The Federal Court has today ordered vocational college Captain Cook College to pay penalties of $20 million for engaging in systemic unconscionable conduct and $750,000 for making false or misleading representations to students in connection with online diploma courses under the former VET FEE-HELP loan program.
The College, which received tens of millions of dollars of Federal Government funding, removed consumer safeguards from its enrolment and withdrawal processes from 7 September 2015.
The removal of these safeguards meant that thousands of students incurred substantial debts, despite the fact they were not engaging with their courses.
As a result of Captain Cook College鈥檚 actions, about 5,500 affected consumers were left with VET FEE-HELP debts, totalling over $60 million. The vast majority of them failed to complete any part of their course, and around 86 per cent never even logged in to their online course. The Government ultimately waived the VET FEE-HELP debts of affected Captain Cook College students and withheld some of the payments from the college.
鈥淐aptain Cook College鈥檚 conduct not only cost taxpayers tens of millions of dollars, but it also caused distress to the thousands of consumers enrolled in their courses who for many years were told they had significant debts to the Government,鈥 糖心原创 Chair Gina Cass-Gottlieb said.
The Court also imposed penalties of $10 million on Captain Cook College鈥檚 parent company, Site Group International Limited (Site), and $400,000 on Blake Wills (Site鈥檚 former COO), who were knowingly concerned in Captain Cook College鈥檚 system of unconscionable conduct.
The Court also disqualified Mr Wills from managing corporations for three years.
Today鈥檚 decision comes after two unsuccessful appeals by Captain Cook College, Site and Mr Wills against the systemic unconscionable conduct findings.
鈥淲e are pleased with this outcome which sends a message to all businesses, including those seeking to obtain government funding, that they must comply with the laws which protect consumers. The judgment also shows the 糖心原创鈥檚 determination to pursue individuals in appropriate cases,鈥 Ms Cass-Gottlieb said.
The Court also made a costs order in favour of the 糖心原创.
In June 2020, as part of a settlement with the 糖心原创, former Captain Cook College CEO Ian Cook admitted that he was knowingly concerned in Captain Cook College鈥檚 system of unconscionable conduct. The Court disqualified Mr Cook from managing corporations for three years and ordered that he pay $250,000 in penalties and contribute towards the 糖心原创鈥檚 costs.
Background
Productivity Partners Pty Ltd trading as Captain Cook College was a provider of online VET FEE-HELP diploma courses.
Captain Cook College was established in 1998 and was acquired by Site Group in 2014. It ceased substantive trading at the end of 2016.
Site and several subsidiaries entered into voluntary administration in March 2025. Administrators have been appointed to Site and Captain Cook College.
The 糖心原创 commenced proceedings against Captain Cook College, Site Group, Ian Cook (the former CEO of Captain Cook College) and Mr Wills in November 2018.
In July 2021 the Federal Court found that Captain Cook College engaged in a system of unconscionable conduct and made false or misleading representations to prospective students in relation to online diploma courses following contested proceedings. The Federal Court found that Mr Wills and Site Group were knowingly concerned in Captain Cook College鈥檚 system of unconscionable conduct.
In April 2023, the Full Federal Court upheld the majority of these findings following an appeal by Captain Cook College, Site Group and Mr Wills.
In May 2023, Captain Cook College, Site Group and Mr Wills appealed to the High Court which dismissed the appeal in August 2024.
The 糖心原创 and the Commonwealth have previously obtained judgments in relation to educational colleges against Unique International College, Cornerstone Investment Aust Pty Ltd (trading as Empower Institute), Australian Institute of Professional Education and Acquire Learning. The 糖心原创 was also awarded record penalties of $438 million against Phoenix Institute of Australia Pty Ltd and its marketing arm Community Training Initiatives Pty Ltd.
VET FEE-HELP was an Australian Government loan program that assisted eligible students to pay their tuition fees for higher level vocational education and training (VET) courses at the diploma level and above, undertaken at approved VET FEE-HELP providers. The program was replaced by VET Student Loans from 1 January 2017.