The Significance Of Ashford Settlement

By Margaret Turner


In early twenty fourteen, Iowa State entered into an agreement of voluntary compliance with Ashford University and Bridgepoint Education incorporated. The deal was pushed by the state attorney general in conclusion of a case filed against the two institutions. The state charged them with the violation of consumer fraud act with respect to how they did their student recruitment and enrollment processes. They both denied the allegations and refrained from claiming any liability or wrongdoing. They however agreed to come to an agreement in a bid to resolve all issues rose in the inquiry. This is the Ashford Settlement.

With the accusations leveled against them, the two institutions became very defensive. They were accused of, among other things, intentionally withholding important information needed by students to make informed decisions and using underhanded tactics in their sales. Furthermore, they were accused of setting high fees for registration, which became non-refundable as well as misleading candidates during enrollment to online courses.

Even though the institution denied all the allegations and refused to take responsibility, they agreed to come to a settlement in a bid to conclude the inquiry and pending case against them. They were ordered to pay about seven and a quarter million dollars to victims. His was specifically in response to allegations that recruiters of the university often lied to progress their agenda of increasing recruitment numbers. It was reached after about three years of close investigations.

The settlement had the following conditions and terms. The institution was strictly prohibited from making deceptive, false and misleading statements. Furthermore, it was ordered not to permit any omission of materials that could cause confusion or engage in some underhand practices to coercion to persuade students to enroll. All these were clearly stated in the agreement.

They agreed to make all information and future correspondence clear and transparent. They also are required to train all personnel well to ensure they are qualified to teach. In addition, they should take all the required steps of ensuring student retention in a legal manner. Furthermore, they are required to fully compensate a third party that was vital to their recruitment process.

A settlement administrator, Thomas J. Perrelli, was appointed to oversee how the process was being handled by the school. His work was to review the compliance of the school to the terms stipulated. He enjoys certain and privileges like listening in on recorded voice calls, look at complaints and review them, go through any records relevant to his investigation and talk to any employee or student both past an present. He effectively sees if the agreement is working and any successes it has had.

The Agreement has some provisions that allow the reimbursement of funds to students. The reimbursement will be processed and picked at the office of attorney General. The administrator lacks any powers and authority that allows him to authorize reimbursement as well as other payments. He has no involvement whatsoever in this matter.

Many institutions are taking advantage of the increased demand for education by Americans. Today, education is seen as one of the most important aspects of life. It empowers people to become economically viable. With the increased number of educational institution, competition has increased tremendously. Unfortunately some schools are using underhanded methods to get ahead this settlement is a win not only for the victims of Ashford University but the whole education system as well.




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