Need more advice

karatekid1975

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Ok all. I need more advice. I decided to leave our main dojang to go to a sister school, because it is cheaper.

Anyways, I talked to the manager of the school about my situation. This time, it is truely a financial situation (I left this school before, but for a totally different reason). I told him about my lack of funds (which is true. I have 27 cents in my bank account and my credit card is maxed). And I told him that I didn't want to stop training, and I wanted to stay in the system, so I wanted to attend a sister school. Which would be easier on my budget. And I can still get my BB, ect.

Even after all that, he still wants me to buy out my contract (I have two years left on a three year contract), which would cost me $1,000. Either payments or staight up. Where am I going to get that kind of money? I truely can't afford the tuition, let alone something like that. I am currently jobless (laid off).

I told my boyfriend and he thinks somehow the last manager screwed me by charging me $145 a month for tuition when every one else (he knows, he asked around) is paying $125 or something. And he thinks that the $1000 is wrong, too.

I don't know what to do. I don't have a dime to my name, and I really wanted to train again. There is ONE way out of it, but it's kind of drastic. I can call the billing company myself and stop the payments. (My boyfriend did this before. He called them to stop payments on a credit card to switch to other, and they didn't charge him when the school wanted $25 fee for the change if they had to do it). Then change my bank account. But if I do this, I won't be able to set foot in that dojang again, therefore never see my boyfriend train/test again. And I would still be able to train at the sister school (which the instructor is my jujitsu instructor's wife), but never test. Or do the above and go elsewhere. Or work something out with this school, get a job (or wait to get called back), and continue training here.

Help?!?!?!?!
 

terryl965

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First off if it is a true sister school then your contract should just be moved over and no buy out is needed, secondly the whole stituation sound funny to me anyway, if the instructor knows you have no money than way demand a buyout.
Leave and call the company and cancel ypour contract.
Terry
 

Phadrus00

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Laurie,

My first question is.. What does the contract that you signed say? It should clearly stipulate what are the penalties and costs of exiting prior to completion. Start with that as it defines what you are obligated to pay. If it is less than what the manager of your current school is asking then you have the ability to negotiate with him. You are looking to negotiate something where both sides "Win". Clearly you shelling out $1000.00 is not a "win" for you nor is not training a "win" for the Dojang. Somewhere in the middle should be a compromise.

Remember though they do have the right to enforce any contract that you signed. Start there.

Best of Luck,

Rob
 

Gemini

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You're in a tough spot. That's the danger of long term contracts. He may not even be in a position to cancel the contract because many times, they sell the contract to the bank, get the money up front, but no longer have the option to cancel even if they wanted to. It doesn't belong to them, it belongs to the bank. Read your copy of the contract and see what the buyout/early termination statements say. You can try to negotiate a deal, but if the bank owns it, it probably won't do you any good. They may write it off as a loan default and give it to a collection agency. Without knowing the particulars, it's difficult to say. My point is, until you know, I wouldn't necesssarily hold your instructor in contempt. He may have no say in it. I'm not big on burning bridges. Especially when they're the wrong bridges.

I wish you the best. Good Luck!
 

AceHBK

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terryl965 said:
First off if it is a true sister school then your contract should just be moved over and no buy out is needed, secondly the whole stituation sound funny to me anyway, if the instructor knows you have no money than way demand a buyout.
Leave and call the company and cancel ypour contract.
Terry

I agree with this.
If they want to come after you for the $1000 then deal with it at that time but more than likely they wont continue it b/c of the costs they will go thru trying to get it back.

Go over your contract with a fine tooth comb. I deal with contracts and if u need some help let me know.
 
OP
karatekid1975

karatekid1975

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Thanks AceHBK. And all. It's not a bank they go through. It's a "billing company." I know the company, so does my boyfriend (he delt with them before). I will look at my contract.

My boyfriend said he will talk to the manager tomorrow. I don't know if that will work, but I'll let you know what happens (my boyfriend works for a big company for 27 years, so he knows the "ins and outs." He'd be the one to do it).

But I don't really think there's anything I can do, unless AceHBK has ideas. Please help.

I'll post more tomorrow night about what went down from my boyfriend talking to him.
 

tshadowchaser

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No advice on the contract I have never signed one with a schoo; and i don't use them.
My only thought is your instructor is an ***
 

Jonathan Randall

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I had a teacher (TSD) let me out of a contract when I was layed off during the 1991 Recession. On the other hand, I think he carried his own contracts at the time and simply had to take it off his own books. If your teacher sold it to a bank, it may be out of his hands. Given that he has a ready made figure for you, I think he probably DOES have a say in it, though. In any case, you've been unhappy there for sometime so it is time to leave.
 

rmclain

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At my school I use a billing company(D & S Acceptance, Inc. in San Dimas, California) to handle payment on the programs. They are a billing company and collection agency. Ultimately, they work for me and will not "go after" a student agreement unless I tell them to do it.

I've had students run into difficult times with finances, health, many things. If they have a reason to quit, I understand and let them go. There are more pressing things in life to deal with than to worry about paying tuition for martial arts training (a luxury). When their lives get better they can come back and train.

Instead of talking with the "manager" of the school, speak with your instructor. The instructor will be more understanding than someone on the business side of the school.

If they don't let you out - As a backup arguing point, you could request that they simply "freeze" your billing, then "unfreeze" it when you return to training.

R. McLain
 

Rich Parsons

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karatekid1975 said:
Ok all. I need more advice. I decided to leave our main dojang to go to a sister school, because it is cheaper.

Anyways, I talked to the manager of the school about my situation. This time, it is truely a financial situation (I left this school before, but for a totally different reason). I told him about my lack of funds (which is true. I have 27 cents in my bank account and my credit card is maxed). And I told him that I didn't want to stop training, and I wanted to stay in the system, so I wanted to attend a sister school. Which would be easier on my budget. And I can still get my BB, ect.

Even after all that, he still wants me to buy out my contract (I have two years left on a three year contract), which would cost me $1,000. Either payments or staight up. Where am I going to get that kind of money? I truely can't afford the tuition, let alone something like that. I am currently jobless (laid off).

I told my boyfriend and he thinks somehow the last manager screwed me by charging me $145 a month for tuition when every one else (he knows, he asked around) is paying $125 or something. And he thinks that the $1000 is wrong, too.

I don't know what to do. I don't have a dime to my name, and I really wanted to train again. There is ONE way out of it, but it's kind of drastic. I can call the billing company myself and stop the payments. (My boyfriend did this before. He called them to stop payments on a credit card to switch to other, and they didn't charge him when the school wanted $25 fee for the change if they had to do it). Then change my bank account. But if I do this, I won't be able to set foot in that dojang again, therefore never see my boyfriend train/test again. And I would still be able to train at the sister school (which the instructor is my jujitsu instructor's wife), but never test. Or do the above and go elsewhere. Or work something out with this school, get a job (or wait to get called back), and continue training here.

Help?!?!?!?!


Well the TKD guy I know and receommend has contracts. If someone comes to him and is leaving then he let them. This avoids all the negative press for being a Jerk, if you will excuse my words, about a contract.

Yet, here is issue, he knows you want to train. He knows you want to go to a cheaper school, so this means less money for him, but you seem to be able to come up with the money for someone else. Even though it may be a sister school.

I personally would not be very happy with them. But that is me and not you or anyone else.

Tell him that if you have to pay it you might as well train it. But since you do not have the money, that means you cannot train. That also means that you will not be a happy customer and give negative recomendations in the future. To some they do nto care, they are trying to pay their bills, and summer time can be rough if the local area the kids drop out for the summer.

If he turns it over to a collection agency then he gets to hurt your credit.

So, how much is it worth to him and to you?

Is having a negative mark on your credit and causing an issue with buying a car or house in the future worth it to you then walk away.

If it is worth it to him to have you mad and upset and not being a good advertisement.

I would talk to him again and ftry to negotiate a better solution.
 

ajs1976

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I recently needed to take a break for family reasons. When I talked to my instructor he did not have a problem, but said I would need to talk to the billing company.

Seems like my contract was actually with the billing company and not my school. They did put a freeze on my account, but only until August, not October like I asked. I'm not upset with them, but I will not be signing any long term contracts in the future.

Make sure to read through the contract carefully before deciding on what you are going to do.
 

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