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JEDDAH, 24 March 2005 People seeking to lose weight lost their money instead. The fancy and extremely expensive Beauty & Diet center off Tahlia Street that opened less than two years ago closed its doors three weeks ago due to financial difficulties without repaying its clients fees. A statement posted on its door says the company is forced into liquidation and directs clients who have financial claims or owe money to it to contact the law office of Hassan Mahassni for settlement.

The partnership system is for each partner to be liable for his or her share of the company and we here only represent the foreign partner because it is the one that had put forward its share of the money to be returned to the clients, said Saeed Al-Qarni from the law office. He explained to Arab News that this settlement is a percentage of the total amount owed to the clients who can either accept it or seek complete reimbursement through the courts which can take a long time and cost them further expenses.

In addition, he said that there is no system to force the company to repay the clients. If the client agrees to the settlement, they sign a document stating that they would not ask the company for any further amounts.

One of the clients complained to Arab News that when she signed up for their weight loss program, the management insisted that she pay the full fee of SR10,000 upfront because that was their system.

What was annoying is that for a whole month whenever I came for my appointment they would tell me that they are overbooked and reschedule me and I didnt do any of the sessions. Now they went belly up and I cant get my money, she said.

Another client said that she went to Beauty & Diet before last summer and paid them SR8,000 for lipotherm and facial treatment. After going to four sessions out of the contracted 12, I decided not to continue with the treatment and asked for my money according to the contract but they kept delaying me for three months and now they closed, she said. She would not accept the settlement amount because she wants what is fully owed her.

The clients have every right to be angry because this is not fair to them. ... Unfortunately the Saudi partner has not returned its share of the clients money for reimbursement and we are doing everything we can including selling the equipment, Al-Qarni told Arab News.

He said that the center was badly managed but many clients fell for its promotional gimmicks. We have a list of around a thousand clients but only about 20 percent of them have come forward for their money even though weve put an ad in a local paper that we will accept claims for only a month. But we will extend that period because apparently not all the clients are aware of the situation, he said.

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Customers Lose Money in Weight-Loss Scam

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