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Chester Career College To Pay $5M in Student Loans Class Action Lawsuit Settlement

This is a settlement for the lawsuit.

Richmond, VA: A $5 million settlement has been approved in a financial consumer fraud class action lawsuit pending against Chester Career College, formerly known as Richmond School of Health and Technology. The lawsuit alleged that the for-profit college practices predatory lending practices affecting thousands of students, primarily African American students, while offering sub-par education.

Chester Career College purportedly offers classes leading to careers in nursing, massage therapy and other medical-related fields, and specifically targeted inner city students with ads on hip-hop stations and other media aimed at their demographic. According to the lawsuit, the college enrolled "almost exclusively" students who qualified for federal financial aid, primarily in the form of student loans.

The settlement, approved by US District Judge John A. Gibney, will also see the school reimburse more than 4,000 students and for attorneys' fees and requires Chester Career College to institute changes that will provide prospective students with "much more transparency" before they enroll. Further, the settlement also provides for continued tracking of students and career placement "to strengthen the school" and its educational mission as it moves forward.

The settlement covers students enrolled at the school from July 2004 through February 2013. Students who qualify for claims will receive settlement notices by mail. Any money left unclaimed from the remaining funds in the escrow account after one year will be donated to nonprofit organizations dedicated to assisting the economically disadvantaged.

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Published on Jul-29-13


Posted by

Chester Career College is up to it devious behaviors again. This time they are not certifying student that are veteran properly for their matriculation/enrollment in the massage therapy program and maybe other programs as well. These incompetent practices have been brought to the attention of the highest levels of the schools faculty, staff and administration. The institution has not properly been audited by Virginia’s Department of Veterans Affairs (DVS)/State Approving Agency. These enrollment infractions probably extend to dates before findings of the last class action law suite levied successfully for 5 million dollars on behalf of students and awarded in 2006. The amount of underpayments to Veterans for Basic Allowance for Housing/BAH is theft that is unknown currently. Fiscal audits and compliance surveys by the Department of Veteran Affairs/DVA education branch is the only way that this travesty can be revealed. Veterans need legal representation.


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