The 20-year-old training giant, Weber English, suddenly closed its doors in a large area and spent tens of thousands of yuan on learning English. The students who borrowed by installments will face the dilemma of not paying back their money and having to go to the credit bureau to refund their fees indefinitely. Faced with the situation of no lessons, we have to continue to repay, who should pay for the financial risks in the educational scenario?
It started with a bulletin. On September 28, a self-proclaimed conscientious Weber English employee posted a notice saying that Weber English Beijing Company would declare bankruptcy. Beijing centres had stopped operating in the name of renovation or system upgrading, and there was no way to recover student membership fees and employee salaries. Subsequently, there was news of the closure of Weber English in Chengdu three campuses. Campus employees were also in arrears for several months. Students who had already paid for their salaries spontaneously set up chat groups and demanded refunds.
Weber English was founded in 1998. It is also known as the four giants of English training in China, along with the American Federation, EF and Wall Street. Its main body of operation is Shanghai Weber Education and Training Co., Ltd. with registered capital of 10 million yuan. According to Weber English official website information, as of July 11, 2018, Weber English has 154 training centers in 62 cities across the country, and its three major educational brands are Weber English, Weber Happy Bean Childrens English and Weber Hi English.
Yang Xiaorong told reporters: I added a lot of rights groups, looking for the Bureau of Education and other departments, there is no news at present. The staging platform has not responded so far. Weber staff gave me a form to fill in, let the sales application for a refund, or even put off saying that we should go through the legal process directly.
Reporters learned at the scene, Weber English students tuition in full payment form is a minority, mainly relying on bank credit card instalment or consumer finance company instalment loans, the duration of 1-2 years. In general, the number of installment orders in a single store accounts for 70%, while in some districts, the number of installment orders accounts for nearly 90%. Xuhui Mendian, visited only by journalists, has totally involved more than 50 million yuan.
At about 1 p.m. on October 10, journalists arrived as trainees at Weber Learning Center, located in the central area of Guangzhou City, which is still operating normally, despite Monroes sparrow. A training consultant at the center told reporters that Weber in Guangzhou is currently functioning normally for the time being. In addition, he also introduced to reporters Webers report fee model, each student fee is half a year to start, can pay in full, also can choose to cooperate with Weber financial institutions installment payment. If the student who chooses to pay by installments should pay one tenth of the tuition fee as deposit, the remaining money can be repaid by installments.
Reporters have noticed that there are many financial institutions cooperating with Weber, such as Guangzhou Development Bank, Zhaolian Consumer Finance, Jingdong Department, Duxiaoman and so on. More media have pointed out that some Weber students complained and were induced to sign up for a loan agreement of 20-40,000 yuan. In response to this, on October 10, Guangfa Bank Credit Card Center responded to the reporter of Economic Observer, saying that our bank is concerned about the recent media coverage of Weber English, and has suspended the staged business of Weber English. Our bank has communicated with Weber English for the first time, requesting proper handling and safeguarding the legitimate rights and interests of relevant students. If Weber fails to handle it properly, the trainees need to provide the relevant payment vouchers of CDB in the process of complaining to the departments of industry, commerce and market supervision, and we will cooperate fully. Guangfa Bank said.
On the same day, Zhaolian Consumer Finance Response reporter said that at present, Zhaolian Consumer Finance and Weber English cooperation business account for a small proportion, does 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 Consumption Finance Association will urge and assist Weber English to properly handle the trainees related to the Division and to fully assist customers in safeguarding their legitimate rights and interests.
In addition, Jingdong Department and Duxiaoman Qianhua, which belong to Jingdong Branch, did not respond to this.
According to the Notice on the Progress of the Resettlement Plan mentioned in the financial response of the recruiting federation, Webbo in Beijing has suffered from poor continuing operation and serious losses, which has resulted in the failure of campus operation and teaching services. Students can register for refund at school. The company is trying to attract new investors (even trainees) to join and inject capital, debt-to-equity swaps, and business negotiations with landlords.
The above-mentioned training consultant told reporters that tuition fees can definitely be refunded. If a training consultant said that he did not want his bonus to be deducted, there would be deception. If things get worse, Ill help my own trainees with refunds, but Im not sure how other trainees will treat their own trainees. He told reporters that after the incident, the companys top management still instilled such a concept: regardless of the outside news, there are new students to sign up for the regular collection of money, according to the regular bonus.
Who will pay for the scenario risk by stages?
If you dont pay back the money, you have to ask for credit, and you dont know how long it will take to refund it. Yang Xiaorong said frankly that she was in a dilemma. Now we hope that we can suspend our repayment through negotiation with the staging platform, but its very difficult.
In fact, the idea of Yang Xiaorong is the psychology of most students. Who pays for the risk of scenario staging?
A senior practitioner of consumer finance told the Economic Observer: Trusted payment is that the lender pays the loan fund to the borrower for the agreed purpose according to the borrowers application for withdrawal and payment entrustment, and the borrower repays the loan to the lender or financial institution by installments or one-time. The purpose is to reduce the risk of loan misappropriation, but the institution can run away halfway. Risk exposure.
The aforementioned person said: Although the staging scenario of educational services is good, it is more inclusive. Some companies are actually reluctant to do this business. Low profits, even loss, pricing will not be high, relative to other areas of earning money and business is not the best choice.
It is true that the lowering of training threshold was originally a major inclusive measure. Throughout the closed-loop, financial institutions acquire financial scenarios and interest acquisition, training institutions expand the size of the population with abundant cash flow, and trainees learn in an affordable way. Its hard to say who pays for the risk, depending on the contract. Generally speaking, staged institutions can say that customers borrow money to buy education, and whether the educational task is completed or not has nothing to do with them. Customers will say that you are united, since the education has not been completed, I will not pay back the money. A person in charge of retail risk of South China bank told the economic observer that the risk of such prepayment depends on institutional risk, capital management, deposit, etc. whether a single customer pays back the money is not a big risk, and the risk of institutional running is relatively large.
For risk prevention measures, he said that similar to public business, according to the judgment of the organization, it is necessary to determine the overall phasing quota, support and other means of monitoring and management.
According to the data released by the American Federation of International Education Group, which is engaged in IELTS offline English training, 43.5% of the students used instalment loans in 2018 and 42.2% of their gross income was generated by instalment loans. So, is there a problem of over-reliance on financial products by educational institutions?
To this end, Dong Xizhao, a special researcher of the National Laboratory of Finance and Development, told the Economic Observer, As long as relevant institutions do not conceal facts, do not bundle sales, do not mislead recommendation and there is no fraud, recommending formal financial products to users does not violate relevant regulations, nor is it a problem of excessive financial products. As for the choice of financial products in the student body, use and use, how to use, that is the students business.
Dong Xizhao said that financial institutions only provide financial products and services. As long as there is no problem with the products themselves and no illegal acts of financial institutions and cooperative institutions are found, there is no obligation to bear responsibility with financial institutions. However, financial institutions themselves should be more cautious in choosing partners.
Xue Hongyan also added to reporters: For financial institutions, the easiest way is to raise the threshold of cooperation and only cooperate with head training institutions, but the drawback is that head training institutions have fierce competition and limited business space. In order to make the scale bigger, it is necessary to deal with second and third-tier teaching and training institutions. Therefore, the real effective way is to strengthen process management and post-loan management, not only to monitor borrowers, but also to monitor teaching and training institutions. On the whole, this problem of wind control has not been effectively solved. Most financial institutions are far away from the education staging business. There is still much room to improve the market penetration.
Source: Responsible Editor of Economic Observation Network: Chen Hequn_NB12679