Attorney General Jack Conway Wednesday filed suit in Daviess County against the owners and operators of Daymar College over allegations the for-profit college violated Kentucky's Consumer Protection Act. The lawsuit alleges that Daymar Learning, Inc., Daymar Learning of Paducah, Inc., Draughons Junior College, Inc., Daymar Colleges Group LLC, Daymar Holdings, Inc. and the president of these companies, Mark Gabis, violated the Consumer Protection Act by engaging in unfair, false, misleading, and deceptive trade practices.
The attorney general's investigation of Daymar College predates the announced investigation into six other for-profit colleges in December 2010. Conway's concerns about the for-profit college industry stem in-part from his investigation into Daymar College and investigations of Decker College and the American Justice School of Law. He also continues to lead a national bipartisan effort, which now includes 19 states, to examine potential abuses within the industry.
The attorney general received information in 2008 that Daymar College was preventing students from buying their textbooks and supplies cheaper from other sources. The allegation prompted the attorney general's office to issue subpoenas and civil investigative demands to Daymar College in 2009 and 2010.
The attorney general's investigation concluded that Daymar College had been engaged in a sophisticated practice of deceiving and misleading students about their textbooks and financial aid so that students would be forced into purchasing books and supplies from Daymar College at prices substantially higher than other vendors. The complaint alleges that the defendants' actions also amount to an unlawful restraint on trade.
Additionally, Conway alleges that the defendants provide false and misleading information to students about the transferability of credits earned at Daymar College. In addition to telling students their credits will transfer, the complaint alleges that the written information Daymar College provides to students about the transferability of credits omits the material information that credits are not likely to transfer to other schools.
The complaint further alleges that some of the programs offered at Daymar College do not meet the standards of its institutional accrediting organization and that Daymar has enrolled some students who do not meet the school's criteria for admission or general standards for admission to career colleges. This increases the likelihood that a student will withdraw from the program, be unable to pay the debt they incurred while attending Daymar and be unable to get a job in their career field.
According to information available from the U.S. Department of Education, Daymar Learning, Inc., with the exception of one other school, currently has the highest default rate of any Kentucky-based school.
Daymar College campuses or learning sites in Kentucky are located in Owensboro, Louisville, Albany, Bellevue, Madisonville, Scottsville, Paducah, Bowling Green, Russellville, and Clinton. There also is a Daymar College online program. A Daymar College campus was previously located in Newport, Kentucky.
Persons who have information about Daymar College are encouraged to contact the Office of the Attorney General at 1-888-432-9257 or by e-mail studentcomplaints@ag.ky.gov.
