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LA Weight Loss Australia Goes Bust

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Australian dieters have been left out of pocket after LA Weight Loss clinics closed their doors.

The LA Weight Loss franchise has been operating in Australia for about a year - with at least 12 clinics.

Yesterday, the doors were chained and there was a sign posted, apologising for the closure of the business.

"It is very disappointing. I feel for all those people who had only recently signed up," said Ms Deery. "There were many customers at the shop (yesterday), shaking their heads in shock."

Many customers have paid the 52 week maintenance fee (AUD$ 10 per week) in advance - as well as paying up front for a large supply of the protein bars.

There is no evidence that this has any affect on LA Weight Loss operations in the US.

NOTE: An on-line support group has been set-up here.

UPDATE: Apparently all Australian clients of LAWL will be receiving letters
canceling their contract for any further payments to LAWL.

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185 Comments(Now closed for this article)

Karen

I have a direct debit to my credit card for payments for this program and my bank Westpac have advised that I cannot stop payment as a credit card works differently than a savings or debit account. They can only dispute the payments on my behalf, therefore Certegy can keep debiting my credit card. Even if I cancel my existing card and open up a new one the payments will be taken directly from my new credit card. I will also need a copy of something in writing from either LA Weight Loss (or someone else!!)to advise that they are into liquidation or have closed their doors. Does anyone know who I can contact in Brisbane for legal advice?

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Nikko

Hi all, please phone Certegy back and get your payments moved 2 weeks ahead which I have just done, they have an updated statement which reads "LA have 14 days to advise if this is a temporary closure or a permanent shutdown". Certegy are happy to suspend your direct debits for 14 days until they get word. If it is a temp closure then direct debits will recommence in 14 days (you have to phone and get them moved), if LA is shut down then all direct debits will be cancelled. I just spoke to a lady called Sharon, they are very stressed as they are taking the brunt of what has happened and don't have all the details from LA - good luck to you all.

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kaz

EX employee
I just want to add to this site as someone who felt physically sick when i got the phone call to not bother turning up for work on friday, us girls do not feel the least bit sorry for the owners, they must have known that this was going to happen they may have been il advised by a certain american lady and all the other blond jack russels that were at the top of this but the buck stops with them.I feel sick to think that i wasnt told to stop signing people up, i signed 2 girls at 6pm wed night and i feel so bad,that alone has to be breaking the law,yes i am now out of a job but i feel even worse for all the clients that i got to know personaly, the other sad part to all this is the program did work, as for the gutless way they chained up the doors and took all the computers late on thursday night so they wouldnt have to see any clients was disgusting,but what a shame the landlord of my centre got in first and changed the locks lol, To all my lovely clients i am so sorry but i will be doing everything i can to help......Springwood

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D

Heidi! thankyou!!!

I just phone certigy again (spoke to Lauren), and they have put my direct debit on hold until 14 June 2007. Lauren also said that IF LA Weightloss publicly announce that they are in liquidated, then the contracts will be cancelled. Otherwise, if they don't publicly announce they are ceasing business the contracts remain valid and they should reopen (not holding my breath though!!)

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Penny

Got my payments deferred, thanks for the advice Heidi. Im still following this up with legal aid and the rest. This really is unfair trading. LA was very disceptive and I will certainly be very careful next time I sign anything like this!

Thanks everyone for writing to Today tonight. Lets be heard! Thanks Canberra D for the support as well!

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Penny

Well at least we have put the pressure on Certegy enough to rethink their position!! Fingers crossed they will cancel these contracts.

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Shannon

Thanks for the advice ladies, got my payments deferred also, and the girl I spoke to (Melissa) was very helpful. Apparantly Certegy will automatically cancel all contracts done through LA Weight Loss if they have, in fact, closed their doors permanently.

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D

Spoke to fair trading again (for Canberra) - they still recommend that people fax them a letter explaining the circumstances (including that certigy have put holds on dd's and advised they will cancel contracts if LA don't reopen), as if two weeks down the track things don't go to plan, then your complaint is already registered with them and being investigated.

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Fleur

I have jut spoke to Certegy to get payment deffered. I requested again that wanted contract cancelled regardless of LA opening again or not. They advised me that I could not cancel contract if LA opens again. I advied them that I would be. The lady advised me that the reason they closed down was due to the fact that they were unable to get the LA Lites shipment. What a crock of S***T. They dont chain doors and take computers, and sack workers for lack of shipment. Cant wait to speak with lawyer tomorrow. Would love to be able to rip the bloody contract up in their faces.

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Lucky me

Lucky me

Finally I feel committed to loose weight - I just joined and did not even get to see my first week out and then bang! closed! just like that... not even a message on the answering machine to apologise and say what happened.

I had my first personal training session and was excited about the programme, I was telling my trainer that I had just joined - she said she heard about a weightloss programme going bust but did not know who it was. After my trainng session, I drove to the centre for my second appiontment (still in the first week) and no-one was there. It just so happened that a guy from another store told me what had happened. If it was not for him, I would have no idea. THANKS LA FOR NOTHING - lucky for me though - I had not purchased your bars at this stage - I was about to that day and also pay the balance of what I was supposed to have paid the night I joined. I am only out of pocked $150 - LUCKY ME!

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Michelle

Thanks for all of the updates, hopefully we will hear that they have shut their doors permanently and our payments will cease and we won't have to worry about LA Weightloss ever again and continue what they have taught us and prove that we can lose weight.

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cellebear

great work Tracy and Heidi. I was holding off sending my fax until I had spoken to someone for legal advice. Now I'll just send a fax (perhaps a little more kindly worded than what I have saved in draft) asking them to hold my payments until the la weightloss dispute has been resolved. Although I must say I'm not that keen to put my trust in them again if they do re-open the doors. Pity I was enjoying the program.

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Penny

Just ate my last choc crunch :o( One shake left :o(

Hate them hate them hate them!

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cellebear

plenty being sold on e-bay! all from the US. maybe we can get Certegy to pass on our payments to those selling them on e-bay. hehehehehe

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Penny

L A Weight Loss Pty Ltd
U 603/ 12 Century Cct
Baulkham Hills 2153
(02) 9899 9635OR...(02) 9899 8438

Rang these numbers as well but surprise surprise no answer

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cellebear

Hi Karen - the number for Qld Law Society is 38425888. They gave me a couple of names I could try for civil litigation which is what they said would be required. I did ask about legal aid but wasn't given a number so if you get one, I'd appreciate it if you could post on here for me. I've rung one of the numbers they suggested and am waiting for them to get back to me.

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Fleur

If anyone has all the nutritional info on the chocoalte crunch bars could you please let me know. I threw the box out before all this crap started. I just want to know what I could replace them with or if I need to even replace them.

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Shannon

Hey Fleur,

My mum and I are doing the same thing - substituting the bars with something else. So far we've found that the Cadbury Brunch Bars are fairly similar in all the nutrional info and they're quite nice.

Choc Crunch nutrional info is:
Energy: 794kj
Protein: 8g
Total Fat: 5g
Saturated Fat: 3g
Trans Fat: 0g
Carb: 28g
Sugars: 18g
Sodium: 110mg

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Client Brisbane

I have rung Certegy today and they have advised that the centres were closed due to the lack of LA Bars etc. and have advised they will only be closed for 14 days.

Certegy is awaiting the formal announcement from the company on whether they are closing for good or reopening within 14 days.

If the company will be closing the doors permanently all contracts with Certegy will be cancelled.

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Fleur

Thanks heaps Shannon. I think the bars were just a money making thing now that I see what the nutritional info is. However they did taste good and must admitt I looked forward to having them. I am getting more positive about doing this on my own. I havent stopped the plan since all this started and am still losing weight. I think maybe we should all write to each other and have our own support group. We can do it!

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Penny

In regards to bars. In woolworths Natural section I found some choc biscuits which are quite yummy. Two choc coated biscuits are the same kilijoules as one bar with only 5g sugar per bisuit compared to 18g in a LA Lite bar, so I guess you double that for two biscuits and it still comes well under the sugar content of one bar. I think they were a woolworths brand. They have soy and all that other stuff in them and gluten free. Very very nice. Too nice they have to be naughty!

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Penny

Please let us know what the lawyer says about it tomorrow Fluer! My appointment is Thursday and that feels like ages away!

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Fleur

I will do. Mine is in the afternoon tomorrow so as soon as I hear will let you all know.

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Penny

The reporter just rang me up again, he is still on the chase and has spoken to Certegy who state what someone earlier said that the owner has closed because of lack of product availablilty and planned to open again this week! Why sack all the staff if that is the case! It reeks of rats. Certegy have lost millions, only found out about this on Friday, do care about us blah blah, but waiting for formal word from owner of LA. Reporter is now onto ASIC to find out the names of the Directors.

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cellebear

Hey Fleur, I'd be keen to contribute to a support group on-line if you get one up and running. Very keen to see how you and Penny get on with your legal advice. Still waiting for someone to contact me here.

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Fleur

Great, least something is happening. I havent heard from Today Tonight. I just hope they have gone but then we can all have our contracts cancelled. I wouldnt trust LA again. There have been bad reports about them in the U.S. Now that I look back, it is really expensive for what we get. We have to pay for everything like bars etc on top.

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shazqld

ok i have just spoken to the people at certegy. they have stopped payment for 14days from my bank account. if LA dont open theie door again all contracts will be cancelled, if the do reopen we will have to still pay.

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Fleur

Hi Cellebear. I don't know how to get a web page up and going but I guess we could give out e-mail adresses and email a couple of times a week or more. Im keen. Why not? At least we would be getting support from others who are going through the same thing. Anyone interested, let us know. My e-mail is fleurharper@hotmail.com

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Penny

I cried when I was told how much I would have to pay for chocolate! First they said only $43 a f/n to join, then wanted a deposit of $150 then I asked over next two visits what can I expect to pay for the bars, wouldnt tell me. Then on that day where all was revealed wanted another $150 pulled out of thin air! Thats when I cried. Drained all my accounts and sent my visa over the limit, but new it would work for me and be worth it in the end. Now they pull this on me. Not the staff's fault it was their job, but I should have trusted my intuition, it always felt sneaky. Could have a great wedding with an extra $2500

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Fleur

I agree

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boraz

found company detials La weight loss
trading name LAWL SERVICES AUSTRALIA PTY LTD
ACN 116323123
REQISTERED OFFICE SUITE 603 LEVEL 6 12 CENTURY CIRCUIT BAULKHAM HILLS NSW 2153
I am a victim aswell
lets hope media gets on to this

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cellebear

Penny just got married 1 1/2 months ago so if you want any tips on keeping things nice but not paying a fortune let me know. Kept our wedding well and truly in line with tight budget and had heaps of people that loved what we did. Like you I joined whilst planning my wedding and felt guilty about putting that money towards LA and not my wedding. however, think of your photos with the weight you will loose. I didn't start early enough with mine and hate my photos. You still have plenty of time and sounds like you have the determination to get through this.

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cellebear

Fleur - just sent an e-mail through so hope you get it.

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Fleur

Hi Celle, yes got your email and a few others. People seem keen to get a support group going. I guess we could all think of ways to do it then all decided which we prefer. Who needs LA Weight Loss now?

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Shannon

http://groups.google.com.au/group/weightlossoz

Hi all, I've set up this little google group... i've never used it before so bear with me. You just have to sign up with google to join the group.

Shannon

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alun

Hi There,
My name is Alun I spoke to Certegy this morning they informed me that I would be liable for the debt being as they have already paid LA Weight Loss and they would continue to charge my Credit Card. So I have cancelled my Credit Card. Bank informed me that I may still be liable.
Has anyone had any advice telling them that they are not liable.
Also when I spoke with Certegy they said that LA would be making a statement today. I am not sure who to or where. If anyone hears anything please let us all know.

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Lisa
cellebear said:
Hi Karen - the number for Qld Law Society is 38425888. They gave me a couple of names I could try for civil litigation which is what they said would be required. I did ask about legal aid but wasn't given a number so if you get one, I'd appreciate it if you could post on here for me. I've rung one of the numbers they suggested and am waiting for[...]
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Lisa

Hi guys

I am also another victim. Thats great that certergy will cancel our contracts if they go down. I only have $200 left of the $2500 I paid all up. Do I get the money spent back? Are the contracts valid as someone said Certergy will only have one per person. I had two!

Like everyone else should have smelt a rat. No products and staff never staying. At Albany Creek staff never stayed for too long. You get to know someone and 'poof' they are gone. Did they work it out?

Like everyone else not sure where to go. Not keen to start again think I'm a bit burnt! But still desperately need to.

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cellebear

Hi Lisa - I'm a northside girl as well. Keen to keep going with things so if you need a buddy to keep up momentum let me know at celle_bear@yahoo.com and we can work out a plan of attack.

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Shannon

Lisa, don't give up!! If you are looking for a little extra support, check out the google group I've started (the link is a couple of posts ago).

Unfortunately, I don't think we'll get the money back that we've already paid but hopefully we'll at least get to stop our direct payments...

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