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LA Weight Loss Centers close in Charlotte

06:49 PM EST on Friday, December 12, 2008

By FRANCES KUO / NewsChannel 36
E-mail Frances: FKuo@WCNC.com

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LA Weight Loss centers close

CHARLOTTE, N.C. -- A major franchise in our area folds. LA Weight Loss has shut all of its 10 centers in the Charlotte area.

Now, dozens of customers and employees are out of money.

Janet Johnston, who lives in Pineville, signed a two-year contract with LA Weight Loss. She completed the program but still has not received her rebate of $375.

Johnston said she suspected something several months ago.

"LA [Weight Loss] cut their hours and the people we had been seeing, our counselors, were no longer there," she said.

On Friday morning, Johnston arrived at a center on Pineville-Matthews Road and saw a sign on the door saying it had shut down because of economic conditions.

NewsChannel 36 tried to contact the 1-800 number listed on LA Weight Loss' website and only got a recording saying that "There are no LA Weight Loss Centers in your area."

The Better Business Bureau's Tom Bartholomy said a similar case happens at least once or twice a year. He said that if a company folds but has filed a bond with the state there may be backup funds, which may help pay back customers.

The Attorney General's Office in Raleigh says that the company has not filed a bond with the state of North Carolina.

"If [customers] did sign a long-term contract and the company was automatically debiting their checking account, that can be a bit a tougher to correct," said Bartholomy.

On the sign at the centers' doors, the company said it will try to get in contact with as many clients to give them back the products owed.

However, Johnston said she's lost faith in the company.

"I was depending on that money coming back to me," said Johnston. "That's dishonest. That's beyond dishonest."

If you are a customer and wish to file a consumer complaint, you're asked to contact the Charlotte Better Business Bureau at 704-527-0012 or the North Carolina Attorney General's Office, Consumer Protection Division at 1-877-5-NOSCAM.  The Attorney General Office's website is: www.ncdoj.com.

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