WA Australian Institute of Fitness - Cancellation Fee under Course Enrolment Contract?

[HayleyDePledge]

Hi Hayley,
Just to clarify, it was actually a friend of mine who found themselves in this situation and I wrote into this law forum asking for help on her behalf as you will see in the below email.

Your situation is a bit different to hers as she gave several months notice before the course started of her wish to withdraw. The email I sent is as follows, addressed to the person she had notified of her wish to withdraw and who consequently said she would have to pay 50% of the course fees:

I am writing on behalf of ***, a family friend of many years. She has brought to my attention the situation regarding the course she has enroled in with The Australian Institute of Fitness on 02/12/2014 and subsequently due to a change in her financial position, wishes to cancel. After receiving legal advice we have been told that the AIF seems to have failed to acknowledge its obligations under Australian Consumer Law which, amongst other things, protects consumers from unfair contract terms, regardless of what a contract might say. Further, we have also been advised there are a number of other issues at play here, not least of which is that the AIF appears to have imposed a 'contractual penalty' which is legally not allowed.



Due to the amount of notice given before the course is due to start I don't believe it is unreasonable to ask for the contract to be terminated with no further costs to ***. I certainly do think it is unreasonable to expect *** to pay several thousand dollars for a course she won't be attending.



I sincerely hope we will not have to take this matter further legally but due to the advice we have already received, and the large amount of money involved, we are quite willing to to do so. I am therefore appealing to your good nature and asking for a refund of her deposit paid on 02/12/2014 and agreement to cancel and not pursue, any further payments from ***. I would also ask for the matter to be resolved as swiftly as possible, as the situation is putting *** and her young family under a significant amount of stress during an already difficult time.



Thanking you in advance and kind regards,

*** (on behalf of ***)


As I said before though, the situations are different so the same laws and therefore infringements may not apply. Hopefully someone else on here may be able to give you further guidance on what your options are before you act any further.

Good luck and kind regards

Hi Tim, good news, they have sent me back this response;
Hi Hayley,
As per the condition of the agreement section 2, you are liable for the Master Trainer.
However as a gesture of good will we are willing to waive the fees and refund your deposit by cheque.
This refund will be sent to you in a maximum of 30 days.
For us to process this refund please complete the cancellation forms in which I sent to you in previous emails.
Regards, Mathew Shephard


I am just wondering what the best way to respond to this is, and whether or not I should fill out the cancellation forms (did your friend?) as they ask you to sign something again, and I am worried I am being scammed again. I will send through the forms he is requesting me to fill out and see if you think I should fill them out. Regards
Hayley

All your help is very much appreciated.

 

[HayleyDePledge]

CANCELLATION FORM
SECTION 1 INSTRUCTIONS
Preferably the form should be completed by the student; however it is not a legal requirement that the student HAS to cancel in writing. if the student does not wish to complete and sign this form, the Institute player should complete for the records during the conversation with the student.
If the student wishes to cancel because of extenuating circumstances, the student must complete the Extenuating Circumstances Validation Form.

SECTION 2 FRIEND DETAILS
First name
Address
Suburb
Phone (h)
Mobile
Email

SECTION 3 ENROLMENT DETAILS (please) COSpec (office use only)
Campus:
Method of study:  Full time  Part time  Online eCampus
Course:
 Certificate III in Fitness
Other Certificate (please indicate)

SECTION 4 REASONS FOR WITHDRAWAL
(If the reason for cancellation is for extenuating circumstances please complete and attach the Extenuating Circumstances Validation Form along with relevant documentation)

Friend No. (office use only)
Last name
State
Post code
Phone (w)
 Certificate IV in Fitness

Cancellation form 1301 V1

SECTION 5 REFUND POLICY (As per Conditions of Enrolment Agreement)
1. If you cancel during the cooling-off period you will receive a full refund including your deposit.
2. If you cancel after the cooling off period and not later than 7 business days prior to the start date of your program(s) there will be a refund of 50% of the fees for any program(s) terminated.
3. If you enrol in more than one program and cancel one of the programs, any refund payable under this Policy will be applied at the discounted price of the program cancelled.
4. If the Institute postpones a program you have selected it will do its best to offer you a place in any replacement program at a time and place which is suitable to you. If such a replacement program in not available than a refund of the fees for the postponed program will be made to you.
5. If you suffer an illness or injury which is likely to prevent you from participating in the program(s) for a period of 24 months following the scheduled completion date of the enroled program there is a right of refund but only for the unexpired period of your scheduled program(s) and subject the following conditions a) that a medical certificate is supplied describing the illness or injury and explaining it is likely to prevent completion of the program(s) during that period and (b) you authorize your medical practitioner to supply such further information as the Institute might reasonable require. (c) that the refund is to be calculated on a pro rata basis for the unexpired period of your scheduled program(s)

SECTION 6 ACKNOWLEDGEMENT AND AGREEMENT
I have read, understood and agree to the above conditions. I request to cancel my enrolment, the details of which have been provided above

Signature: Date:
Program Start Date: _________________________Cancellation Date: ________________________ 1. Full refund 2. 50% Refund 3. No Refund Other
Total Investment (as per Enrolment form) $
Total Receipts to date $
Total refund to be paid $
Credit amount* (if any) $ (*Apply to ______________________________ enrolment)

AUTHORISED BY: __________________________________(Captain / Skipper) DATE: ______________

Method of payment
 Cheque ______________________________________________No:__________  Bank account BSB: _____________________ AC: _______________________

 

[Jamesb87]

Hi Hayley

I am currently going through a similar situation with the Institute could you please email what you sent to the Institute? [ Moderator redacted - Community Guidelines]

Regards

 

[Sam93]

Hi Tim, thanks for your response, I sent them through a similar message, hopefully I will get a similar reply..
I signed up less then a month ago, and requested to cancel less then one week into the course.
These people are so terrible
Thank's again

Hi Hayley,

I am currently experiencing the same problem where i am being made to pay out my full course fee even after i have cancelled. i cancelledd aboiut 2 months into the course and and am still being made to pay $240 a month 3 months later. Can you please show me what the email was your wrtoe to them please so i can try get myself out of this situation

 

[HayleyDePledge]

Hi Hayley,

I am currently experiencing the same problem where i am being made to pay out my full course fee even after i have cancelled. i cancelledd aboiut 2 months into the course and and am still being made to pay $240 a month 3 months later. Can you please show me what the email was your wrtoe to them please so i can try get myself out of this situation

Close the bank account they are taking it out of, open a new one and make sure you have cancelled your card as well. Fill out the cancel course forms, make sure you don't sign the form though and send it to them

 

[Sam93]

Close the bank account they are taking it out of, open a new one and make sure you have cancelled your card as well. Fill out the cancel course forms, make sure you don't sign the form though and send it to them

what if i had already gone into the institute months ago and filled out the cancellation form?

 

[HayleyDePledge]

When did you request to cancel? How far into the course and how far after you first signed the contract. Thats fine if you have already filed the cancellation form and signed it it would have just been better if you didn't sign it because you then agreed to let them take money out of your account still in the cancellation form. As you would have signed this
1. If you cancel during the cooling-off period you will receive a full refund including your deposit.
2. If you cancel after the cooling off period and not later than 7 business days prior to the start date of your program(s) there will be a refund of 50% of the fees for any program(s) terminated.
3. If you enrol in more than one program and cancel one of the programs, any refund payable under this Policy will be applied at the discounted price of the program cancelled.
4. If the Institute postpones a program you have selected it will do its best to offer you a place in any replacement program at a time and place which is suitable to you. If such a replacement program in not available than a refund of the fees for the postponed program will be made to you.
5. If you suffer an illness or injury which is likely to prevent you from participating in the program(s) for a period of 24 months following the scheduled completion date of the enroled program there is a right of refund but only for the unexpired period of your scheduled program(s) and subject the following conditions a) that a medical certificate is supplied describing the illness or injury and explaining it is likely to prevent completion of the program(s) during that period and (b) you authorize your medical practitioner to supply such further information as the Institute might reasonable require. (c) that the refund is to be calculated on a pro rata basis for the unexpired period of your scheduled program(s)

SECTION 6 ACKNOWLEDGEMENT AND AGREEMENT
I have read, understood and agree to the above conditions. I request to cancel my enrolment, the details of which have been provided above
.


There is nothing you can do except speak to your bank asap, close the account and the card for that account and open a new account and card. If the debt collectors come to you, explain that you cancelled and that they are taking money out without your consent. It would be ideal for you to also fill out a Request of Cancellaton of direct debit form too, ring your bank or go into your bank. They will help you out.

 

[kmaster268]

I enroled in a Master Trainer and Fitness Business course with the Australian Institute of Fitness on the 2nd of December 2015. I paid a deposit of $750 on the same date. The total cost of the course is $10 280 and it is due to start in June 2015. In February of this year I became aware of a course that gives the same qualifications for approximately $2000 total. I emailed the Australian Institute of Fitness on the 18th of February 2015 requesting to cancel the agreement due to financial difficulties and also requested my $750 deposit back. I received a reply email stating that the terms of the contract would require me to still pay for 50% of the total course cost ($5140). The cooling off period is up to 10 days after signing of the contact during which time the contract can be cancelled for a full refund. This is all stated in the contract that I signed but it seems unfair that I would have to pay for half of the course even though I've given 4 months notice of my cancellation. I was under the impression that this was what a deposit was for. Under contract law, are they able to force me to pay the $5140?

Thanks! Your post is very useful

 

[MBright]

Hi,

While I cannot offer you legal advice on the matter, I can advise that Australian institute of Fitness is an RTO (registered training organisation) and the best way to voice your concerns about their practice is to report them to the regulating body; the ASQA (Australian Skills Quality Authority). The regulating body has the power to audit and shut down non-compliant RTO's. Working at an RTO myself, I know that questionable enrolment contracts will put them under ASQA'a microscope.

You can file a complaint at; Complaints | Australian Skills Quality Authority

 

[Fliss]

Hi Tim,

Firstly, the conduct of the Australian Institute of Fitness (AIF) here is quite appalling, and unfortunately this is not the first time that I've heard this complaint.

The AIF seems to have failed to acknowledge its obligations under the Australian Consumer Law (ACL) which, amongst other things, protects consumers from unfair contract terms, regardless of what a contract might say. Check out this resource: http://www.consumerlaw.gov.au/content/the_acl/downloads/unfair_contract_terms_guide.PDF

As well as possible infringements of the ACL, there are a number of other issues at play here including the issue of whether or not the AIF has imposed a 'contractual penalty' (which is not allowed).

You will note from that resource mentioned above that there a number of agencies who should be able to assist you in this circumstance, including the ACCC. It would be advisable for you to be proactive and contact agencies such as this, now. Hopefully, they will investigate and resolve this issue on your behalf.

Otherwise, the AIF may refer this matter to a debt collector as and when the contractual payment becomes overdue.

You will still have options if that happens, including being able to plead aspects of the consumer law as a defence.

If you need help at that stage drafting a defence, or generally, be sure to check out the community legal centres in your area.

Kind regards

I am experiencing a similar issue with the Australian Institute of Fitness. I have enroled for a course and, 3 weeks in, can no longer commit to the course requirements due to my work. I contacted the Australian Institute of Fitness to ask to please cancel the course and expected at worst to be have to pay the 50% of the course as I had completed 3 weeks. This still seemed like a waste but I could understand to some degree having to do this.

However, when I spoke to them, they said I would need to pay the course in full even if I did not complete this. As I am only 3 weeks in I believe this isn't very fair to be charged for units that I have not sat or will sit in the future. Would really love your thoughts on this if possible please?

Thanks so much