Weight-Loss Company’s Surprise Bankruptcy Spurs Clients to Sue

By Jessica Milcetich, York Daily Record, Pa.

Jan. 30–When Carole Wilkins, a registered nurse working with WellSpan, joined LA Weight Loss in May, her goal was to lose 60 pounds.

She was succeeding on the program, losing 40 pounds and feeling better about herself, when she found out LA Weight Loss, which in August changed its name to Pure Weight Loss, had filed for bankruptcy.

All of a sudden, the program she had relied on to help her lose weight was gone, and she lost more than $1,000 because the company made its customers prepay for the service and products.

Wilkins is just one of the thousands of Pure Weight Loss customers who were left dismayed after the company said in December it would close the doors of its 400 locations in January.

Friday, Attorney General Tom Corbett asked the Commonwealth Court to freeze the assets of Pure Weight Loss centers and its owner and president Vahan Karian, formerly known as Vahan Karabajakian.

That is the most recent action taken by the attorney general after the agency filed a lawsuit against the company and Karian on Thursday to force Karian and the company to refund customers the thousands of dollars they are owed.

The consumer-protection lawsuit filed alleges Karian and the company used deceptive marketing to sell long-term contracts for weight-loss services and products even after he knew it was going out of business.

The local Pure Weight Loss center on White Street in West Manchester Township has a sign in the window telling customers Jenny Craig will accept their contracts at a discounted price.

There are no Jenny Craig centers in York County.

More than 1,000 people filed complaints with the attorney general, totaling $500,000 in claims against Pure Weight Loss.

When Spring Garden Township resident Margaret Chronister joined the program in July, a month before it changed names, employees told her about discounted rates she would receive if she prepaid for the year on the day she signed up.

“I was definitely dedicated to the program,” Chronister said. “So I went ahead and did that.”

But when she was diagnosed with cancer in August and told by her doctor she couldn’t do the program, Pure Weight Loss refused to release her from her contract. Now that it closed, she’s fighting to get her money back.

Of the 1,000 people who filed lawsuits, the average claim was for $880.

The program was so expensive that some customers took out loans or paid with a credit card because they had faith the program would work for them, no matter what the cost.

Jo Ann Ness, of Spring Garden Township, was one customer who signed up for the credit card the company recommended.

Now she’s owed $1,060. Close to $850 of that is what she prepaid for the protein bars the program recommended.

For Wilkins, who is trying to continue using what she learned on the program, not having the bars has made it a struggle.

“Without the things I needed from them, I’m not gaining weight, but I’m not losing,” Wilkins said. “I’m just more heartbroken. It was the first time in years that I started to feel better about myself, and they just slammed the door in my face.”

QUOTES:

What people are saying

–”I just feel like the rug’s been ripped out from under me.” –Carole Wilkins, an RN with WellSpan

–”I get really upset. I had heard of LA Weight Loss for many, many years. I had no problem putting my weight in their hands, but it’s not working out so well.” — Margaret Chronister, Spring Garden Township

–”This last time I wasn’t losing weight because they changed the plan so much. They kept saying it was me, it was me, it was me. I just didn’t have the money to buy the extra drinks for the two-day fast and stuff.” — Christine Miller, York Township

–”This has been enough to put me off and try to make me handle my situation on my own. Too many people get away with this. You feel like you’ve been violated in some way.” — Jo Ann Ness, Spring Garden Township

–”I did lose weight and it turned out to be very expensive, close to $1,800.” — Bonnie Kornbau, Newberry Township

TO JOIN THE SUIT:

If Pure Weight Loss owes you money, you can join the Attorney General’s lawsuit by calling (877) 888-4877 or file a complaint online at www.attorneygeneral.gov.

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Copyright (c) 2008, York Daily Record, Pa.

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