Fair Consumer Practices And Complaints

(1) All institutions and their administrative personnel, instructors, agents, and other staff shall act in accordance with fair consumer practices. Fair consumer practices means honesty, fairness, and disclosure to students in areas including, but not limited to, class schedules, recruitment, admissions, contractual agreements, student financial assistance, obligations to repay student loans, placement assistance, job placement rates, advertising, refund policies, the meaning and recognition of different types of accreditation, the transferability of the institution’s credits to other postsecondary institutions, and competitors. (a) Institutions shall ensure that nothing is hidden and all verbal and written representations by the institution are accurate. (b) Fair consumer practices require an institution to apply its policies as written. The student shall be subject to the written policies in place at the time of the student’s initial enrollment into the applicable program. Any changes to the written policies that occur during the student’s period of enrollment shall only be applied to the student if the student signs and dates a document acknowledging the new policy and agreeing that said policy shall be applied to the student. (c) As applicable, verbal and written representations must reasonably allow enrolled or prospective students to make informed decisions concerning their investment of time or money and provide information needed to understand, evaluate, and comply with institution policies and program requirements. (2) Students have a reasonable expectation to complete programs as printed in the institutional catalog at the time of enrollment. (3) Institutions may not use mandatory arbitration provisions. (4) Findings by Commission staff and/or ongoing complaints by current or prospective students that show a pattern of misinformation, misrepresentation, lack of disclosure, or discrepancies AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS between verbal and written information, intimidation, or coercion may require corrective public announcements in addition to adverse action as set forth in Rule .22 of these rules. (5) An institution must report to Commission staff in writing within thirty (30) calendar days any unresolved written complaint filed in a Tennessee court about the institution of which the institution is knowledgeable. (6) Institutions may provide a discount for cash payments provided: (a) The institution has a written policy in the catalog that includes the definition of cash and details the qualifications for receiving and the amount of a cash discount; and (b) The student verifies receipt and understanding of the policy in the pre-enrollment checklist. (7) An institution may award a scholarship, tuition waiver, or other similar award provided: (a) The eligibility requirements for the offering, including terms, conditions, application procedures, due dates, basis for selection, and amount to be awarded, are clearly defined in writing; (b) The institution has a form and procedure to verify eligibility; and (c) The amount of the award is a flat dollar amount or subject to calculation using a defined formula or scale. (8) Any person claiming damage or loss as a result of any act or practice by an authorized postsecondary educational institution or its agent that is a violation of the Act or these rules, may file a verified complaint on forms provided by the Commission. Any student who files a complaint or on behalf of whom a complaint is filed must first exhaust the grievance process at the institution. Parties to the complaint shall be the complainant and any named institution or agent thereof. The investigation and further review of written complaints will occur in accordance with the following provisions: (a) Complaints shall be signed and submitted as provided for in Rule .24 of these rules. (b) Any complaint as described in subparagraph (a) shall be commenced within three (3) years of the subject student’s withdrawal from or completion of the program or course of enrollment. (c) Any named institution or agent will receive a copy of the complaint and be provided an opportunity to respond to all allegations contained in the complaint. (d) Any named institution or agent shall provide all information requested by Commission staff as part of the investigation. (e) As part of the investigation process, Commission staff may work with the complainant and the named institution or agent to effectuate a resolution. (f) When resolution is not reached and if, based on all the evidence obtained through the investigation, Commission staff finds that any person, agent, group, or entity is, is about to, or has been violating the Act or these rules: 1. Commission staff may recommend that the Executive Director take action as provided for in T.C.A. § 49-7-2010 and § 49-7-2017 and these rules. Parties to AUTHORIZATION AND REGULATION OF REGULARLY AUTHORIZED CHAPTER 1540-01-02 POSTSECONDARY EDUCATIONAL INSTITUTIONS the complaint shall be provided an opportunity to show cause why such recommendations should not be forwarded to the Executive Director. Such opportunity shall detail the basis for the findings and provide any party ten (10) business days to respond. 2. The Executive Director shall act on a recommendation from Commission staff after the time for the show cause response has expired by providing a Notice of Decision to the parties to the complaint. Such notice shall explain the right to a hearing and review by the Commission as provided in T.C.A. § 49-7-2012. Any request for review shall be filed with the Commission within ten (10) business days of the date of the Notice of Decision, otherwise the action of the Executive Director shall be deemed final and no further review available. Any request for review shall be in writing, signed, and provide a detailed explanation of each alleged error with references to specific statutes or rules. A request may be denied if it is not received in a timely manner. (g) When resolution of the complaint is not reached and if, based on all the evidence obtained through the investigation, Commission staff makes no findings or determines that an adverse action recommendation is not justified: 1. Commission staff shall provide the parties to the complaint notice of the lack of findings or determination. 2. If, upon written notification of any action taken by Commission staff, an aggrieved party to a complaint desires a review by the Executive Director, the party shall notify the Executive Director within ten (10) business days of the date of the action of Commission staff, otherwise the action of Commission staff shall be deemed final and no further review available. Any request for review by the Executive Director shall be in writing, signed, and provide a detailed explanation of each alleged error with references to the Act or these rules. A request may be denied if it is not received in a timely manner. 3. If, upon written notification of any action taken by the Executive Director, an aggrieved party to the complaint desires a hearing and review by the Commission, pursuant to T.C.A. § 49-7-2012, the party shall notify the Commission within ten (10) business days of the date of the action of the Executive Director, otherwise the action of the Executive Director shall be deemed final and no further review available. Any request for review by the Commission shall be in writing, signed, and provide a detailed explanation of each alleged error with references to the Act or these rules. A request may be denied if it is not received in a timely manner. (h) Any party to the complaint aggrieved or adversely affected by any final Commission action may obtain judicial review of the action as provided in T.C.A. § 49-7-2012. (i) A complaint investigation may be placed on hold or closed if litigation or investigation involving similar issues is on-going at any court or other government agency. (9) Notwithstanding the provisions of paragraph (8) of this rule, Commission staff may take appropriate action to investigate any complaint or suspected non-compliance in order to protect the public interest.