Tag Archives: refund

LA Weight Loss to Refund Members $200,000


The Oregon Attorney General has issued the following press release:

The Defunct Diet Center Chain and Oregon Franchise Agree to Pay $200,000.

Attorney General John Kroger announced a settlement that will provide up to $200,000 for Oregon consumers who bought services and products from a now-defunct diet center chain.

“Misleading Oregon consumers is not acceptable,” said Attorney General Kroger.

Consumers who believe they are due refunds from LA Weight Loss should contact the Attorney General’s hot line: 877-877-9392 or fill out a refund form on the Oregon Department of Justice’s website: http://www.doj.state.or.us/releases/pdf/lawl.pdf

A 2007 lawsuit by The Oregon Department of Justice alleged that LA Weight Loss and its Oregon franchise owner made false and misleading claims about the program’s costs and fees. The state received 295 complaints about LA Weight Loss centers in Oregon.

The lawsuit named LA Weight Loss Franchise Company, a Pennsylvania-based company, and NWM, Inc., a Lake Oswego-based company.

NWM went out of business two months after DOJ filed suit.

By December 2008, all LA Weight Loss centers in Oregon had closed.

Today, DOJ filed in Marion County Circuit Court a $200,000 settlement with LA Weight Loss Franchise Company and LATO, LLC, a wholly owned subsidiary of LA Weight Loss Franchise Company. Under the settlement, the companies will also pay additional refunds directly to approximately 100 Oregonians for pre-paid amounts that were unused at the time their center closed in Oregon.

Earlier this year, DOJ reached a settlement with NWM.

Assistant Attorney General Eva H. Novick handled the case with assistance from Senior Assistant Attorneys General Greg Smith and Tim Nord.

Attorney General John Kroger leads the Oregon Department of Justice. The Department’s mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.

Documents:

Stipulated Partial General Judgement

LA Weight Loss Assurance of Voluntary Compliance

LA Weight Loss to Pay Refunds to New York Members

Here’s the story posted on Fitness Business Pro:

ALBANY, NY — New York Attorney General Andrew Cuomo announced last week that LA Weight Loss Centers Inc. reached a settlement to pay $275,000 in refunds to thousands of New York state customers who paid for but never received services after LA Weight Loss closed its doors in January 2008.

Cuomo’s office has identified more than 100 customers so far who were affected by the closures.

“As more companies fall victim to the harsh economy, they still have an obligation to abide by the law and be forthright with their patrons,” Cuomo said in a statement. “Many New Yorkers who paid for and never received services from LA Weight Loss now have some vindication.”

In January 2008, LA Weight Loss Centers closed all of its 45 centers in New York state, then filed for Chapter 7 bankruptcy in Philadelphia. Cuomo’s office had received several complaints from customers who did not receive a refund from the company or did not have the charges removed from their credit cards for advanced payments.

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LA Weight Loss Took Our Money, Then Closed

Comments and complaints are pouring in from LA Weight Loss customers who are finding themselves without their weight loss program, without the products they paid for, and without a way to get a refund. Vicki Carter wrote: “Hi i know how you all feel as well, i joined LAWL the beginning of oct 08 and then brought a friend with the bring a friend promotion, we were never told that the business was having problems, they took our money talked me into getting a visa card to pay for my bulk bars, and then announced they were closing the office in our area down and that we’d have to go to an office an hour away. then the next week we hear they’ve gone bankrupt, we filled out our refund papers as to date have not heard a damn thing from them… i too am tryoig to understand how a company that charges so much money and had so many offices could have gone bankrupt. i’m wondering if i’ll ever see my $300 odd again, i was lucky enough to have only had like 10 box’s of bulk left and went and got them very quickly…” Have you been burned by LA Weight Loss?  Share your story below.

Pure Weight Loss to Pay $700,000 to Former Members

Here is the press release issued by the office of PA Attorney General Tom Corbett December 12, 2008:

Attorney General Corbett announces $700,000 consumer protection agreement with Pure Weight Loss Inc.
HARRISBURG – Attorney General Tom Corbett today announced a more than $700,000 consumer protection agreement with Pennsylvania-based Pure Weight Loss Inc. addressing more than 3,500 complaints involving non-delivery of weight loss products or services to consumers from Pennsylvania and several other states.

Corbett said a consent decree has been reached with Pure Weight Loss, Inc., of Horsham, PA (formerly known as L.A. Weight Loss Centers, Inc.), along with the company’s owner and president, Vahan Karian.

Corbett said the agreement requires the payment of $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered and who filed valid complaints with the Attorney General’s Health Care Section.

Additionally, the agreement sets aside $200,000 in a secure fund, which will be used to provide restitution to consumers who filed claims in the U.S. Bankruptcy Court case involving Pure Weight Loss. Corbett said this money will be turned over to the Bankruptcy Trustee for distribution to consumers who have filed proofs of claim with the bankruptcy court.

Corbett explained that the Attorney General’s Health Care Section began receiving complaints about Pure Weight Loss in December 2007, shortly after the company announced plans to close more than 400 weight loss centers across the country. The company halted operations on January 4th, 2008, and filed for bankruptcy shortly after that, leaving thousands of consumers without access to weight loss products and services that they had pre-purchased.

Corbett said that the majority of the consumers who contacted the Attorney General’s Office had purchased contracts lasting a year or more, paying as much as $2,000 for “lite bars” and other food items that were never delivered. Following the closure announcement in December 2007, consumers were instructed by Pure Weight Loss to pick up products from their stores prior to January 4, 2008, or file a claim for refunds – but many consumers failed to receive either refunds or the products and services they had purchased.

Corbett said that in addition to the $700,000 payment from Karian and Pure Weight Loss to fund consumer restitution, the Pennsylvania Office of Attorney General is also working with authorities from the states of New York and Maryland to recover additional funds for consumers from those states.

Both New York and Maryland require weight loss centers to post security bonds intended to protect consumers against losses, and all complaints involving consumers from those states will be turned over to authorities in New York and Maryland as claims against those security bonds – allowing the remaining funds to be distributed to consumers from Pennsylvania and other states.

Corbett said that efforts are underway to verify all the consumer claims that have been filed with the Attorney General’s Health Care Section. Bank and credit card records are also being obtained to determine the exact amount of credit card charge-backs, stop-payment orders or partial refunds that may already have been paid to some consumers. Corbett said the final distribution amount for each consumer will be calculated when the review of that financial information is complete.

It is anticipated that partial refund distribution will begin in early 2009 for eligible consumers who have already filed complaints with the Attorney General’s Health Care Section.

Refund distribution for consumers who filed proofs of claim with the U.S. Bankruptcy Court will take place at the conclusion of the bankruptcy case involving Pure Weight Loss.

The consent agreement was filed in Commonwealth Court, in Harrisburg, Pennsylvania, by Deputy Attorney General Timothy E. Gates of the Attorney General’s Health Care Section.

LA WEIGHT LOSS: Centers Closed or Closing (Updated List)

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This unofficial list is compiled and updated through comments, tips and rumors supplied to us by anonymous LA Weight Loss employees, LA Weight Loss members and ex-members, and news reports. Please post any corrections, additions or insights in the comments section below. Thanks!

LA Weight Loss Centers Reported Closed or Closing Soon

Updated 8/22/08

CA San Diego
CA Escondido
CA Encinitas
CA Bakersfield – East (Mount Vernon Ave.)
CA Bakersfield – SW (Ming Ave.)
CA Poway (San Diego)
CA Chula Vista
CA El Cajon

CO Colorado Springs (Closed 7/08)
CO Denver (Blvd Ctr – Sept. 08)
CO Aurora
CO Boulder
CO Lakewood
CO Centennial

GA Conyers
GA Alpharetta
GA Camps Creek
GA Lawrenceville
GA Stone Mountain

ID Boise,
ID Nampa

IN Evansville
IN Vincennes
IN Terre Haute
IN Bloomington

KY Elizabethtown,
KY Louisville/Hurstbourne
KY Springhurst
KY Frankfort (Closed 08/08)
KY Lexington Hamburg Pavilion (Closed 08/08)
KY Lexington Beaumont Centre (Closed 08/08)
KY Owensboro

MT Bozeman

NE Butte
NE Lincoln

NV Reno
NV Sparks

NC Jacksonville
NC Wilmington (Closed 7/08)

SC Asheville
OK Oklahoma City – North (10/08)
OK Oklahoma City – South (10/08)
OK Mid West City (10/08)
OK Edmond (10/08)
OR McMinnville (09/08)
OR Sherwood (09/08)
SC Spartanburg

TN Chattanooga
TN Bartlett (8/29/08)
TN Columbia
TN Kingsport
TN Jackson
TN Bristol
TN Johnson City
TN Greenville

TX Temple
TX Waco (September 26th)
TX Killeen (September 26th)
TX College Station (September 26th)

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LA WEIGHT LOSS: 4 Weight Loss Centers Closing in CO


Source: 9 News

In a statement issued Friday, L A Weight Loss stated, “Due to adverse market conditions, we have merged four of our centers into the remaining six this year. L A Weight Loss will continue to service clients at their current Colorado locations. It is our hope that economic conditions allow us to remain open.”

L A Weight Loss has operated in Colorado for five years.

Programs at the affected centers will be merged into the six centers that will remain open.

Clients of the affected centers have been notified by mail and in person by representatives at the centers, according to L A Weight Loss.

While a spokesperson would not comment on which centers will be closing, a manager at the Colorado Boulevard center told 9NEWS that her location will be closing in September.



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LA WEIGHT LOSS: Terre Haute, IN Center Closed


Source: WTHI TV

“…Since the beginning of the year across the nation LA Weight Loss Centers have dropped a ton of weight by shedding their customers.

Including right here in Terre Haute.

“When channel 10 broadcasted over their news yesterday and the day before is when we became aware that they were closing,” Caroline Came said.

A few months ago, Caroline paid her daughter’s membership in full.

“I am just very frustrated because we have saved put money for this for her,” Came said.

So News 10 went into the L-A Weight Loss Center looking for answers.

When called, the worker said she could not comment on the closing.”

News 10 called again.

“If you have a concern and would like to speak to a customer service representative please press three,” the operator said. “Thank you for calling us today your call will be returned within “48 hours.”

It’s been 24 hours and they have not called back.
* * * * *

LA WEIGHT LOSS: Evansville, IN Center Closes

LA WEIGHT LOSS: Evansville, IN Center Closes

Source: 14 WFIE

Customers of LA Weight Loss in Evansville are coming forward claiming the store kept their money after closing. Some customers claim there were no warnings.

* * * * * * *

Baldwin says she charged more than $700 to her credit card for payments to LA Weight Loss. So finding out the store was closed on Thursday came as quite a shock.

“I was pretty upset I was never notified that they just closed,” said Baldwin.

Baldwin says she is only about halfway through her contract and she the owner still has her money.

“I’m still just left holding an empty bag. I’m in debt now hopefully I can work something out with my credit card,” said Baldwin.

Baldwin says she paid $400 for a year-long membership with the company.

She also claims she bought 20 boxes of dietary bars for $300 and so far has only received four boxes.

* * * * * * *

Other customers of the weight loss program tell 14 News the store was signing people up and taking their money just a week before closing.

LA Weight Loss released the following statement: “LA Weight Loss franchise company was just notified by the local franchise owner that due to economic conditions he can no longer continue operating the local Evansville, Indiana center.”

The statement went on to leave two contact numbers to reach the owner.

Baldwin called the numbers and says she’s gotten no response.

“I understand times are hard but now i don’t have $708. So I’m hurt just as much as he is. I signed a contract but it needs to be honored one way or another.” said Baldwin.

Now Baldwin tells us she’s working with the Better Business Bureau to solve this problem.

14 News also tried to call the owner and weren’t able to reach him.