Angela Benardini
June 13, 2018 16:53
Anyone considering enrollment in a Karate America school should very carefully contemplate the decision.
As a note: This review is very lengthy, but really must be to capture all misdeeds we have experienced as of late with the school.
Background: We enrolled our child at the Karate America Orange Park, Florida location December 2017 as a Christmas/birthday gift combination for our child. After verifying with multiple employees at the school and headquarters regarding cancellation questions (i.e. is it possible to cancel even though there is a "contract" in place while the child attends martial arts,) we proceeded with the three-year commitment because we were advised a one-time fee of $150.00 would be charged should the need arise (for any reason).
The ONLY reason we enrolled our daughter at this school (after reviewing > 8 in our area) related to the choice of instructor. Unfortunately, KA made an announcement during the 2018 June black-belt testing that this instructor would be leaving, by the instructor's choice. We were naturally very disappointed, but we decided to give the replacement instructor a chance as outlined below (and we had also already paid for three weeks of summer camp plus graduation fees. We accepted the $500.00 loss for the camps, along with the special ATA gear we purchased costing us in excess of $500.00. We are not asking for a refund or complaining about these costs. All-in-all, an expensive loss - but we do understand this aspect of the martial arts programs).
We dug into the past of the new instructor (given his tactics in class) and found alleged criminality. Even after conveying these details to headquarters, our request for cancellation is still not permitted. I do not trust the background check process at this point for KA.
Legality observations
1) Karate America does not appear to have a retail installment seller license (as required under Fl. Stat. 520.32)
Note: Though the school does not specifically charge for financing, it is still a requirement for a seller engaging in retail monthly payments to obtain such licensing prior to engaging in financially obligated monthly installment programs. Furthermore, the company will and does report the consumer to the credit bureaus should the "borrower" fail to make payments (thus covered under consumer protection, FCRA and governed by the FTC)
2) The Company appears to engage in an unfair and deceptive trade practice under 16 CFR 433.2 by failing to have the required Holder in Due Course disclosure in their contract
3) Karate America appears to violate the Retail Installment Sales Act (Fl. Stat. 520.34) by failing to have the name of the seller on the contract
We are only requesting that Karate America allow us to cancel the monthly membership for our child, given the outlined, aforementioned information. Additionally, I am NOT the only parent advised of the $150.00 cancellation option (not just those reasons outlined in the written contract). I verbally agreed to this aspect of the contract with the salesperson and shook hands, so this aspect of the contract should be considered.
A small sample of other parents experiencing the backward motion for adhering to the $150.00 cancellation fee. You will need to google this information as I cannot paste a link directly into the review.
ripoffreportcom/reports/karate-america/jacksonville-florida-32225/karate-america-will-rip-you-off-please-do-not-be-misled-they-charged-me-6650-for-serv-323077
yellowpagescom/jacksonville-fl/mip/karate-america-world-headquarters-9404859
Select customers are actually allowed to pay the $150.00 cancellation fee, even if the "reasons" are not aligned with the written contract - see a response from a KA employee:
complaintboard/karate-america-l2651
Should Karate America decide to assist us with this legitimate request, we will update this review accordingly.