<p>My son was a karate student. We signed a two-year contract two years ago which allowed the school to take money out of our account automatically every month. Son decided he didn’t want to continue, so hubby asked the school when the contract was done and we were told we had another year (making it a three-year contract). Hubby didn’t remember that and asked for a copy of the contract, which he got. It was a two-year contract with a handwritten notation by someone else adding a third year. Hubby did not initial that change and when I discussed it with him, he had no idea about any such thing, and neither did I. It looks like someone added that paragraph later, but we’re not sure. So hubby argued with the head of the school back in July and was told that our last payment would be October. He verbally confirmed this two more times and stood there while the manager reviewed the computer record and was assured that October was the last month. Of course, the money was taken out again today, the sensei is nowhere to be found, and the person at the desk told my husband we have another year on the contract. We’re not sure what to do now, possibly close the account, but that has problems. Ask the bank to decline that transaction, for sure, but almost $200 is gone for this month and I’m expecting an epic battle with these people. Hubby can’t prove that he spoke to anyone because he didn’t get it in writing. I’m assuming that they will take legal action and we’ll have to defend ourselves, which is fine, but does anyone have any advice or suggestions for me – any experience with karate contracts?</p>
<p>Long term contracts at martial arts schools are like long term gym contracts. The owners bank on you paying and hope you lose interest and don’t show up so that they can oversubscribe the memberships. I bet the school also told you there was a fixed schedule of belt promotions at regularly defined intervals. Most respectable and honest martial arts schools simply let you pay month to month.</p>
<p>Treat it like any other consumer dispute. Your husband did not sign the contract for a third year. Put a stop on the payments at your bank and send a letter to the school by certified mail return receipt requested and by regular mail putting them on notice that you have stopped the third year payments and why. You may also want to contact your state attorney general’s office. Many states have departments set up to address unscrupulous health/gym/sports club billing practices and in addition, what you have described could be fraud. Your state AG’s office or the appropriate department can help you recover the payment that was taken.Remember, if they try to sue you, they will have to prove the existence of a three year contract. Good luck.</p>
<p>Go to the bank and have them stop the automatic payment.</p>
<p>Sounds like you never agreed to it. Two years is enough.</p>
<p>Hi Zoosermom, I’m a contracts lawyer and my son was a karate student for over 10 years, so I hope I can help. (As an aside, we always paid a year in advance because we not only got a discount but I always avoid, in all circumstances, allowing any business to automatically make deductions from my bank account).</p>
<p>I’m assuming your husband kept a copy of the contract they provided when he asked (if not, ask again and make a copy); so even though you don’t have the manager’s agreement to stop payment in October in writing, you have a solid piece of evidence with the original 2-year contract with an handwritten change not initialed by you or your husband. It might also be worth it to go through your old files/folders to see if you kept a copy of the original contract.</p>
<p>Do what MichaelNKat suggests by treating it like a consumer issue. Take all the steps he suggests. First and foremost, work with your bank to stop payments immediately, including showing them the contract with the presumably one-way addendum which you never approved (and the unmarked original contract if you can find it). There are lots of things that are suspicious about how that third year got written into the contract, and you have a very valid case that no third year was agreed upon. I am sure your bank will work with you to at least stop future payments.</p>
<p>If anyone has the right to sue anyone, it’s you as the customer. I would be very surprised if the karate school spent the time and resources to take you to court. Don’t be concerned about a front desk person who is an underling and has limited knowledge of the situation. Write a demand letter for return of the November $200 to you (and this is a good place to outline in writing exactly what the head of school/manager - including his name, title, date of conversation, etc.) agreed to with your husband, and a statement that you are prepared to contact Better Business Bureau, etc. Address the letter to the sensei, copying the manager. </p>
<p>Do not waiver on whether or not you agreed to a third year; you did not. Your agreement to pay through October (whether or not that was into the third year) was simply a compromise on your part and not an admission that you owed a third year. </p>
<p>Meanwhile, look into how much a small claims court filing would cost to see if it would be worth it to try to recover the $200. Karate school will want to avoid consumer complaints against it, small claims recovery, etc. Often you can recover court costs if you win (and you win if they don’t show up to defend themselves).</p>
<p>And don’t worry about whether or not they like you anymore! You are right, and they are wrong. So sorry you are in this situation! Let us know how it goes.</p>
<p>And now I put my lawyer hat away and the part where I assume the worst about everyone, and suggest that first you contact the school by phone or in person one more time to give them the chance to remedy the situation and credit back the November $200. </p>
<p>Don’t speak to the “front desk person;” find or leave a message (or several) for the head of school/manager with whom your husband came to the agreement earlier. Pleasantly convey that there must have been some mistake because contrary to your agreement in July, the money was still removed for November, and you’d appreciate the prompt credit to your account and another look at their computer system to be sure you are removed for future payments.</p>
<p>(And meanwhile, still work with the bank to make sure they decline any future debits from the karate school).</p>
<p>Good luck!</p>
<p>You guys are awesome. Thanks so much. We spoke with the bank to decline further payments to the karate school and I’m going to make a phone call tomorrow. If it isn’t a sincere mistake and immediately rectified, I’m going to send a certified letter.</p>