Don't be a victim of a bogus training scheme

Don't be a victim of a bogus training scheme
We explain how to spot the worthless courses and secure funding for the legitimate ones
David Budworth
Victims of Britain's jobs crisis are being duped out of thousands of pounds by dodgy training providers that offer worthless qualifications that carry no weight with employers. Retraining courses that claim to provide the skills and qualifications needed to secure a new job have become big business as unemployment has soared above the two million mark.

But people who are out of work or trying to improve their job prospects are being warned to take care before handing over money, after Citizens Advice reported an alarming rise in scam training courses.

Susan Marks, of Citizens Advice, says: “We have seen cases where people have paid course fees only to discover that the college does not exist, goes bust or cannot be contacted. In other cases, either the course or the qualifications promised failed to materialise. These scams are particularly despicable in the current economic climate, when so many people are being made redundant and are desperate to carve out new careers.”

The scams uncovered by the investigation cover careers as varied as IT, plumbing and healthcare. They appear to be respectable, with internet sites that often mimic those of legitimate training providers. Some have even been advertised in Jobcentres.

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Alice Judd, of Which?, the consumer organisation, says: “Billions of pounds are lost to scams every year. The fraudsters are very inventive, so it is easy to be duped, especially if you are feeling desperate.”

Not all of the schemes are run by fraudsters who take the money and disappear. Others are simply of poor quality, fail to deliver the qualifications claimed or are mis-sold to people who cannot benefit. But whether they are set up with criminal intent or not, the impact on the innocent victims can be devastating.

One 25-year-old man, who asked not to be named, was persuaded to take out a career development loan to pay the £4,400 fees for a plumbing course. When he embarked on the scheme he found that it was poorly prepared and run and did not provide the skills he needed. By then it was too late to claim a refund. Ms Marks says: “He missed out on the plumbing qualification he was aiming for, is still out of work and bitterly regrets that he did not do more research to ensure that he got on a proper, accredited, course. He has been left with the burden of repaying a large loan with no job prospects in sight.”

In another case, a woman on disability benefits signed up for a two-year internet course on web design. The course promised all sorts of support that never materialised. To make matters worse, the course was cancelled before she had completed it. Though she was offered a refund of £1,200 on course fees of £3,950, she has still been left with a large debt and no qualification.

By the time people realise that they have been misled, they have usually lost the right to a full refund. Most courses demand that the fees are paid upfront, and pressure-selling tactics may be employed to encourage people to hand over their money. Some rogue providers will even turn up at people's houses to seal the deal. They often demand the victim's bank details, opening consumers to the danger of identity fraud.

Although consumers have cancellation rights, Citizens Advice says that these are inadequate and confusing. Courses sold over the phone or internet are covered by the Consumer Protection (Distance Selling) Regulations 2000. The cooling-off period, during which you have the right to cancel for any reason, ends only seven working days after you sign up or when the service starts, if earlier. For doorstep selling, the cooling off period is seven calendar days.

Ms Marks says: “By the time you realise that the course does not exist or that the teaching is not up to standard, it is usually too late.”

Legitimate providers may offer longer cooling-off periods. This should be spelt out in the terms and conditions that accompany the application form. If it is not, contact the provider and establish the time limit and how to obtain a refund.

There are some other basic steps that you can take to protect yourself. First, try to find out out as much as possible about the course provider and make sure that you at least have an address and landline telephone number that works. “A PO Box or mobile phone number is not enough,” Ms Judd says.

If the course claims to offer a qualification, check that the course is accredited with the relevant body - City & Guilds, for example. Chris Atkin, of Total Electrical Training, the training organisation, suggests that you also request references from previous students or, better still, go along to meet existing students.

Finally, never give bank details until you are convinced that the course is legitimate.

If you think that you have uncovered a scam, report it to your local Citizens Advice bureau, which will look into your claim and, if necessary, report the organisation to the Office of Fair Trading, which has the power to shut down and fine organisations that are operating training scams.

The Department for Work and Pensions, meanwhile, says that it will take action if it discovers that a scam is being advertised in a Jobcentre. It says: “All training providers we work with have to undergo rigorous checks before they can provide training on our behalf, to ensure that they provide a first-class service for our customers. Some Jobcentres have space to display job-related information, including information about training, from other organisations. If any customers have concerns about a programme, they should immediately notify an adviser and we will investigate.”

Before you embark on a course, make sure that it will be worthwhile. Ask potential employers what they think of a course or qualification and whether it will make them more likely to hire you. Alternatively, you can obtain free advice from the government-backed Careers Advice Service. Its telephone helpline (0800 100900) is open seven days a week. The service's website, at careersadvice.direct.gov.uk, also provides useful advice about the financial help available to help you to retrain.

Career Development Loans of between £300 and £8,000 are available to fund up to two years of learning. That is extended to three years if your course includes one year of work experience.

The loans, which are offered by Barclays, the Co-operative Bank and Royal Bank of Scotland, are interest-free while you study. However, a fixed rate of interest is charged from one month after the course ends. The typical rate on a Barclays Career Development Loan is currently 7.4 per cent.

Most of the banks also offer their own specialist loans for retraining. For example, the Professional Trainee Loan from NatWest allows customers studying full-time to borrow up to £20,000 - £25,000 for law courses - at a fixed rate of 7.9 per cent or 3.3 per cent variable. Repayments can be delayed until six months after your course is completed, and you have ten years to repay the debt.

Anyone who is retraining as a social worker, teacher, dentist or doctor may be able to submit an application for a non-repayable bursary from the Government. You have to be studying an approved course to qualify for this type of funding. Your university or college will be able to tell you if your course is eligible.

Other job-related scams

Homeworking - You see an advert claiming that you can “earn £2,000 a month” working from home. The catch is that before starting any work, you have to pay an administration fee. After you have coughed up, you find that there is no work to do or that you will not be paid for work done.

Pyramid schemes - You pay to become a member and are promised large commission earnings if you recruit others to the scheme. If enough new members join, the pyramid grows, possibly making money for some members. But when new members dry up, the pyramid collapses.

http://www.timesonline.co.uk/tol/money/consumer_affairs/article5946123.ece