Weber English boasts more than 150 centers in more than 60 cities across the country. Among them, some Weber English learners complained that they were induced to sign up for a loan agreement ranging from $20,000 to $40,000. The fund providers included Bank of Communications installment loan, Guangzhou Development Bank installment loan, Zhaolian Consumption Finance, Baidu Money Flower and Jingdong White Tips.
On the same day, CMB consumer finance, a joint venture established by China Merchants Bank and China Unicom, responded that at present, CMB consumer finance and Webers English cooperation business account for a relatively small proportion and do not affect the normal business of the company. The Department has communicated with Weber English several times about the recent online report on Weber English, an educational and training institution. Beijing Weber English has issued a Notice on the Progress of the Resettlement Plan on this issue, which details the situation of customers who wish to resume classes and refund fees. The Recruitment Federation will actively urge and assist Weber English to properly handle the trainees related to the Division and fully assist clients in safeguarding their legitimate rights and interests. In addition, Jingdong Finance, a subsidiary of Jingdong, did not respond to this.
Guangfa Banks credit card said that it had communicated with Weber English for the first time, demanding proper handling and safeguarding the legitimate rights and interests of relevant students. If Weber fails to deal with it properly, the trainees will fully cooperate with Guangfa in the process of complaining to the industry and commerce, market supervision and other departments.
Baidus Duxiaoman Financial Customer Service responded that wealthy spending education stages and students are independent lending relationship. Because it is an independent lending relationship, in order to avoid affecting credit reporting, it is suggested that repayment be made on time. Jingdong Financial Customer Service also responded by saying that the repayment should be made on time in accordance with the Beijing East White Title Account Period to avoid personal credit records.
Educational staging institutions were caught unprepared
As one of the business of consumer finance, education staging has been regarded as a high-quality asset with low risk. Some banks, such as credit cards and Duxiaoman Finance, have made great bets on the phasing of education, especially in cooperation with language training institutions to carry out the phasing of tuition fees.
Some bankers pointed out that the risk control of the development of phased business in education is generally concerned about the investment in fixed assets and cash flow of training institutions, focusing on monitoring the authenticity of transactions.
However, the subjective perception of educational services is high. Even in the case of no malicious fraud by institutions, consumersdissatisfaction with the training results can easily lead to refund disputes, resulting in lower willingness to repay loans.
If a risk event like suspected loss of Weber English occurs, students who intend to alleviate the financial burden of one-time payment will face the embarrassment of no learning and be forced to pay the remaining instalment loans.
This risk event caught the education staging institutions by surprise. An artificial customer service of Jingdong Finance even made a classic mistake of sending it out at 8 oclock tonight when answering a reporters question. It attached this is the language for Weber English, everyone is synchronized with their small partners to the reply. Jingdong financials website still hangs the promotion of interest free payment activity of Weber education white note. The advertisement says that for new users of education white note, they have the opportunity to enjoy 12 or 24 interest free discounts when they place an order on Webers official website.
For customers, the loan should be credit checked, whether the tuition fee can be returned is still unknown, but the loan still needs to be repaid.
Baidu Qianhua said that according to the agreement, if the loan demand is to be cancelled, the lender and the training institution need to cancel the training agreement. First, the lender and the training institution need to cancel the training agreement. After the education institution agrees to withdraw the application, the remaining training fee will be returned to Baidu Qianhua. After receiving the money, the lender will cancel the loan. Another way is to ask for the remaining training cost of the course directly from the training institution through the offline way, and pay back the money after receiving the cost.
Mode of stages of torture Education
After the incident of Weibo English is suspected to be out of touch, it is a wake-up call for the installment of education tuition.
In fact, the stage of education is basically the stage of tuition fees. Whether it is for language training institutions such as Weber English, Wall Street English, or for K12 basic education in the current fire, the logical basis of the stage of education is that students have to pay tuition fees at one time.
The mode of education staging is similar to that of rental housing staging. Education staging is also a one-time payment of tuition loans by financial institutions to training institutions, and then repayment by loan applicants (also trainees of training institutions) to financial institutions by stages.
In terms of business model, for banks, Guangfa Banks credit card indicates that instalment repayment is a common financial business of credit cards, which brings convenience to cardholdersconsumption. Whether the cardholder chooses to pay in full or in installments, the bank pays the merchant in full at the moment of the transaction. In this process, banks provide financial services, not guarantee services, for the transactions of both parties.
Zhaolian Consumer Finance said that it insisted on carrying out regular education staging business and had strict and standardized management of business cooperation. Installment payment products are one of the consumer payment options, similar to credit card payment.
Baidu wealthy customers responded that after the establishment of the loan relationship, according to the loan agreement, the training fee was paid to the training institutions at one time.
How much does the training actually cost? There are clear policy restrictions on this, but the standard is to charge according to class hours.
On July 12, the Ministry of education and other six departments issued the implementation opinions on regulating online training outside school. The opinion clearly pointed out that some training prepayment is too high, reasonable refund is difficult, and the risk of user consumption is high.
The Ministry of Education and other departments require that the fee period of off-campus training institutions should be coordinated with the teaching arrangement, the total amount of pre-paid funds collected should be matched with the service capacity, and it is strictly forbidden to collect pre-paid funds beyond the service capacity. The pre-paid funds can only be used for education and training business, not for other investments, to ensure the safety of funds.
The standard stipulated by the Ministry of Education and other departments is that if fees are charged according to class hours, no one-time fee of more than 60 class hours shall be charged for each subject; if fees are charged according to the training cycle, no one-time fee of more than three months shall be charged. In addition, we encourage the establishment of a third-party account supervision mechanism to protect the rights and interests of users.
Is it honey or poison?
In terms of honey, the American Federation International Education Group, which went to the United States this year for listing, has a revenue of 1.424 billion yuan in 2018. The company is mainly engaged in IELTS online English training. In 2018, about 43.5% of American Federation International students used instalment loans, which generated 42.2% of their gross income.
In May of this year, Xiaoman Finance, which has been operating independently for one year, released data. The number of credit-granting households reached 330 million, and the total amount of loans exceeded 380 billion yuan. In education staging business, Duxiaoman has provided more than 23 billion yuan of loans, more than 2 million people. More than 40% of the users come from rural areas, 15% from poverty-stricken counties at the national level, and more than 800,000 users are below College education. In December 2018, Duxiaoman Finance also packaged its education installment assets separately into a special asset support plan for the first time.
There are three types of consumer credit products in Jingdong Finance, which are not only white bars and gold bars, but also rental, education and other scenarios. Among them, as of the end of June last year, the white bar balance was 32.094 billion.
When it comes to poisons, in fact, among the top ten consumer infringement incidents in 2018, which were selected by the Peoples Procuratorate and the Ministry of Public Security, there are routine loans for prepaid consumption.
In October last year, many English training institutions were accused of offering course loan services to enable students to carry thousands to hundreds of thousands of training loans. Wall Street English, a training institute, has been exposed to the fact that the trainees bear 170,000 tuition fees and loans, and the trainees have embarked on a difficult road to safeguard their rights.
In a broader sense, prepaid consumption has expanded from traditional beauty, hairdressing, fitness, catering and other industries to online car use, education and training, rental market, entertainment, life services and other fields. It has become a new problem of consumer rights protection. Since May last year, the problems of rent loan and decoration loan have been exposed frequently. Some long-Rent apartment companies and Internet decoration platforms have broken the capital chain and operators run away, resulting in tenants having no rent and decoration contracts can not be fulfilled, while consumers still need to repay loans.
Source: Responsible Editor of Economic Reporting in the 21st Century: Wang Xiaowu_NF