Hi There, Does anyone know if it's possible to get recovery from payment to an online coaching program that gave a "guaranteed income, no money back" promise in the coaching area? This was about two years ago. A person I know had started online and paid several thousand of dollars for online coaching. The person involved promised that he would work with clients until they had a guaranteed return on their money, no matter how long it took. Apparently it didn't take long for the guy to decide to stop coaching on the "guarantee." Any directions on whether this can be pursued for recovery of funds paid or how to get started with investing this? The "coach" uses a Canadian address, the client is in the US. Thanks Writingright
Depending on the state, the statute of limitations may or may not have run out on the transaction. 1-2 years is a common SOL in those types of transactions. State SOL would only matter if he's really a US citizen and lied. If he is here in the US, you can sue him in your local circuit court (or small claims) OR in his state's circuit court (or court that handles small claims less than $5,000). This is referred to as "Long Arm Statutes". If you paid by credit card, you are likely past their chargeback period as well (usually 6 months for a lot of companies). Unless the Canadian (if he's really in Canada) has assets here, there would be no logical recourse but to file an action in Canada. That wouldn't be worth it for the dollar amount more than likely. If he's international, the case could be filed in Federal court here. There is a specific type of federal court that handles international cases. Again, unless he has assets here in the US, it's useless to do anything because there is no way to collect. If there was a oral contract involved and he lives here in the US, the Statute of Frauds would mean it should have been in writing. Written contracts are required for many types of contracts in excess of $500. He acted in bad faith by not completing the terms of the agreement so you would have grounds there too possibly. Almost all states have Statute of Frauds on the books. If I recall correctly, Lousiana is the only one that doesn't (trying to remember back to that business law class). The only way an oral contract can be enforceable (and thus the "no refunds" policy) is if he completed the terms of the contract. For more info Google: Long arm statutes, Statute of Frauds Hope this helps David Beyer
Greetings David, Thank you for this detailed response concerning this matter. I rather think that my friend will not be able to get recovery on this case which will be very unfortunate. Unfortunately, this type of think can cause a potentially great entrepreneur to stop pursuing success online with the fear of scams and rip offs. Looking for the good in the bad, lessons like this can only be used to help others to be much more careful when engaging in any type of professional relatioship in the web world. Again, I appreciate your help with this. Writingright
It is getting more and more difficult to conduct business. You practically need a law degree these days or a lot of $$ to pay for an attorney to cover yourself. Then you have to worry about the ripoffs. In the end, those people will get what is coming to them. It all catches up at some point. Unfortunately, there have to be victims along the way. They are getting smarter and more sophisticated too. David Beyer
Hi David, Thanks for the added information. If all you did was study business law you really have a gift for this topic. I tried to look online for some information and didn't find what I needed. Have you thought about doing a web site on this type of topic to help honest online marketers know what to do and what to look for as afar as legal questions in doing business online? Overall, I think I'll just share this information with my friend. I think he'll probably want to just move on instead of trying to pursue the guy. Sometimes, you spend good money after bad trying to get your money back. Take care, Writingright