Training sales tactics under fire
Companies cashing in on new government training loans will still be allowed to use cold-calling and door-to-door sales to recruit students, the Federal Government says.
Assistant Education Minister Simon Birmingham announced a raft of new measures last week to crack down on the use of new government loans, known as VET-FEE-HELP, to students undertaking diploma courses.
The Consumer Action Law Centre said the measures did not include banning marketing companies and training colleges from going door-to-door in disadvantaged areas, or cold-calling students using details obtained from sham job advertisements.
Katherine Temple from the centre said the Government reforms did not go far enough to protect vulnerable people.
“These requirements … they don’t actually prohibit door knocking or cold-calling which is where we see a lot of the problems with these high-pressure sales tactics,” she said.
“Sales people are using these sales tactics to encourage or induce these students to sign up to courses it’s unlikely they’re ever going to be able to finish.”
Senator Birmingham said the measures that were announced, such as banning free iPads and tougher entry requirements, would be sufficient.
“I think the most effective way is to tackle the heart of the problem, and the heart of the problem is that people are being signed up to these courses for the wrong reasons,” he said.
“That will pretty much break the business model for those that engage in cold-calling or cold-canvassing or door-to-door sales.”
Acquire Learning under fire for sales tactics
Industry giant Acquire Learning is among the marketing companies that have been criticised for sales tactics.
It sells diploma and other courses for a number of major training colleges.
Before I knew it they’re saying ‘congratulations you’re doing a Diploma of Business’ and I’m thinking ‘what the heck?’
Sue, Geelong resident
Geelong resident Sue, 55, said she was desperate for work and waiting on a call from her job service provider when a marketer from Acquire Learning telephoned her.
“It was a bit confusing because I wasn’t thinking straight at the time. I’d been suffering a bit of depression,” she said.
“They wanted my tax file number, and silly me, before I realised that it wasn’t through my job search provider at all.
“All of a sudden — because they speak so quickly and everything gets rushed along so quickly — before I knew it they’re saying ‘congratulations you’re doing a Diploma of Business’ and I’m thinking ‘what the heck?'”
She was able to withdraw from the course without accruing a $20,000 debt.
Former staff have told the ABC that centres are using cash incentives for signing up students, something the company defends as normal business practice.
In a statement, Acquire said it did not cold-call and refuted suggestions it used high-pressure sales techniques.
“All our scripts are fully vetted for approval and standards of phone techniques routinely monitored by our in-house legal and compliance team,” it said.
“Any student complaint or concern regarding inappropriate selling techniques is fully investigated and resolved in accordance with our code of conduct, our provider partners’ standards and applicable regulatory standards and guidelines.”