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Daymar College to pay more than $12 million to settle Ky. AG's consumer protection lawsuit

By Emily Moore | Oct 5, 2015


FRANKFORT, Ky. (Legal Newsline) - Daymar College has agreed to pay $12.4 million to settle a consumer protection lawsuit brought by Kentucky Attorney General Jack Conway.

The lawsuit, originally filed in 2011, alleges the Owensboro-area college violated the Kentucky Consumer Protection Act by: denying financial aid for students to buy books from bookstores outside of Daymar’s bookstore; misrepresentation of transferring credits; hiring faculty who did not have appropriate credentials; and admitting students who failed the admissions assessment.

"This settlement with Daymar will provide much-needed relief for past Daymar students and protection for students considering enrolling in Daymar in the future," Conway said in a statement.

"This settlement ensures that future prospective students are provided with accurate and factual information about Daymar's degree programs and a risk-free trial period that we hope will become a model for other schools."

Despite settling, Daymar denies the attorney general's claims.

The settlement requires the college to pay $1.2 million to the Attorney General's Office. It also is required to forgive $11 million in debt owed by students who attended between July 3, 2006 and July 26, 2012.

In addition, the college is required under the settlement to follow policies on admissions and document exceptions, hire credentialed faculty members and revisit the policy on prices of textbooks.

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