The Consumer Council has received so far (14 to 19 May) a total of 142 cases of complaints concerning the closure of Planet Yoga, involving a total amount of $1,562,433.
Due to the sudden closure of the above company, the Council advises the affected consumers to consider taking the following steps:
1. Submit a written proof of debt to the provisional liquidator to register as the company's unsecured creditor.
2. Those who have recently used credit cards to sign the prepayment contracts with the company and have made a one-off full payment should contact the card issuing companies immediately to request for a refund on the unused service. The letter to the credit card issuing company should include:
- credit card number,
- name and contact numbers of the card holder,
- name of the concerned company,
- transaction date and amount,
- requesting the card issuing company to contact Planet Yoga's bank for a refund due to the company's inability to provide the agreed service,
- all related documents, such as payment slip, monthly statement, contract with Planet Yoga and receipt copy.
3. It might be handled differently if the payment was made by instalments. But affected consumers could still try to write to card issuing company to request for assistance.
However, the Council adds that there was no guarantee that by taking the above steps the affected consumers will be able to receive the refund.
As the company's closure involves a large number of consumers and different repayment methods, the Council advises the affected consumers to contact their card issuing companies as soon as possible for the refund.
Consumers contemplating of using credit cards to pay for services should take note of the followings:
1. It might be possible to demand a charge back from the card issuing company if the agreed service is undelivered after a one-off full payment is made.
2. Read the terms and conditions carefully before entering an instalment payment contract with the card issuing company, e.g. whether the card holder is required to continue payment in the case of shop closure or inability to provide agreed service.
Consumers are again reminded not to make too substantial amount in prepayment to avoid risk and unnecessary loss.