Cosmetology students scammed by school owner

Cosmetology Students Get Scammed by School Owner

Entering beauty school with the hope of a great education and, ultimately, debt-free graduation can be an exciting and optimistic time. But what happens when that dream turns sour and students are left paying for services that were not delivered? A recent case of cosmetology students getting scammed by their school’s owner has opened some eyes to the potential risks associated with such a situation.

It all started in 2017 when Lynne Osterman, a cosmetology school operator in Arizona, enrolled hundreds of students in her “debt-free” school program, claiming that they would receive a full cosmetology education without any additional fees. Unfortunately, the plan was all smoke and mirrors as those enrolled in the program soon discovered that Osterman had taken the “debt-free” part of her pitch literally, as the students were required to pay out of pocket for most materials, supplies and even tools. And even more disappointing is that after they paid the tuition in full, they discovered that the program was not accredited and they would not be able to become licensed cosmetologists.

The truth was eventually revealed in April 2019 when Osterman was accused of fraud and misrepresentation and ordered to repay the students who had been duped. It was determined that while Osterman had indeed raised the tuition, she misleadingly misrepresented it as a “debt-free” program and used deceptive marketing tactics to seduce innocent consumers into trusting her.

In the end, the outcome was far from expected as the students had to pay large sums of money for something that was not provided. But the story does provide a strong reminder about the importance of researching any schools before making a commitment.

In order to protect yourself from scams similar to the one Osterman perpetrated, it is important to thoroughly investigate the school and make sure it is accredited by the proper agency, such as the National Accrediting Commission of Cosmetology Arts and Sciences (NACCAS). You should also read any contracts carefully before signing and be wary of any programs that are too good to be true.

Above all, it is essential to understand your rights as a consumer and to trust your instincts if something seems off. As former Arizona Attorney General Tom Horne said in a statement, “The law protects consumers from fraudulent and deceptive practices, and my office will continue to do so.”

In the wake of this unfortunate incident, it is essential for future cosmetology students to be proactive and informed in order to avoid becoming victims of similar scams.