Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Thanks for the warning

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASG has been in trouble before for false statements:
www.asic.gov.au/asic/asic.nsf/byheadline/04-276+ASIC+acts+against+misleading+conduct+in+the+sale+of+education+benefit+funds?openDocument

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Hi i am considering joining ASG for my kids, and i am concerned if they will deliver their promise in terms of paying back during secondary school, and tertiary, does anyone have experience, eny advise welcome

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I would immediately contact the FOS to look into this for you. Their service is free to you Sophie; ASG will have to pay around $3000 though.
This is an insurance policy and the FOS are expert lawyers who are used to 'going through fineprint'. Additonally you may be entited to claim interest from the date ASG should have originally settled your claim; some Insurance Acts allow this - the FOS will be able to advise you.
www.fos.org.au/centric/home_page.jsp
GOOD LUCK!

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Well, that makes sense.
www.pdfqueen.com

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Yes, I have some bad experience as well. Their rep dissapeared after I paid for my child's membership. Repeated contact with ASG has done little. Thanks Jay for mentioning about FOS. I am going to contact ASG one more time and I understand I have 45days for them to provide me a satisfactory response.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I have been a member of ASG for 11 years and have started receiving benefits back for my daughter. I have been very pleased with the service provided and any queries I have had were answered promptly. I do not understand what the importance of the rep disappearing is? You don't deal with the rep once a member, you deal with the office which has a 1800 number for member services. It is also unlikely in any company that a rep will still be there 12 years on!
When I became a member I read the PDS which is given to you upon joining. Every detail of my membership was clearly indicated so I really don't understand why the lady whose husband died should need clarification. My friend's husband died several years ago and she has been receiving all benefits for her son as per the PDS. I think it is very easy for people to criticise something when they don't fully understand it. Just read the information before you join if you are unsure - it is all there in black and white as per the legal requirement. I could not support ASG enough and I am very grateful to be receiving my annual cheque.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Thanks Jenny. We had a rep out few weeks ago in Perth and really impressed by her knowledge. Had 2 kids of her own and her experience showed. Not pushy and gave us time to think about the best options for us. Have joined now $10 per week and recommending to friends.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

My parents set up an ASG fund for my brother and me when we were little and I have been getting cheques for my uni studies and HECS fees as well. I am in the third year of a double degree and am very grateful to ASG. My parents also received cheques for our secondary schooling which paid for private school. I have heaps of friends who LOVE receiving ASG cheques! lol

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I have been extrememly disappointed by ASG, whilst fortunately no family member has passed away the annual payout in years 4 and 5 (year five cheque received today (for 2011) the amount provided is less than half that indicated in the "certificate of membership". Whilst I acknowledge the fine print says it's an estimate, the estimate appears to have been made more attractive to entice membership. Sure we have gone through a period of low returns on deposits, however this happens frequently, I think it is irresponsible to quote returns based on above average cash rates. I have written to ASG, who have all the correct excuses... I would not recommend them to anyone, and would have made more money putting the money in the bank, and using it to offset the mortgage.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

We have also just received this year’s cheque. The last 4 years have been within a dollar of the certificate of membership amount, this years is $1200 lower. Someone has really screwed up on their investment portfolio. I'm curious though, over all the years of financial prosperity I never received a cheque exceeding the certificate amount.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

My wife is pregnant and my friend tells me to Join up with ASG. One of the main things he keeps telling me is that it is government guaranteed.
Can anyone tell me if this is true or false as I can find no mention of this on their website. ?

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Very dissapointed. We had our child in the scholarship for just over 17 years. Has gone to UNI, and we have received the first cheque for $500 for the whole semester (approx 4-5 months), where the est payments was to be approx $600 paid monthly which is the reason in joining to ensure covering some of the expenses in the future. Even given that it's only an estimation at the time we joined, there is major short falls in the return. Called ASG to ask for the final value of the scholarship, they are unable to give the figure for the three years the payments are to be paid, responses "it's pooled,.. with deferring / leaving students.. the second semester may be more". Yet they came up with a nice round figure for the first check and was able to estimate the scholarship value in the first instance. Invest in other options for your child, a good accountant may suggest the best tax wise option. At least you'll know the final outcome for your child and have the control to ensure the best as you see best, even if they don't go to Uni may have a good helping start which under ASG you forfeit the interest ASG earned off your contributions. Government-guaranteed doesn't garantee the childs return payment as we found out.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASIC publications "Publications" -> Media Centre -> 2005 & earlier.-> 04-276 ASIC acts against misleading conduct in the sale of education benefit funds
"ASG was ‘government-backed’ or ‘like a bank’, when neither statement was true".

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Our son is in his final year of school and intends to go to Uni next year. Our certificate indicates our contribution will be around $9000. and the return for our son will be 15000. over 3 years. A total benefit of $24,000.
I rang ASG to querry the "Child Pool" amount on my statement, as it was only $1500, and was told that the benefit for my child may be as low as $500 per year as they had invested only in cash for many years and received a negative return. I didnt think a "balanced fund" only invested in cash. I dont remember cash deposits having a negative return either!
There were many excuses as to why they could not give me a more accurate figure. They were not even able to tell me how many children were in my child pool. In the end I have no idea whether our investment will make a reasonable return, or when I should expect the first payment. My alarm bells are ringing!

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Husbands Parents did this, we received maybe just over $1000 total over the period of his tertiary education, we are now faced with paying off his uni fees for the next 5 years out of his income and we are a single income family. His parents were given charts showing that it should well and truly cover the costs of his Uni fees. Big mistake, they got ripped big time. His brother didn't even go to uni so with that money down the toilet, I'd say it was a pretty bad investment. Maybe we'll sue, if there's a case.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I have twin daughters who are in first year uni. We took out ASG scholarships for each when they were a couple of months old. Our member certificate predicted each child would receive a "projected benefit" of $607 a month over three years of uni. We did understand we'd only get our contributions back if they did not go on to tertiary study. So now both are at uni and each received a cheque for $500 in Semester 1. That was all. When we rang we were told they were sorting out how may kids would be in the "pool" and they would get another cheque in Semester 2. I asked how much and was told that going on figures from previous years it was likely to be anywhere from $500 to $1200 depending on the pool. My girls each just received a cheque for $1110. So if they get the same for each of three years that will equal $4830 each. Our certificate gave a "projected benefit" of a 3 year total of $16 384 each. So we've received about a third of the projected benefit.
While I understand that the past few years have been difficult for investments, most of the years my girls were enrolled were boom years. So if not a deliberate scam, I would say ASG are tremendously incompetent money mangers. The only good thing going for it is as an enforced savings plan for those with no other financial skills. And we were able to draw on our member benefit in the last year of school to pay for tutoring. Otherwise I think you can get better returns for your money.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Please beware! We also took membership for two children with ASG under the belief that we would have our members benefit paid to us when our child/children began uni & that they would receive a healthy scholarship. After many years of making payments on time every time, our first child has received a first semester payment of $500 with the same story of a second semester payment reliant upon what is in the pool. This however is not the worst of it. ASG have made it very difficult for us to receive payment of our member benefit & trying to find accurate information has been difficult to say the least. As this money is actually our money I am wondering about the legalities of their behaviour. I am also left wondering about still making payments for child number 2, as apart form the disappointing financial result ASG have been really difficult to deal with. If you can set up your own "uni fund" for your child & have some investment know how I would say that you would probably be better off financially doing so & to be honest save yourself the hassle.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I can only imagine there will be more negative comments this year. Our cheque has just arrived for the 2012 year and it is less than 50% of the predicted amount. This is our 5th year with the fund and we are only now seeing a return on our investment. I wouldn't recommend this as a financially stable way to save for a Childs education. Of course the response from ASG is more of the same as previous responses. I would also be interested if the legality of what was promised during our initial consultation. I to will need to sit with a calculator to decide if is worth continuing with our tertiary fund, unlikely I would imagine.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Hi, I had the same problem as Sophie, my husband passed away last year and am now receiving half the benefit I was promised by the rep,

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Hi my husband passed away 2 yrs ago.
I had thought that ASG would continue the contributions, but to be honest i don't think we actually took it out for death cover reasons. However what I was told was is if you take the insurance option you don't pay any further contributions. They apparently lend you the money ie put the contributions in for you so you get the same interest that you would have got if you had continued, minus the lent money. So you only get your contributions back plus interest on that, plus interest on the lent contributions. I'm due to recieve the 1st yr 7 cheque hopefully shortly so we'll see what the amount is.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

My wife recently passed away and I have found it very difficult to extract any information from ASG about what happen to the all the money she has given them over the last have been 11 years,I can only get a balance and some payment details. They have made payments by cheque but as far as investing money goes a term deposit would have be a much better option even allowing for any tax benefits. Their "bonus" payments have been negative, about -5% for the last three years so the more money you invest at the moment in the more you loose. Being concerned about the negative returns I asked ASG what the money was invested in, so I could make a considered decision about whether to keep contributing. First I was told they are "mutual fund" which is not quite correct they are an unlisted public company. Secondly I was told that the money is pooled as an explanation of how the money is invested. This of coarse tells me nothing so why are they so cagey about how the money invested? Thirdly how do you make a loss over over the last several years with a so called balanced fund. Balanced funds should be at the very worst be making modest profits over this time and considering that they are making losses why are they still recruiting salesmen that are euphemistically called Councillors. Although I have no evidence I'd bet these councillors are not telling their new customers there is a very good chance that their investment will most probably be worth considerably less in another few years and their money would do better in the bank. It also worries me that what we get paid now is coming out of what we will get in future as the losses being made now are not sustainable so if the economy doesn't pick up the money will eventually run out before on average we get back what we have put in. Investing in anything is difficult at the moment but when one doesn't know what you are investing in its impossible to decided what risks you are taking. So we are totally reliant on a few people on the ASG investment committee who as far as I can tell aren't particularly note worthy for there economic insight. This leaves me in quandary; if I withdraw now I will only get what we put in, a considerable loss allowing for inflation (about 18% I'd guess), If I don't withdraw and wait for the pay out when my son goes to Uni in a few years I'll get the investment amount which could be 20% more or so if the economy pick s up. But if ASG keep losing money at their current rate we could end up with bugger all. Probably the wise thing in to do my case considering ASG's lack of openness is to withdraw the money and invest it in bond/term deposit. A least then I can be certain I'll make a profit and wont have to pay "all the "counsellors", directors and tea ladies etc.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

confusion appears to be the weapon of choice of ASG. DO NOT USE THEM WITHOUT FIRST SEEING A QUALIFIED FINANCIAL ADVISER AND CONSIDERING YOUR OPTIONS. With the benefit of hindsight we would have been better off using simple roll over term deposits and rely on good ol' compound interest. I mean really how can ASG say the members funds supposedly invested in cash make a negative return ! Where did they invest members money, Zimbabwe ! I guess we all got lured in on promises of grand returns on certificates that were never going to materialise with or without a GFC occuring, or Houdini like smoke and mirror trickery. This was not the best of investments, and unlike Australian Shares my ASG benefits will not make a comeback. Very very disappointing experience. A lesson though that I have passed on to numerous people at work who have young children.
Nothing can alleviate the pain and loss emotionally and financially of a spouse dying or diagnosed with a life limiting illness. With 20:20 hindsight vision when you have children the main income earner needs to consider taking out /increasing personal insurance cover and the stay at home partner needs personal insurance to a lesser extent perhaps to say around the equivalent of at least one years salary benefit cover. I wish I had done the latter. Nothing makes up for the personal loss but if you are under 40 these sort of personal insurance covers provide peace of mind to cover mortgages/school fees / outstanding loans etc. Would I use ASG given what I know now, no there are better options.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I can only agree with the negative comments above .Do Not use ASG.A 50% return over 18 years is pathetic. The projected $16000 dollar scholarship return has turned into about $4800 over 3 years ( And that's if the 2nd and 3rd year payments are the same as 1st year)

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

A few comments from me. Firstly I'm familiar with ASG on the basis that a close friend worked with them (in the head office) for a number of years, and yes, it is something I do for my kids too.

Firstly, Sophie...I'm very sorry to hear that your husband passed. That's awful for anyone. My understanding is that your comments for everyone are a little misleading though. The 'insurance' should the primary income earner pass on relates to the children's 'Scholarship' ie, the interest earned on your savings, which goes to the kids when they enter tertiary education. That they receive, but you don't receive money over the high school years, which is the return of your savings, as you haven't actually made those savings. At least that is my understanding. So while you make it sound like a negative, I tend to disagree. Our kids have money to help with their tertiary studies which they otherwise wouldn't have!

My second comment relates to returns. Simply by googling, I can note that all those receiving cheques or scholarships from about 1997 to 2007 were very happy/no complaints/returns as predicted etc. However those receiving returns from 2008-2011 are the ones saying they were ripped off/lied to etc. Doesn't anyone else find that a little funny given they were the years the world witnessed the greatest financial disaster since the great depression!! I mean what do you expect?? The PDS, which I have right in front of me says ASG aims to produce market matching returns over the long term...I can actually see that in 2008 the fund dropped 4.6%. My super fund dropped 16.1! Although I must admit it was a growth fund. My point is though that those posting comments above need to have a little perspective me thinks. I appreciate that things haven't turned out as expected, and that really is a shame, but to sit there and blame ASG given what the world experienced over the last few years is probably a little unfair.

My final comment relates to their reps, or counsellers. My understanding is that their reps are paid no wage and rely solely on the one off establishment fees that families pay when they enroll. All the costs they incur in visiting families are their own (petrol/time etc) This has both advantages and disadvantages. The upside is that your savings aren't going to paying wages.
The downside is that therefore they are incentivised to enroll you and as individuals some dubious individuals may not be as honest as the organisation expects them to be. Personally I don't think the organisation is necessarily to blame, but more so the rep should be the one to complain about. And I'm sure the organisation would be only too happy to hear about reps who were making false statements. At the end of the day, the organisation has legal requirements to uphold and I'm sure they'd like to know if particular individuals were making the organisation as a whole look bad.

Anyway, they're just my thoughts on a few things, but having a little more knowledge on the organisation than the average person, I hope it helps a little.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Oh and the other thing worth mentioning I think is that I'm led to believe the first year of tertiary payments are always the lowest. Because the benefits are divided equally each year between all members in the pool, the payment is lowest in year one because there are always more members in the pool. In years two & three, many have dropped out or deferred etc, so the amounts are usually decently larger.

Re: Cheque from Australian Scholarship Group took months...does anyone have similar experience?

Having read an article fr Barefoot INvestor,i decided to surrender my 5yr old's ASG policy in Nov 2011...which was taken in 2008.I submitted my paperwork in early Nov and expexted the cheque to arrive shortly.I called in ASG to enquire abt cheque around 25 Nov and they said that it would arrive shortly.I left for holidays on 1Dec and back on 1 Feb, checked thru the mails and no cheque...I called ASG on 3 Feb and they claimed that the cheque was sent out and would process" Stop Cheque and re-issue cheque" ...I called on 17 Feb and they said that it would be the next 4-5 days to receive cheque and today, no cheque and I called ASG again...they said that it is under Management's approval. I asked to which legislation shd I make a complaint to;Operator said that maybe Financial Ombudsmen...I called FO and ASG is not a member! I called ASIC and they referred me to Fair Trading...does anyone know ?

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASG is definitely dodgy, I have just started uni and my parents have me and my three siblings in the fund (i am the first child). My dad has sent the company the information on my course several times so as that I can receive my check and they continue to claim to have not received any information and will not pay till they do. He has now sent it by email, fax and regular mail each several times, and even received automated responses to the emails proving that the email has been received. When he told this to the customer service person they then told him that they has no way of knowing/checking if the information we have sent is infact enough proof as this is dealt with by another department that is not allowed to respond to phone calls or emails and we will have to wait and see if we get something in the mail. ridiculous.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Finally got my cheque...after 22 days....after the Management looked into my case.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

Have been satisfied with ASG for secondary schooling funds, but would advise anyone to steer clear of them for tertiary plans. How can you know when your child is one year old, and you enrol them in the tertiary fund, that they are going to enrol in tertiary education (if they do not then you get your principle back but no interest from 18 years of payments). We have a daughter who did ballet school for four years and now has a job with the Australian Ballet Company. Surely this is worth not going to university for? But as she is not going on to tertiary education we get no payments from ASG, and they refuse to transfer the payments to our son, who is enrolled in tertiary education. I also share the views outlined above with regard to the tertiary payments; they are nowhere near the estimated 600 per month discussed by our initial advisor, and at the moment the paperwork required to get the funds for our son is proving monumental.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

I too am extremely disappointed in the return on my son's tertiary plan in NZ. If he does do a 3 year degree he will only get about $6000 total when we were assured he would get a scholarship of at least $21,000 NZD. As it is, he is probably not going to be doing a tertiary degree so he gets nothing and we get our principal back. I would be interested to know the percentage of scholarships that are not taken up. if this money goes back in the pool why are they not then making a better return for everyone else? Also the inflexibility of the plan is very frustrating and does not reflect the changing dynamics of tertiary education these days. Why can my son not get two thirds of his scholarship if he decides to do a two year diploma? It concerns me that we will be similarly affected with our younger two children.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASG should not be looked at as a savings fund because if your child does not enter into full time tertiary study, you won't get a cent of your interest. You will receive all the money you put in minus annual admin fees. Unless you are 100% guaranteed that your child will continue on to uni, DO NOT SIGN UP! Your child has to send ASG proof of enrolment and if it's not full time study, they won't pay up. ASG is completely inflexible and likes to follow 'rules' and allow certain courses but not others. Also, the course MUST be a 3 or 4 year course. Do yourselves a favour and put your money into a term deposit.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASG should not be looked at as a savings fund because if your child does not enter into full time tertiary study, you won't get a cent of your interest. You will receive all the money you put in minus annual admin fees. Unless you are 100% guaranteed that your child will continue on to uni, DO NOT SIGN UP! Your child has to send ASG proof of enrolment and if it's not full time study, they won't pay up. ASG is completely inflexible and likes to follow 'rules' and allow certain courses but not others. Also, the course MUST be a 3 or 4 year course. Do yourselves a favour and put your money into a term deposit.

Re: How Australian Scholarship Group are reneging on their sales promise! Have you or anyone you know experienced the same?

ASG should not be looked at as a savings fund because if your child does not enter into full time tertiary study, you won't get a cent of your interest. You will receive all the money you put in minus annual admin fees. Unless you are 100% guaranteed that your child will continue on to uni, DO NOT SIGN UP! Your child has to send ASG proof of enrolment and if it's not full time study, they won't pay up. ASG is completely inflexible and likes to follow 'rules' and allow certain courses but not others. Also, the course MUST be a 3 or 4 year course. Do yourselves a favour and put your money into a term deposit.