Class action launched as another unaccredited degree revealed

Fresh class action as top college accused of deceptive conduct for running unaccredited degree

In short:

The International College of Management Sydney is being sued by former students whose degrees lacked professional accreditation, despite claims in promotional material.

The college has blamed "an administrative oversight" and will defend the Supreme Court proceedings.

The students' lawyer say higher education regulators need to ensure universities live up to their promises to students.

A leading private college has been accused of misleading and deceptive conduct in a Supreme Court class action by students who were shocked to discover their degrees were not professionally accredited.

Lead plaintiff Tessa Coddington initiated the lawsuit against The International College of Management Sydney (ICMS) after reading an ABC News article about other accreditation class actions launched against three public universities last year.

"These are pivotal years of your life, and [the ordeal has caused] so much financial strain," Ms Coddington said.

"To take, like, a pay cut is one thing, but to delay your career is another."

Ms Coddington accrued a $45,000 student debt to complete the three-year ICMS Bachelor of Property (Management, Valuation and Development) degree she graduated from in late 2022, an investment of time and money she has come to regret.

She was shocked to discover after graduating the degree was never accredited with the Australian Property Institute (API), which she said left her unable to progress beyond an entry-level graduate role in property valuation, or have her qualifications recognised overseas.

"I was like, 'What do you mean this property degree doesn't get me what it says it does?'"she said.

Ms Coddington said it took years of emailing with ICMS for her to confirm the degree had never been accredited, after employers raised concerns about her degree. Over that time, her anxiety grew.

ICMS representatives initially said they were still seeking accreditation from API, which has not been accused of any wrongdoing.

It was only in December last year that the API confirmed the degree had not met its standards and the college's accreditation application was rejected.

In March this year, Ms Coddington commenced a diploma at Deakin University to gain accreditation, which involves studying the same subjects again.

"I shouldn't have to do this. My original degree should have been enough," she said.

"It's been a huge burden, emotionally, just to prepare yourself after a full day of work to go and study more and do a 7pm lecture.

"It's exhausting and … it feels like the hurdles just keep moving."

The students are seeking compensation for their distress, their HECS debts and costs of further study.

'Administrative oversight' blamed

ICMS declined a request for an interview but in a statement said students were not "materially affected" by promotional material on its website that wrongly claimed the course was accredited with API.

ICMS said this incorrect claim was made in 2024 and removed in 2026.

"ICMS identified one recent news article on its website, which stated that the degree was accredited by the Australian Property Institute," an ICMS spokesperson said.

"That statement occurred due to an administrative oversight and was immediately removed once identified. "

The college said it reported its "oversight" to the higher education regulator, the Tertiary Education Quality and Standards Agency (TEQSA), and removed the article earlier this year.

ICMS said it "denies the claims being made against it", and that it would defend the class action and had met its legal obligations.

"ICMS is not required, by TEQSA or any other regulator, to hold separate course accreditation or recognition with any professional valuer bodies," the spokesperson said.

"Working as a property valuer in NSW does not require a degree accredited by such a body, and obtaining certification from them is an optional professional credential."

ICMS said its degree was recognised by the Australian Valuers Institute.

It added a disclaimer to its website earlier this year to clarify the degree did not have professional accreditation for property valuers.

The college also said the degree had a full-time employment average above the national average, according to a long-running survey of university graduates.

Ms Coddington said even with the disclaimer, high school students choosing a course would be unaware of the ramifications.

"What I struggle to understand is how ICMS can still offer this degree and call it a Bachelor of Property (Management, Valuation and Development)," she said.

International student spent $100k on degree

Mauritian international student Yuvarassee Moothoosamy, who has also joined the class action, was shattered by the lack of accreditation.

She estimated the degree cost her $97,000, plus tens of thousands extra for accommodation in Sydney, with her parents going into debt to fund her studies.

"There was a bit of guilt because I already spent that much money and my parents paid it all … some of it was a loan as well," she said.

Ms Moothoosamy said she was furious she would need further study to gain professional accreditation to work as a valuer.

"I'm in a completely different career path now. I do want to get back at some point … because I eventually do want to do [property] valuation," she said.

"For the moment, I have to find something else to be able to have a life and pay bills."

Without the resources to study further, she is now working in hospitality.

"I wouldn't say I was sad, I was quite angry with the whole thing and felt quite used. Because as an international student, I think it was just a money grab."

ABC investigation revealed hundreds of careers in limbo

Ten students have already signed onto the ICMS class action, but lawyers expect those numbers to grow as they identify other students.

Last year, ABC News revealed 160 students from a University of Newcastle engineering degree and 115 from a Western Sydney University master's had started separate class actions after a similar lack of accreditation curtailed their careers.

ABC News understands the University of Newcastle class action may reach a settlement as soon as the end of this month.

Mediation in the Western Sydney University (WSU) class action is continuing. WSU declined to comment.

Twenty-seven students from James Cook University also reached a settlement in a fourth Supreme Court class action last year over an unaccredited financial services major.

The cases have all been run by Australian Law Partners, which said TEQSA needed to be "on top of its game" in ensuring representations to students were accurate.

"The federal regulator has a critical role to ensure compliance with the threshold standards," solicitor Duke Myrteza said.

"Without that oversight … students are exposed to potential hardship through enrolling in courses that don't offer the outcomes that are represented to them."

Mr Myrteza declined to comment on the regulator's performance but noted there were a "significant" number of claims alleging higher education providers had not met threshold standards in federal laws.

In a statement, TEQSA said providers were required to provide students with "accurate and current information" about accreditation status.

"Where a course is intended and advertised as meeting professional accreditation requirements, the necessary accreditation must be in place," a spokesperson said.

"If it is not, TEQSA expects the provider to identify any students who may have been disadvantaged and take appropriate action to remediate any adverse impact on these students."