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Educational Funding Company / can't cancel

1 142 Lowell Rd.Hudson, NH, United States Review updated:
Contact information:
Phone: (603) 577-4560

I signed up my son for karate. Later, due to financial hardship, we had to cancel. I was told then that I could not cancel.
Apparently the electronic payment form I signed was actually a binding contract. This was not told to me during the singing. I thought I was singing a simple authorization to charge my credit card.
Neither the school nor the collection agency they use are willing to let me out of the contract. A binding contract, for a karate school. This is absurd. I strongly recommend not doing business with either of these institutions.

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Comments

  • Li
      1st of Nov, 2008
    0 Votes

    I also had the misfortune of signing up my grandson with Ernie Reyes' World Martial Arts in Gallatin, TN. I signed a tuition contract with the understanding that I could give 30 days notice for health or location reasons. I am still battling Educational Funding Company. My grandson moved 135 miles away with his family and I gave the school and EFC a 30 day notice with a letter from the principal of the school my grandson would be attending. This was June 2008. They have now started sending me notices for collection. Even my credit card company has refused to pay them the monthly amount as they believe I have fulfilled my end of the contract. I have filed a report with the Better Business Bureau and [redacted].com. My next step is a lawyer as this has caused me great distress and undue anquish. I have always prided myself on paying what I owe. I do not owe EFC any money. I also strongly recommend that you do not sign contracts with EFC or sign up for Ernie Reyes' World Martial Arts.

  • Br
      14th of Nov, 2008
    +1 Votes

    The Educational Funding Company is Horrible! You call their customer service number on their bill 301-654-8677 and if you don't know who you are calling you can't get through. I think they purposfully do this! It says if you want to talk to the operator say yes, but then no one answers! No one picks up. The only way to get through is to try and guess an extension and hope you talk to someone. These people need to be reported to the BBB. They said we could cancle if we got approval from the new teacher in our school. Our teacher says he has called and we are still gettting payment notices. Too bad people can't learn about this sham of a company BEFORE they sign their kids up for Karate. I would never sign my kids up with this company again. Unfortunately this company is just the billing company that schools use, they really have nothing to do with Karate -- they are just a collection agency.

  • Ha
      18th of Nov, 2008
    +1 Votes

    It sounds like you weren't listening or read what you signed. To many people try to get out of what they sign up for and it is sad that people like you blame others for getting into something you never intended to committ to in the first place.

  • Yo
      20th of Nov, 2008
    0 Votes

    I have also been victimized by one of these unscrupulous McDojos. These cowardly companies misrepresented what we had signed as authorization for electronic billing and now we are stuck paying for 12 months for crap instruction.

  • An
      1st of Dec, 2008
    0 Votes

    if you can't do month to month payment's don't sign-up because they will stick it you...

  • Br
      4th of Dec, 2008
    0 Votes

    Karate or Tae Kwan Do Lessons Beware ! If your studio uses Educational Funding Company as its collection agency BEWARE. I have just finished my 6 month ordeal getting out of their system. This has nothing do to with affording or not affording the monthly fees. Our instructor was so bad he had to be replaced, this was in July of 08. The incoming instructor said that anyone who wanted to cancel would be able to cancel and get out of the agreement. My 2 daughters had left the studio before this new instructor was in place. I continued to pay my fees until October when I called my bank to stop payment on the Auto Deduction from my checking account. I then begin to get weekly letters from EFC saying I owe them money. I tried to call the phone number on the letterhead, 301-654-8677. Try to call that number and see if you get through to anyone -- you CANT!. The extension you need is 218 you will talk to Audi, which I have done many times. They tell me the new instructor said we can cancel but I still owe $174.00 ( again not tons of money but this is a matter of principle now) for September and October. I told them if the new instructor came in July and said anyone can cancel in July, and my kids haven't been attending since June, why do I owe for September and October ! $174.00 is not worth ruining my credit rating. I finally called for the 3rd time talking with Audi and they said I can get out if I pay them $159.52. They said that they have a 60 day cancellation policy. If you give them 60 days then you can cancel. I have never read this policy anywhere. I doubt it is a policy and they just wanted to get any amount of money from me as they can. IF YOU WANT TO GET OUT -- USE THEIR CLAIM THAT THEY HAVE A 60 DAY CANCELLATION POLICY. That is what Audi told me -- they have a 60 day cancellation policy. You can even reference my account to use as proof that it was allowed. My old account with them was 1658-217551. If they used a 60 day policy on me, use it on them. If you want out, give them a 60 day notice right now, and then get out!!! Put your kids in a school where the teacher collects his own fees. PS -- I told Audi that what they were getting from my $159.52 was my time posting a complaint and telling my story online to warn other people. There you have it EFC -- what $159.52 bought you. I hope it was worth it!

  • An
      22nd of Jan, 2009
    0 Votes

    I feel all of your pain! I used to work for one of these wonderful schools. They're a very highly ranked and esteemed school in EFC (they make a lot of money...). Continually honored and held high for stealing money on a regular basis. For those of you who are writing back to these complaints saying that they should read closely and pay more attention to what they're signing, keep that nonsense to yourself. I was in this business for many years and it is a very sketchy one.

    Auto-renewals for people who's contracts didn't state it...

    Year-long contracts for people who only signed up for 3 months, 6 months or 8 months...

    I've seen and heard it all. Back off and understand that these complaints are both valid and completely fair.

    Don't judge unless you've seen the corrupt system at work! Take it from me...I was part of it!

  • Pe
      30th of Jan, 2009
    +1 Votes

    Educational Funding Company are nothing but a front for a collection agency. The health club contract racket is obviously a very easy market to prey on as the contact obligations are extremely strict and do not allow for cancellation in any case other than death or dismemberment. This means that the organizations who get involved in clearing billing for health clubs and the like (martial arts studios in this case) are only dealing with the administration because of the highly lucrative bad debt that comes with a market rife with contract cancellation. Most people that start health club contracts have no idea they are binding; they assume they are paying $X per month when they are in fact financing a much larger dollar amount and paying monthly installments. When they stop attending and cancel their contract, they find they have a balance due on a product they purchased which they did not use. EFC are nothing but collection agency goons and any studio that uses them are implicitly involved in unseemly business practice. A reputable martial arts studio should have no need to use such tactics to defraud customers.

    In my dealings with EFC I was actually laughed at by the "customer service" agent and told that they had no requirement to provide an account statement or proof that the account was even open, that it was my responsibility to prove that the account wasn't. When asked to speak to a different person I was asked not to call back and hung up on. After checking the state laws governing these types of contracts I found that they are completely within their legal rights to collect payment by whatever means they have available (they are creditors themselves so they don't have to go far to ding your credit). Not only do we need to help others by cautioning them about EFC and studios that use them, we need to write our state legislators about these contract laws that clearly favor the business and put the consumer at a huge disadvantage.

  • Di
      10th of Feb, 2009
    +2 Votes

    I also had a no luck getting out of a contract with EFC or the school my husband was attending classes at. He was going to American Black Belt Academy in Leavenworth Kansas and was being placed in a class with children. There were other adults attending classes who were also beginners, and yet he was still being paired with children. We tried to tell the instructor that we wanted out of the class if he wasn't going to be placed with people his own age, and he informed us that if we left we would still continue to be charged. I tried to get EFC to let me out of my contract as well and they refused. I have paid $102.50 for the last 18 months and my husband only attended 4 months of classes. What a rip off. The people at EFC are rude, and not very business savvy. I also placed a complaint with the BBB and noticed many other complaints against EFC there as well.
    BUYER BEWARE! This company is extremely fraudulent and I will never use them or any of their affiliates again!

  • Ge
      11th of Feb, 2009
    0 Votes

    I am currenlty in the battle with EFC. Not only with them, but with the Karate School (USA Karate and Fitness in New Jersey) which never said anything about a contract, and has actually refused my certified letters to cancel this membership. I signed up my brother and myself. My brother is autistic, and his doctor said he could not have this type of activity, and I went to 2 classes before tsarting to work in NYC. Since September of 2007 i have been paying $200.00 A MONTH!!! and they refused to cancel these memberships, and now a year later they say "it is auto-renewed with increase of 5%"!!! Are you kidding me? I've been there 3 times in the past 14 months. I am going to the BBB, but does anyone know if we could all together as a class action stop this ripoff to keep happening? I've seen so many complains about this, that i am sure if we all get together we could stop this abuse.

  • Ba
      17th of Feb, 2009
    +1 Votes

    BEWARE BROOKLYN BRAZILLIAN JIU JITSU IS A SCAM! like everyone else I'm going threw the same bull with these thieves.I took the 2 week free trial then signed a contract wich would go into affect as of my next lesson, I also gave them a deposit of $395.00.I then got sick with the flu and never went back for another lesson.In other words the contract was never officially validated, I never started it!Now get this my dying brother is in need of a kidney and I am scheduled to donate one of mine to save his life.I told the school" Brooklyn brazillian jiu jitsu" the story they acted and boy o' boy can they put on an act i mean really ham it up when it comes to acting concerned almost to the point of tears GIVE ME A BREAK! They could care less about me or my sick brother all they care about is money and thats not being exagerated at all. they just kept insisting you signed the contract so you have to pay.THEY ARE OUT RIGHT LOW LIVES! I also spoke to someone named joseph who sounded like he just got out of prison very nasty @ educational funding co.he told me to fax him the documents from the hospital wich I did he then told me I just had to pay the remaining $395 and my contract would be cancelled.A hole I never started any contract and why did I just fax you a letter from columbia presbyterian hospital stating that I'm donating a kidney and won't be able to do any jiu jitsu for a while.THE SCHOOL BKLYN BRAZILLIAN JIU JITSU AND EDUCATIONAL FUNDING COMPANY should both be out of business and ashamed of themselves.I'm going to the bbb the media and small claims court to expose these sob's SHAME ON YOU!

  • Jo
      6th of Mar, 2009
    0 Votes

    I am in full aggreement with you. This problem from what I have been reading is nationwide. I think the schools should be exposed for their fruadulent and misleading contracts. I myself am in the same situation with my son. The unbelievable aspect is that the schools want absolutely nothing do with you once the contract is signed. All of your further dealings are with EFC which has nothing to do with the Karate school except collect your monthly fee. I have tried with the BBB and apparently the schools and EFC give them a bunch of bogus info. All of these contracts need to be taken a step further. I do feel that there should be some resolution and all of these schools should be exposed and these contractual agreements with EFC should be terminated. Before anyone signs up for Karate school check the contract. If the school had your child's interest in mind they would actually hire someone to collect the monthly tuition and not strap you with a contract. If the school was good you wouldn't want to leave in the first place.

  • Fe
      15th of May, 2009
    0 Votes

    I had the same experience with this fraudulent and deceptive company. They have charged my credit card twice after my contract is supposed to be up. They hang up on me, transfer me, tell me to call back, etc, etc.

    I notified the better business bureau and the federal trade commission on their websites which you can find by googling the respective agencies. Everyone here should do the same!

    I agree that we should begin a class action law suit. I think the volume of complaints is such that our case would be overwhelming.

  • Fe
      15th of May, 2009
    +2 Votes

    I am willing to begin the class action if enough people respond with interest. We should also notify our congressmen.

  • Fe
      15th of May, 2009
    0 Votes

    After my horrible dealings with them I would be interested in helping start a class action suit.

  • Bm
      11th of Jun, 2009
    0 Votes

    i am looking to cancel my contract with EFC. i just found out that the karate school my son goes to will have a two months summer break, which i was never made aware of when i signed him up. why in the hell should i pay for two months when i am getting nothing out of it. my son has to have ear surgery so i am going to go this route for the cancellation. i will also close my account and just open a new one to make sure they dont get any more of my money!

  • Ef
      16th of Jun, 2009
    -2 Votes

    Educational Funding Company complies by the letter of the Student Enrollment Agreement. There are provisions for cancellation in the enrollment agreement that can be exercised. EFC services quality martial arts schools from around the world. Please provide us with your account information and we will look again at your circumstances and respond promptly.

    Educational Funding Company

  • Ra
      2nd of Aug, 2009
    0 Votes

    I signed a year contract with Kick Connection in Pasadena, MD. After a few months, I fell on hard times due to the economy. My hours were cut at work, and any extra activities that I had, I was cancelling. When I called EFC, "Mini" said they would look into it. I then got a letter saying that I was not allowed to quit and they are still charging me. I have called repeatedly to find out when my contract ends, and have not gotten an answer yet. I will never, ever recommend anyone to use this company. Their customer service is awful!

  • Ri
      5th of Oct, 2009
    0 Votes

    I am in the same shoe. We moved fifty miles away from Houston, sent a cancellation notice because it's part of the small print and they denied to received it. I have a complete charge list from the AT&T and there is a proof I sent to faxes- one of them to the karate place one of them (same fax) to EFC. However a called my credit crad company to cancel the payment and also you can file a claim to your State Secretary. However I will do (Texas Secretary of Staes, Austin PO.BOX )12877) that and I will attached this page and all the proofs.

  • Ri
      5th of Oct, 2009
    0 Votes

    I also have a strong clue the EFC is an outsourced company to India, because everybody who I talked to has a strong or mild Indian accent. Of courset, they never ever will solve the costumer problems, because they are not here in the United States. And if you file a claim, they also don't care because if they go out of business they will hire a hundred of other Indians from Mumbay or Banghalor, start the new and same fraud under different name. Every Indian company I worked with before in the IT business had the phone and fax number and of course office in the US with American zip code and area number, but it doesn't mean anything. They worked physically in India.
    We have to investigate who are behind the company, because I am afraid the Educational Funding Company is not even American and we give them our credit card number and all of our information.

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