Copy of a post I made in the Oz forum recently. Don't even consider payment up front, no matter how attractive the deal. Off spring was at a school in Port Macquarie where such a deal was offered for an instrument rating, no thanks, company closed its doors within weeks, bar stewards were still cashing the cheques of those they had conned on the day they declared bankruptcy. Shortly before closure off spring had done some local flying at home in one of the schools aircraft, made arrangements with the local refueller (aero club) that I would honour any fuel costs incurred that they couldn't recover, and it came to pass. Wish I had they same foresight in picking the lotto numbers.
It begs the question that, despite being rejected by experienced aviators, are schools "getting away with" charging lump sum advanced payments? If so, why are bad practises tolerated, is it just newbies not knowing any better
They are preying on the persons trust, and gullibility to accepting a good deal. Really no different to any company going into bankruptcy part way through a contract you may have with them where you lose funds eg insurance company where you have paid the premium in advance.