We run, as you know, a buxiban in Taipei County. We’ve been working out a statement for our students’ parents for the “General Terms and Conditioins” … as we’ve experienced a number of odd issues this summer with absences and payments…
One parent came in: wanted a refund on two classes that her son did not attend. This was one of the more bizarre requests in the last few months.
I wonder if you could share some input on the content you might include regarding payments in your school’s (official or otherwise) T&C.
on the issue of missing classses we had a policy that we would “catch up” in a private or group session a max a three classes during a three month period free of charge UNLESS otherwise agreed on by the school and parents in special circumstances with advance notice. So, 3 freebies and that was it because we all know s#$@ sometimes happens. We did NOT ever refund at all. However, by prior arrangement or a lengthy absence, we would put a credit on the next block of classes to be purchased.
Your terms and conditions may vary as they will be yours.
Fees… always in advance. Three months in advance. We charged tuition and UP TO $1000NT per course in materials etc. If we worked it out as less than $1000NT we’d charge less. If it was more than $1000NT we’d never charge more, so that meant planning was important. We did cover many costs by making some of our own materials and charging an acceptable retail price for them and not just cost. That way we covered our butts a little more.
Make up classes. Never give money back. We had parents sign up for the new semester, and then change their minds. We did not want to refund their money as the class and materials were all set, and they had no reason (no complaint) against us, just someone at another school had sold them on a cheaper alternative. Now the government, we called, says we need only refund 70% of the tuition.OK, that sounds fair to me. And it sends a message to the parents that they can’t up and change their minds after entering a contract, ie paying tuition.
We never give refunds, but put credit on the next pay term. Our policy is simple. If a parent calls us about an absence before the class starts, we give a full credit for the next pay term. If there is no phone call, there is no credit. This helps make sure that kids miss for a legitimate reason, as parents hate calling to explain why their kid can’t come.
We charge half a year at a time, and if a kid misses a lesson, he or she must come in for a make-up class. (It’s not an option - it’s a requirement.) The kid then spends about 2 hours or sometimes a little less in class with a T.A. covering the material, listening to the tape (we record parts of the class when a student is absent) catching up on the missed vocab tests, doing the required drills and reading. An experienced T.A. can handle up to three or four students at a time, going back and forth between them to make sure they’re doing the work. It’s not as good as attending the class, obviously, but it’s better than no make-up class at all.
We don’t offer any refunds apart from those required by law. According to the MOE, if a paid-up student drops out before the term officially starts, a school is required to refund 75%, but if a student has taken less than 33% of the term’s classes, a 50% refund must be given. After 33% of the classes have been taken, no refund is required. If parents want cash back, we give them only the amount mandated by law. If the parents want the credit applied to another child, then we credit them for the whole amount.
We also don’t tie our semester to the number of classes, but to the calendar period. This means that if there is an official typhoon day off, called by Taipei City gov’t, we don’t make up the class. It also means that depending on where and when the public holidays occur, the number of classes per semester might vary slightly. We take one month off every summer, and two weeks (Sunday to Sunday) every CNY, as well as Christmas Eve and Christmas Day. We don’t take New Year’s Eve off.
The Taipei County Buxiban Establishment and Management Act requires Buxibans to refund 70% of all fees if a student decides to cancel seven days in advance. If the student has attended less than 1/3 of the classes in the course, the school must return half. Schools are also required to refund students for cancelled classes. If you are warned but do not comply within one year, your license will be revoked. Other jurisdictions in Taiwan have similar requirements.
The Fair Trade Commisssion has also ruled that certain types (wenli) Buxibans nationwide are required to disclose fully their terms for refunds in their literature and mentions that it will broaden that ruling if complaints are brought to its attention. Failure to do so is a violation of Article 24 of the Fair Trade Act. If the Commission finds you in violation of the Fair Trade Act it will order you to comply and if you fail to do so, will fine you NT$50,000 to NT$25 million. I’m pretty sure that a Buxiban would be fined at the bottom of the scale.
If I were a Buxiban owner I would be most concerned about the possibility of a complaint to the FTC since unlike local education authorities, the FTC is not in the pocket of the local buxiban industry association.
With my daughter’s school, we negotiate in advance of semester start how many days we expect her to miss due to planned vacations and how much that will reduce the tuition we pay.
That sounds like a model policy and one that is fair to the parents and the school (especially the full credit for classes). The only issue I can see here is disclosure. It would be a good idea to have all this written down clearly in the literature you give parents if you aren’t doing this already. Include what you will and will not refund, when they can do it, and deadlines. That will put you in compliance with disclosure requirements.
[quote=“Maoman”]We charge half a year at a time, and if a kid misses a lesson, he or she must come in for a make-up class. (It’s not an option - it’s a requirement.) The kid then spends about 2 hours or sometimes a little less in class with a T.A. covering the material, listening to the tape (we record parts of the class when a student is absent) catching up on the missed vocab tests, doing the required drills and reading. An experienced T.A. can handle up to three or four students at a time, going back and forth between them to make sure they’re doing the work. It’s not as good as attending the class, obviously, but it’s better than no make-up class at all.
We don’t offer any refunds apart from those required by law. According to the MOE, if a paid-up student drops out before the term officially starts, a school is required to refund 75%, but if a student has taken less than 33% of the term’s classes, a 50% refund must be given. After 33% of the classes have been taken, no refund is required. If parents want cash back, we give them only the amount mandated by law. If the parents want the credit applied to another child, then we credit them for the whole amount.
We also don’t tie our semester to the number of classes, but to the calendar period. This means that if there is an official typhoon day off, called by Taipei City gov’t, we don’t make up the class. It also means that depending on where and when the public holidays occur, the number of classes per semester might vary slightly. We take one month off every summer, and two weeks (Sunday to Sunday) every CNY, as well as Christmas Eve and Christmas Day. We don’t take New Year’s Eve off.[/quote]