February 26, 2016

Another reason to stay away from Trump

Vox - From 2005  to 2010 Trump offered what he called "Trump University," which was supposed to offer instruction on becoming a real estate investor.

This was a generous — and, New York officials claim, illegal — use of the term "university." Trump's institution wasn't chartered as a university; he later renamed it the Trump Entrepreneur Initiative. New York's attorney general sued Trump in 2013, saying the operation was a fraud, and former students have filed a class-action suit asking for their money back.

Trump University implied students would meet Trump himself

Trump University, which launched in 2005didn't promise a college degree. It was a series of seminars at escalating price points that purported to teach students the secrets of successful real estate investing. The "university" started with a free 90-minute seminar, continued to a three-day seminar that cost $1,495, and charged $35,000 for the "Trump Gold Elite" package, which promised personal mentorship from experienced instructors "handpicked by Trump."

At every seminar, students were told that the most valuable secrets were only available at the next, more expensive level, according to an investigation from New York Attorney General Eric Schneiderman. Students were encouraged to call their credit card companies and ask for a credit line increase, and were told it would raise their credit score. Such a request is more likely to lower your score than raise it — but the students would then be able to borrow more to pay for the most expensive programs.

The attorney general's office found that although the mentors were supposedly experienced real estate investors, Trump University didn't verify their credentials, and some had never worked in real estate or had declared bankruptcy. Some mentors simply disappeared after the three-day seminar, even though students had paid thousands of dollars for a full year of instruction.


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