NSW Ultimate Forex Trading Course - Is an 85% Cancellation Fee Legal?

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CDS

Member
3 March 2015
1
0
1
Hi there,

I've been to a free seminar on 5 Feb and at the end of that session, I was offered this company's 2-days coaching/training at a special price. They said the Forex Trading course is normally $12,000, offered to me at $4,995, offer only available on that day. At that time I advised them that I have to review my financial situation, but I paid $500 deposit so they keep a spot for me and this offer open until I advise whether I can or cannot attend. So I gave credit card details so they could draw the $500. They said this is fine, that I can cancel my registration at any time. They registered me for the latest seminar they had available at that time, 29/30 April this year.

On 27 Feb I sent them email advising I cannot attend their training and to cancel my registration. I gave two reasons, financial and time constraints (training has to be put in practice if someone does it, but then can't find at least 5 spare hours per week to apply that knowledge, then the training is useless and money paid was wasted).

I would have thought that with over 60 days notice, they would have enough time to find another person to replace me on their April session.

Their reply to my email is below. I must admit I didn't pay enough attention to some words on the paper I signed on the 5th of Feb when I gave the credit card details.

What is intriguing is that the terms seem too contradicting. For example, this sentence "You have no right to cancel after 5 calendar days of signing this agreement and any remaining balance of the Tuition Fees are payable in full." is in contradiction with the later one stating "If you cancel on or from the 6thday from the date of agreeing to these Terms and Conditions and by four (4) weeks before the Start Day of the Event, we will retain a 85% cancellation fee of the total price and refund any remaining Tuition Fees paid."

So you can't cancel after 5 days but you can cancel. And is this cancellation fee legal? Is it normally this high? My other questions are:
- are they allowed to draw the rest of the money for the course (i.e. $4,495) from my credit card in these circumstances under the Australian Consumer Law?
- given my cancellation notice, and if I don't attend their course, can they still lawfully take/claim my money?
- are their terms and conditions legal under Australian consumer law? I thought a contract cooling off period is normally 30 days.

Here is their reply:

"According to the enrolment form that you signed on 5/2/15 you agreed to the following terms and conditions:

11. Enrolment Policy

11.1 Cancellation of an Event must be received in writing to us at Suite
501, 132 Arthur Street, North Sydney 2060 NSW by recorded delivery
(“a Cancellation Notice”). If we receive your Cancellation Notice on or
before the 5thCalendar Day from the date of agreeing to these
Terms and Condition signing this agreement and no Events which
entail coaching sessions have been booked and/or taken, you will
receive a full refund of Tuition Fees paid. You have no right to cancel
after 5 calendar days of signing this agreement and any remaining
balance of the Tuition Fees are payable in full.”). If we receive your
Cancellation Notice on or before the 5thCalendar Day from the date
of agreeing to these Terms and Conditions you will receive a full
refund of Tuition Fees paid. If you cancel on or from the 6thday from
the date of agreeing to these Terms and Conditions and by four (4)
weeks before the Start Day of the Event, we will retain a 85%
cancellation fee of the total price and refund any remaining Tuition
Fees paid. The cancellation fee is calculated with reference to our
expenses in securing your place at the Event (s) You have no right to
cancel four weeks prior to the Start Day and any remaining or
outstanding balance of the Tuition Fees are payable in full. If you fail
to attend the Events as scheduled without our prior written consent
you will not be entitled to a refund of any part of the Tuition Fees.
You further note that where there are multiple elements to be
provided within an Event, that you are unable to cancel any
individual aspect of the Event.
11.2 Save as set out above, cancellation or termination of this agreement
shall be without prejudice to any rights which have accured prior to
such date. The rights and obligations contained in clauses8and9
shall survive any termination or cancellation.
11.3. Where applicable re-sits of all Events are subject to availability. You
may only book one re-sit per Even at a time.
11.4 Knowledge To Action reserves the right to place all outstanding and
overdue accounts to a debt collection agency.

As we received your request to cancel on 27/2/15, unfortunately you are not entitled to a full refund. We would still love to have you on the course! We have so many exciting things planned for you which I know you are going to love!
However, if you do still wish to cancel, I would like to offer you two alternatives. Firstly, I could push out your Ultimate Forex coursedate until mid next year. Secondly, if you find a third party that would like to take your place I can accommodate a name change but all finances must be settled externally by yourself and the third party.
I look forward to hearing from you with a response on the above options.
If you have further queries please do not hesitate to contact the office."
 

Ivy

Well-Known Member
10 February 2015
498
87
789
Hi there,

If you are concerned that the company will debit further money from your account, I suggest that you contact your bank and notify them that there will be an unauthorised transaction coming out. They will probably cancel your card and reissue another. However do note that you will still need to resolve this issue otherwise the company may try to make a claim against you to recover the debt.

Here is a link to the Australian Consumer Law document on unfair contracts for you to look at: http://www.consumerlaw.gov.au/content/the_acl/downloads/unfair_contract_terms_guide.PDF

There is also more succinct and easy to read information on unfair contract terms on the ACCC website: Unfair contract terms | ACCC

I suggest that you contact the NSW Office of Fair Trading and ask for their advice and then go from there. Contact us - NSW Fair Trading