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November 20, 2013

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Home » Metro » Education

Blacklist warning to cram school bosses

BOSSES of private training institutes that fold suddenly leaving students and staff in the lurch will find themselves on a blacklist, market watchdogs said yesterday.

This comes after the Yisi Training cram school chain closed without warning earlier this month, when the owner ran out of money.

Left out of pocket were the parents of thousands of students who had paid tens of thousands of yuan in fees and teachers who had not received salaries for months.

Now the Shanghai Industrial and Commercial Administrative Bureau says that shareholders and legal representatives of private training institutes that shut without offering refunds will be banned from the industry for three years.

The campaign will cover companies whose business covers education consultation, education investment, education management and education services, said officials.

It will seek to uncover those offering education services beyond the scope of their license and have not sought approval, bureau officials said.

Private training institutes offering educational services without the appropriate qualifications will be ordered to stop, said officials.

To protect students’ fees, private training institutes must set up a deposit account and put 10 percent of their capital there, according to city regulations.

However, Yisi Training had no such account as its license was for providing different services.

The Economic Crime Investigation Division of the Shanghai Public Security Bureau is still investigating.

Not unusual

Such cases are not unusual.

In January, Think Try and Play Child Development Center — known as TTP or “Play Every Day” in Chinese — closed unexpectedly.

Parents were surprised to find the company was registered as a fitness center with the Shanghai Industrial and Commercial Administrative Bureau, rather than as an educational institution.

In July, the Shanghai Consumer Rights Protection Commission warned parents to be vigilant over education scams after a series of complaints.

Some education and training agencies delay classes, change teachers randomly or shut down without notice after collecting tuition from parents, the commission said.



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