Education will stage a risk event again.
Recently, a number of media reports said that the establishment of more than 20 years of veteran training institutions Weibo English suspected a large number of closed stores, “running the road” and “bankruptcy” rumors continue.
On October 10th, the Weibo English Beijing Office posted a Notice of Progress on the Student Resettlement Plan without a date and seal. According to the notice, Beijing Weibo was unable to operate normally due to poor management and serious losses. Participants can go to the school to register for a refund. The company is trying to absorb new investors (even trainees) to join and inject funds, debt-to-equity swaps, and business negotiations with landlords. The reporter could not confirm the authenticity of the notice, and the media reported that the contact information of the reserved staff could not be opened.
Weibo English claims to have more than 150 centers in more than 60 cities across the country. Among them, some Weibo English trainees complained that they were induced to sign a loan of RMB 2-4 million during the registration. The fund providers include Bank of Communications installment loan, Guangfa Bank installment loan, Zhaolian Consumer Finance, Baidu Rich Flower and Jingdong White Strip. Wait.
Among the above-mentioned financial institutions, on October 10, Guangfa Bank responded to the 21st Century Business Herald reporter’s inquiry, saying that it is concerned about the recent media coverage of Weibo English, and has suspended the Weibo English staging business.
On the same day, Zhaolian Consumer Finance, a joint venture between China Merchants Bank and China Unicom, said that at present, Zhaolian’s consumer finance and Weibo English cooperation business accounted for a relatively small proportion and did not affect the company’s normal business. In the recent online coverage of the education and training institution Weibo English, the division communicated with Weibo English several times. Beijing Weibo English has issued the “Notice on the Progress of the Student Resettlement Plan” on this matter, which details the situation in which the client wishes to resume classes and hopes to refund the fees. Zhaolian will actively supervise and assist Weibo English to properly handle the trainees related to the Division and fully assist clients in safeguarding their legitimate rights and interests. In addition, Jingdong Finance, a subsidiary of Jingdong, did not respond to this.
The Guangfa Bank Credit Card stated that it had communicated with Weibo English for the first time and requested proper handling to protect the legitimate rights and interests of the relevant students. If Weibo fails to handle it properly, the trainees will need to provide the relevant payment vouchers of Guangfa Bank in the process of complaining to the business sector, market supervision and other departments, and will fully cooperate.
Baidu’s Xiaoman Financial Customer Service responded that the “rich money” education phase is an independent loan relationship with the students. Because it is an independent loan relationship, in order to avoid affecting the credit information, it is recommended to repay on time. Jingdong Financial Customer Service also responded that it is necessary to repay on time according to the Jingdong white account period to avoid personal credit records.
Education staging agencies are caught off guard
As one of the businesses of consumer finance, education staging has been regarded as a high-quality asset with low risk. Some bank credit cards, degree Xiaoman Finance, etc. have made great instalments in education, especially in cooperation with language training institutions to carry out tuition instalments.
Some bankers pointed out that the risk management and control of education-based staged business development generally focuses on the fixed assets investment and cash flow of training institutions, and focuses on monitoring the authenticity of transactions.
However, the subjective sensibility of educational services is relatively high. Even if the organization does not maliciously defraud, consumers’ dissatisfaction with the training effect is likely to trigger a refund dispute, resulting in a lower willingness to repay the loan.
In the event of a risk event similar to “Weibo English Suspected Loss”, the participants who are willing to alleviate the financial burden of one-time payment are faced with the embarrassing situation of “no school to learn” and forced to pay the remaining staging. loan.
This risk event has caught the education staging agencies off guard. Jingdong Finance, a manual customer service, even responded to a reporter’s question, even made a classic mistake of “8 o’clock tonight”, “This is the same language for Weibo English, everyone is synchronized with the small partner” attached to the reply after that. Jingdong Finance’s website still hangs on Weibo Education White Articles to pay interest-free activities, the advertisement said that for the new users of education, the use of white bars on the Weibo official website will have the opportunity to enjoy 12 or 24 interest-free offers.
For the customer, the loan is “on the credit card. It is still unknown whether the tuition can be returned, but the loan still has to be repaid.
Baidu has the money to say that according to the agreement, if the loan demand is to be cancelled, the lender and the training institution need to cancel the training agreement, first apply for the refund service, and then apply for the loan refund service. After the education institution agrees to withdraw the application, the remaining training will be provided. The fee is returned to Baidu for spending money, and it is written off after receiving the payment. In another way, the training institution directly asks for the remaining training costs of the course through offline, and then spends money to pay back the money.
Jingdong Financial Customer Service also said that it used the white bar payment method to purchase English courses from Weibo. It is necessary to negotiate with the staff of Weibo English store to change the course or negotiate the refund according to the remaining class hours, and record the amount or time of the refund required. During the period, you must first repay the loan according to the white account period to avoid the record of personal credit information. After the refund of Weibo English, the remaining white balance can be paid off in one lump sum.
Torture education staging model
After the sudden occurrence of the “Weibo English Suspected Loss” incident, it sounded the alarm for the education tuition.
In fact, the education phase is basically the tuition period, whether it is for Weibo English, Wall Street English and other language training institutions, or for the K12 basic education of the current fire, the logical basis of the education staging is that students need to pay tuition at one time.
The education staging model is similar to the renting phase. The education staging is also paid by the financial institution to the training institution in one lump sum, and then the loan applicant (also the trainee trainee) pays the financial institution in installments.
In the business model, for banks, the Guangfa Bank Credit Card stated that installment repayment is a common financial business for credit cards, which facilitates cardholder consumption. Regardless of whether the cardholder chooses to pay in full or in installments when purchasing the goods, the bank pays the merchants in full at the moment the transaction takes place. In the process, the bank provides financial services for the transactions of both parties, not guarantee services.
Zhaolian Consumer Finance said that it insists on the formal education phased business and has strict management of merchant cooperation. The installment payment product is one of the choices that the customer chooses among the various consumer payment methods of the merchant, similar to selecting a credit card payment.
Baidu has the money to respond to customers, saying that after the loan relationship is established, the training fee will be paid to the training institution in one lump sum according to the agreement of the loan agreement.
How much does the training need to receive? There are clear restrictions on this policy, but the standard is to charge fees according to class hours.
On July 12, the Ministry of Education and other six departments issued the “Implementation Opinions on Standardizing Off-Changing Online Training”. The opinion clearly pointed out that “some training prepaid fees are too high, reasonable refunds are difficult, and user consumption risks are high.”
The Ministry of Education and other departments require that the charging time and teaching arrangements of the off-campus training institutions should be coordinated. The total amount of prepaid funds collected should be matched with the service capacity. It is strictly forbidden to collect prepaid funds beyond the service capacity. The prepaid funds can only be used for education and training. Used for other investments to ensure the safety of funds.
The standards set by the Ministry of Education and other departments are: “On a per-class basis, each department may not charge more than 60 class hours at a time; if it is charged according to the training cycle, it may not charge a time span of more than 3 months.” Establish a third-party account supervision mechanism to protect user rights.
Education is this piece of cake, is it honey or poison?
If you say honey, this year’s Meilian International Education Group, which went public in the US, has revenue of 1.424 billion yuan in 2018. The company is mainly engaged in IELTS offline English training. The United States and the small Manchu financial cooperation, so that student loans to pay tuition in 6-24 months; in 2018, about 43.5% of the students of the United States International use instalment loans, instalment loans to bring 42.2% of gross income.
In May of this year, Xiaoman Financial, which had been operating independently for one year, released data, credit credit users reached 330 million, total lending totaled more than 380 billion yuan, and education sub-sale business, Xiaoman has accumulated more than 23 billion yuan in loans, super 2 million people. More than 40% of the users are from rural areas, 15% are from state-level poverty-stricken counties, and over 800,000 users are college graduates. In December 2018, Xiaoman Financial also packaged the education phased assets into an asset support special plan for the first time.
Jingdong Finance has three consumer credit products, in addition to Jingdong white bars and gold bars, as well as renting houses, education and other scenes. Among them, as of the end of June last year, the balance of white bars was 32.094 billion.
Last year, Ant Financial announced that ant flower buds set up a special fund of 500 million yuan for education. In 2019, it provides loan subsidies for the needs of vocational training for adult users under 45 years old, and can obtain at least three installment interest-free concessions. It is expected that the whole year will be Support for 10 million people.
If the poison is said, in fact, in the “Top Ten Consumer Infringement Incidents of 2018” selected by the People’s Procuratorate and the Ministry of Public Security, including prepaid consumption “routing loans.”
In October last year, a number of English-language training institutions were accused of providing “training loans” ranging from thousands to hundreds of thousands by providing course loan services. The training institution Wall Street English was exposed to the students carrying 170,000 tuition loans, and the students embarked on a difficult road to rights protection.
In a broader sense, prepaid consumption has expanded from traditional beauty, hairdressing, fitness, catering and other industries to online car use, education and training, rental market, entertainment, and life services. Become a new problem in consumer rights protection. Since May last year, the problems of “rental loans” and “renovation loans” have been frequently exposed. Some long-term rental apartment companies and Internet decoration platforms have broken capital chains, and operators have run away, resulting in tenants without rent and renovation contracts. Performance, while consumers still need to repay the loan.