Stay up to date with information about COVID-19. Click here
Press Release

AG Shapiro: For-Profit Schools Will Pay for Deceiving PA Students

May 22, 2019 | Topic: Consumers

AG Announces 60-Day Restitution Window for Former American Beauty Academy Students after Abrupt Closure without Proper Notice

HARRISBURG — Attorney General Josh Shapiro is today announcing a 60-day restitution window for eligible former students of the American Beauty Academy, Inc. D/B/A American Beauty Academy Lancaster. The for-profit esthetics, cosmetology and barber school permanently closed its Lancaster campus in November 2015 following the withholding of Title IV funds by the United States Department of Education. The school allegedly misled its students into believing they would have an extended Thanksgiving break, when in fact, the school was permanently closing its doors.

“American Beauty Academy’s sudden closure left students in limbo about their futures and cheated out of hard earned money that they paid expecting to receive an education in return,” said Attorney General Josh Shapiro. “I encourage anyone who has been harmed by American Beauty Academy’s closure to file a claim within the 60 day restitution window. My Bureau of Consumer Protection will continue working hard to hold for-profit schools accountable when their business practices are not cutting it for the students they are supposed to serve.”

One consumer, Saundra Rollason, of Susquehanna Township, paid the school $6,212.50 for instruction hours for her granddaughter that she never received. Additionally, she purchased a kit for her granddaughter’s education that was only half provided by the school. Rollason filed a complaint in the hopes of recovering $6,787.50 in restitution.

“I paid American Beauty Academy thousands of dollars with the expectation that they would deliver on their promises to give my granddaughter a quality education,” said Rollason. “Instead, they deceived us and cheated us out of our money—and my granddaughter did not receive the certification she was promised from them. I’m grateful to the Attorney General’s Bureau of Consumer Protection for holding the school accountable and working to get our money back.”

Pursuant to the Assurance of Voluntary Compliance, the school and its owner are permanently banned from engaging in any trade or commerce concerning or relating to the provision of educational services, and have agreed to pay $8,788.09 in restitution and costs. There is a 60 day window for students who believe they have been a victim of the school’s deceptive business practices. Students may file a complaint with the Bureau of Consumer Protection at www.attorneygeneral.gov or contact the Bureau of Consumer Protection at 800-441-2555 or scams@attorneygeneral.gov.

# # #