROMISE YOU A JOB”. THEY WILL HELP YOU WITH RESOURCES AND RESUMES BUT WHEN YOU GRADUATE, ITS UP TO YOU TO DO THE LEG WORK FOR EMPLOYMENT. YOU NEED TO READ ALL THE FINE PRINT WHEN YOU SIGN PAPERS. ACC IS A FAST PACED SCHOOL THAT PREPARES YOU FOR YOUR STATE EXAMS AND BOARD TEST, ITS NOT EASY BUT IF YOURE NOT PREPARED AT GRADUATION, THATS ON YOU. AS IS THE STUDENT LOAN DEBT YOU’VE ACCUMULATED. STOP PLACING BLAME AND BE A GROWN UP.

Posted by

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I went here in 2009/2010. I wish I hadn’t as I am now in debt with nothing to show for it not even my diploma as they said I still owed them money and would not receive it. They never helped to find me job placement. They never offered me addition resources and training to raise my chances of getting hired. I am in debt by a fraud school and need help getting rid of it because they do not deserve this money as they did NOTHING to help educate me or find me a job which is what I paid for.

Posted by

on
I graduated in 2003. I had the worse time trying to find a job after school. I knew this school was a shame. How can I get my money back!?

Posted by

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I attend this school in 2012, graduates from the DMS program, didn’t even recieved my certificate/ diploma became they said I needed to pay my loan first. I wasn’t able to take the exams for my specialty for personal reasons and up to this day I don’t even work or can work in that field because the school is close so there’s no record of me even finished my education there, I’m only stuck with a big debt of $18,000 which is ridiculous. If there’s still an ongoing lawsuit please please contact me I would very much like to be part of it. It is not fair that we get to be stuck with debts of an education we can’t even prove existed or even count to get a job.

Posted by

on
I am a former student of American Career College I graduated in 2011 and I've been having difficulties receiving jobs through the medical field. I was never provide a job. I believe that I was not provided the correct test for doing Surgical Tech. I'm stuck with $24,000 loans now and I'm unable to pay I'm out of work and no one will hire me because they require to have a coding certificate but since I only have a diploma No one will accept it. American Career College had promised their students

Posted by

on
I went to ACC in 2002. they signed me up for financial aid. I remember but yet I am stuck with a $9,220.22. I need help

Posted by

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I am a former student of American Career College I graduated in 2014 and I've been having difficulties receiving jobs through the medical billing and coding I was never provided a coding certificate I believe that I was not provided the correct test for doing coding I don't know why they include coding on the medical billing side and now I'm stuck with $21,000 loans now and I'm unable to pay I'm out of work and no one will hire me because they require to have a coding certificate but since I only have a diploma of medical coding No one will accept it. American Career College had promised their students that they will be getting paid anywhere from 14 -$35 an hour and I have three years of experience in medical billing now and I can't even reach what I was expected or promised.

Posted by

on
I am also a former student of American career college Anaheim . I graduated with honors and perfect attendance . The school never helped me to find a position in the field that I studied as they stated they would when I signed up . I have yet to secure a position and it has been over 5 years. I am constantly harassed to repay loans and I can't repay because I can't find a position . While attending American career I went through 3 different instructors in a 6 month period ! Please feel free to contact me for more information.

Posted by

on
I am a victim of American carrier college too... Christine Davis, Catalina Ortiz, Mary Solano, Christina Chavez.... this is not a lawyer site, we need to find a private lawyer and i got one, if you like we can fight together against this school because we are not the first ones w this humongous bill and problem... i studied fo Medical Billing and Coding class 2016/17 and when i ask to help me to find me a job, they told me they cant do that because i didnt have the right education for that specific position, ( coder )..
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!!

Posted by

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Would like to speak with a representative regarding my situation

Posted by

on
I was a former American Career College student. I was basically defrauded out of my money they promised a career in the field that I was training for but soon after my internship was done and I did not get my certificate and wasn't allowed to attend graduation. I was told I needed to pay them in order to attend graduation and get the certificate of completion. I have not paid them the remaining balance due since I cannot afford it and feel they mislead me. I was not able to find a job in the field I was promised at American Career College and now am being harassed by them to pay them. I'm in the process of filing a class action against them for CONSUMER FRAUD. On Facebook site there is many unsatisfied students who are still currently in the same situation that I am in.

Posted by

on
2012 I Graduated Once They Were Paid I Was No Longer Helped At All.

Posted by

on
I also attended career college of America in South Gate ca. I took a paralegal course in 2002. We never had help to find jobs placements. I'm still paying. The bad thing I could not use my credit to go back to school.

Posted by

on
I was a former American Career College student. I was basically defrauded out of my money they promised a career in the field that I was training for but soon after my internship was done they told me they could not help me any further due to the fact that I was not bilingual. I am still currently paying on school loans for a field that I am not able to join. I am not the only person on their Facebook site there is many unsatisfied students who are still currently in the same situation that I am in.

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