New York Attorney General Eric T. Schneiderman has filed a lawsuit in Albany County Supreme Court and has obtained a temporary restraining order against The College Network and its owner, Gary Eyler.
The suit charges that The College Network and Eyler induced prospective nursing students to pay thousands of dollars for ineffective study guides through false and deceptive business practices. The suit alleges that The College Network, headquartered in Indiana, preyed on as many as 2,000 New York consumers who sought to obtain associate degrees in nursing.
In addition, the lawsuit names Franklin, Tennessee-based Southeast Financial Credit Union (“Southeast”), which partnered with The College Network to provide financing to consumers to purchase The College Network’s so-called “program.” According to the complaint, Southeast until the Fall of 2014 provided the bulk of the loans to The College Network customers.
In fact, the complaint notes that many customers were not aware that the loans were from a credit union and did not discover this information until long after signing the loan documents.
The complaint states that Southeast was aware that The College Network had defrauded many customers.
The complaint notes that Southeast was informed by many customers that they were misled by The College Network and was asked by customers that their financial agreements be cancelled and Southeast stop automatic monthly payment deductions.
The complaint alleges Southeast falsely advised customers that that they were obligated to pay their loans in full, although customers did not receive services or products they purchased.
The lawsuit seeks to permanently prohibit Southeast Financial Credit Union from attempting to collect debts connected to the alleged misconduct.
Read the lawsuit.
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