LA Weight Loss Australia Goes Bust

True they've gone bust in Queensland Australia, I feel sorry for the people who have just joined up this week - they won't get anything. Personally I'm out of pocket for my 6 weeks stability and 52 weeks maintenance ($580 Aus) and also for the LA Lites - 22 boxes of them. Apparently the staff didn't know until yesterday 25 May but an indication may be that the Lites have been hard to get here for some time. My local LA is chained shut with the sign on the door as are the other branches in Qld. Be careful!

WOW. I just finally got my money back from this company. It took a lot of battling to accomplish that. It isn't a good diet for many people. Those bars take up 400 calories a day. A person could eat a lot of good vegetables for that and not feel so deprived. It's good for Australia if this group isn't allowed to do business there.

Rosann, how did you get your money back - I guess you're not in Australia? I heard in our local media that the parent company of the LA franchise in Australia, based in Sydney has gone into liquidation so I doubt any Aussies will get their money back. One guy only signed up a week ago and forked out $3,000 AUD for his program.

It Sux! I joined the Canberra Centre 4 weeks ago, fortunately I chose to do direct debit and my first payment is due tomorrow! Have quickly seen to it that there is no money in that account in case they try and take it anyway!

Turned up for weigh in on friday and the place was closed, no note on the door nothing!! Should have listened to my intuition about this company. The bars were outragiously expensive. Im happy to save my $130 a fortnight! I still have the diet, and for $3.50 I just went down and bought a packet of biscuits from the woolies health section that had less calories, less sugar and less fat! I feel sorry for the people who paid upfront and Im sorry they shut because it was working for me! 5kg in 3 weeks! But I still know the program and still have the enthusiasm, will now have some money in my pocket to pay for the new wardrobe in a few months!

Penny be careful re your payments. If you took the option of direct debit it is with Certigy who are a third party who do the finance, they pay LA direct so you are obligated to pay Certigy and if you read the fine print you will be penalised if you don't make the payments, please call them in Adelaide tomorrow to discuss and post the outcome on this site as I still have payments coming out for the bars until November so I'd like to know how to get out of it if I can. Good luck.

Well I worked for LA weightloss in Australia, and I am so very very sorry to all of our clients who have been left out of pocket. Us staff were only given 10 minutes notice to get out the door. Please call certigy and get your contracts cancelled. And please please please keep going with your weight loss, this is so unfair.

Thank you to the Aussie LA worker, I feel sorry for you as well as the clients as now you are out of a job, thanks for your advice with regard to Certegy and good luck for the future!

No Worries Nicky

I feel sorry for all of us involved. I know one of you personally and it breaks my heart seeing her name up here. She hasn't been on the program long but she has been doing an outstanding job so keep up the good work. So many people have gone so far on this program, I had a few of my clients that are on stabilization. So well done to them too. It was just so sudden, we were not allowed to put a note on the door. I have seen so many of my clients out and about over the last few days and as upset as they are, they have been so kind to me, as they do understand it isn't my fault, although I have copped a fair bit of abuse as well. I personally did not see this coming at all. I am so sad to have left this job as I really enjoyed helping people get to their weightloss goal as well as seeing the difference it made on their lives.

Good luck to you all

I found out yesterday about LA going bust and I was absolutely devastated. Disappointed about the money I have lost of course, but more upset about losing access to the program and the bars which have helped me to lose 15kg (I still have about 20kg to go). I'm going to keep trying to lose the weight but I haven't been able to do it solo before ... hoping that this time I will.

LA Weightloss Australia worker... are you sure that we can cancel our contracts with Certegy without getting a bad credit rating or something like that? If I could cancel my contract it would certainly mean I am less out of pocket.

Good luck to all the other people who were with LA and I hope everyone can keep going with their weight loss. Just remember why you started in the first place.

Please understand that this is just as up setting for you as the client as it is for me a former worker and for all the management team which who had put there blood sweat and tears into the business. We have lost not only our income but in all the girls at my center our words 'The best job we have ever had' This was a shock to us as we had 5 min's to get our stufff and leave and could not leave a note on the door. We a truely sorry. You all can still stay on the program it works with out the lites. You all have it in you to lose the weight you wish to lose. We do miss all our clients and wish them all the best. You were more then clients you were family to me and the girls and to see you leave with that smile would make our day.

Hi All,

I am out of pocket $1000, and my Mum anbout $1500...what do we do now? How do we get our money back?

We cannot let this corporate giant walk all over us...that is just not what us Aussie put up with!!!

CTP

Hi Starworker, yes I was a manager of one of the centres in Australia and to me and my girls it was simply the best job we ever had too. Our clients were family to us too.

And Shannon, I would be giving Certegy a call because I spoke to a client today and they called yesterday and canceled their contract immediately. Good luck with that.

I am lead to believe that they reason behind the close of LA weight loss in OZ is because of the way it is running in USA on from media reports in brissy. Please just give it time before you start calling and demanding your money back. The management team are the most down to earth people you will ever meet. I know they will do everything in the power to correct this asap. Please just think they had lost everything as well this is a family run business and they put everything on the line and believe in the program just as much as we did. Just give it time i know your all angry as i am i have lost my job but you have the power within yourself to do this.

I just also want to add, that it wont affect your credit rating whatsoever, Certegy is simply a direct debit company only. Please give them a call and see what they can do.

Starworker said:
I am lead to believe that they reason behind the close of LA weight loss in OZ is because of the way it is running in USA on from media reports in brissy. Please just give it time before you start calling and demanding your money back. The management team are the most down to earth people you will ever meet. I know they will do everything in the po[...]

I completely agree with you, the management team are absolutely fabulous and they will do the best they possible can to help everybody. My heart hurts the most for the family...

Reading the notes above gives me heart, I believe LA Aust worker is, I just have a feeling, the manager of where I went, if this is you "S", you will always have my thanks and faith for your help and support, for the 7.5kg I've lost and the rest that is going to go. I feel a bit sad you've been abused. If I saw you I'd simply give you and any of the other girls a big hug. Don't give up on the industry you are all in, you have given so much and have done so much - it's not your fault this has failed. xx

Hey Aussie worker,
Im glad to see we are are not the only ones who felt that way, as i am sure we all did.I wish there was some way we could help the clients still. Becasue thats what it come down to. It had nothing to do with the money it was making peopel happy and seeing them reach towards there goal and really change there life. I looked up to my Manager as a mother figure and to the other girls as my sisters. it breaks my heart to know i just had to leave nothing to say to no one. I really do miss the clients and the chat we always had. Hope you have found another job and are really happy.

If LA worker is one of the Canberra team, I do not blame you guys or feel angry towards you at all! You guys are probably worse of than the rest of us, losing your income without any warning. If its "M" I think you were great, and so were the other girls, they always so god damn happy! I'll still be continuing, I will be calling Certyg, not giving the company anymore money for nothing. Will miss the bars, my bank account wont, but have found some tasty substitutes and will be checking out the health food stores tomorrow for something like the LA lites.

Its bad news for everyone involved. Im lucky Im only out of pocket $300 but its $300 I would pay again as it got me back on the diet wagon and my head is where it should be and I will be walking down the aisle in a size 12 dress!

Funnily enough, I have to laugh a bit, I got accepted to participate in an eating disorder clinic, but they wouldnt take me while I was on LA. After the phone call I said to the powers that be, what should I do, give me a sign! Two days later LA closed down, so if its my fault, I really apologise, please dont sue! lol!

All the best to the girls at canberra LA both clients and staff, chin up, bad things happen for very good reasons! One door shuts another one opens.

I attended the Springwood LA Centre and found the staff to be fabulous, especially Krissy, Karen and Cath. I suspected something wasn't right when the staff weren't paid for a few days over the Easter break, but you don't think anything more of it, until now. I am grateful for the 12kg's I have lost so far, but am concerned now that we don't have the emotional support we used to. Shame we all can't pull together to keep on losing. Thanks to all the wonderful staff and good luck to you all for the future.

I was at the football Saturday night and hadn't heard a word of any of this. Friends mentioned it to me knowing that I was doing a weightloss program. I came home and tried finding information on the net and after several searches finally found a reference to the Gold Coast Bulletin article. I'm appalled to think how many others doing the program don't know this has happened.

Yes I will be out of pocket and will take steps immediately to rectify stopping the direct debits for the bars. However, I am more upset that the support and guidance from the girls at the office I go to will no longer be there. I had finally found a program where I was losing weight and actually enjoying the way it was being done ie finding the fun in eating healthy food again and not having to count points or have everybody watch me step on the scales each week.

Good luck to the LA Workers as I feel extremely sorry for you all. We may have lost money on this venture but at least we are still off to work on Monday. For the rest of us who were doing the program, keep up the good work people! We just have to remember what was working for us and sticking to it. Keep an eye out for those you do know who were doing the program and continue to support each other. I know I will.

I have called certigy and they have told me I cannot get out of their contract, I have paid $600.00+ for the program and $1000.00 for bars, only 4 weeks ago. I don't feel sorry for the owners, I am sure thry knew this was coming for some time, no excuses for 10mins notice to staff and no notice for clients. I would have been happy if I could have just got the remainder of the bars I had paid for.
Up yours LA!

I have just checked the contract for certegy. If you have chosen to pay the program off by direct debit and are also paying the LA Lites by direct debit then that is in breach of their aggreement. It says that you are not allowed to apply for another Certergy Ezi-pay agreement or Self Branded agreement using any account in your name until this one has been paid in full.
I was offered to pay the program though direct debit every fornight (and did) and was then offered to pay for the LA Lites by the same method (which I declined). Anyone who has 2 agreements with certegy may want to check that it is legally allowed as they state it is not. So perhaps that might help some people get out of one of their contracts if Certergy wont let you cancel the agreements.
I to am is the same boat as all of you. I am devastated as this program worked for me. I however am still going to continue. Why not! It will now not cost us anything more and we will be the ones benefitting at the end when we lose the wieght.
Hope this information might help some people and guys continue with it. It was working and still will.

Thanks Fluer I am waiting to call them in the next ten minutes, if they protest I will use that one!! It is just so wrong. It is LA that broke the contract NOT US!

Hi Penny.

I am waiting to call them also. It is unfair. I just hope they will cancel the agreements as they have done with another lady who wrote in. If they do it for one then they have to for all you would think. Can you please let us know how you go when you call and I will also.

Ive submitted the story into Today Tonight as well. I wont be taking this lying down at all!

Have just been told that I am not able to cancel my contract. Will be contacting a lawyer to find out what we can do. I am really ticked off now. Will let you know what they say.

I stopped my direct debit payments through my bank on Friday after hearing the news. I then called Certgy and they said that i actually had the contract with them. I have seeked some legal advice and have been told that if LA can not provide a service then i am within my rights to stop paying them. LA is the merchant and the merchant has gone bust! I went to coorparoo and i would like to thank the staff that supported me. Hope that i don't get into trouble for stopping my direct debit.

Hi Fleur,
can you let us know what the lawer says, I have also noticed that on the top of the contract there is a box that states goods taken, which is not the case with LA, I wonder how legal these contract are.

LA weightloss australia worker said:
Hi Starworker, yes I was a manager of one of the centres in Australia and to me and my girls it was simply the best job we ever had too. Our clients were family to us too. [...]

Have just contacted Certigy and they have said that I am liable to pay them as they have already paid LA (financed them) the money that I owe and that I need to get in contact with LA Head Office Sydney on 02 8892 0900 to get bars as some outlets are still open. I have tried to contact them on this number are they are engaged (gee I wonder why lol!!!) will keep trying though - at least I have only one payment to go!!!

Excuse my language but what a bunch of c - - -ts!

Got the same message and told to fax in my request but contract is with them not LA.

Im really pissed off now! I am writing to the Department of Fair Trade and the media!

I had two direct debits to my credit card, one for the program and one for the LA Lites. I have just had the credit card cancelled on the advice of my bank. They said they would put in a dispute if Certegy tried to debit the account. It means I have to change any other direct debits I have but that seems a small price to pay. Maybe this is an option for some of you. I'm also getting married in 4 weeks so not the stress I needed.

I agree 100% Penny. I am trying to get some legal advie but nothing open until 9am. Will let you know how I go. I think Today Tonight would love this story. Good on you. Would be happy to join in.

Im getting married at the end of the year too. I felt sick in the first place signing this deal when saving for a wedding, damned if Im going to pay it now!

I am so sorry Ladies, I thought you would have been able to do something, I know the last lot of clients i signed up will be ok, because I hadn't submitted their certegy contracts.

You go Penny. Go hard I say. this is so unfair. And yes I am who you think I am

Did anyone get the fax number for Certegy, since they are too gutless to talk to us over the phone and their number is now engaged? I was too peed off and hung up before I got the number to send my request.

I have just spoken to Legal Aid. They have advised me that the new Code of Banking Practices (clause 19)states that you are able to cancel direct debits with third party or banking. The web site is www.bfso.org.au and contact number is 1300780808. I am going back to certegy to advise them that I am allowed and will be cancelling my contact

Hi Penny

Fax number for Certergy (Melanie) 0881002680

Excellen Fleur

I have just spoken to my bank and they said the same thing. It can definately be cancelled, Certegy will just advise you different because they are the ones that are going to be out of pocket. Because they have already paid LA. they pay LA as soon as you have successfully made 2 payments.