NEVER NEVER put money on account with any flight school.
Pay at the end of each flight and that will prevent you losing money.
NEVER ever pay one dollar on account, if the school puts pressure on you or offers a deal say no.
If they persist tell them to go f... them self and find another school.
I think it would be good that you first access the school and have someone recommend it first. I wouldn't go to a school unless it was well established and had a good reputation. Putting money on account has been quite standard at all the schools I've been to, they've all been reputable schools. I'm sure in a smaller town with a school that isn't a professional establishment I'd be hesitant to put money on account as well. It all depends what school.
Trust me, Harv's Air won't be going out of service anytime soon!
There is also protection for customers. Being 40 yrs later, I'm sorry but you're not going to get anything! You should have done something about it before. All my payments are put on with VISA or cheque, something that can be traced. If I do have a problem and they won't pay, there is something called a chargeback that the bank will force a repayment back to you. Also, small claims court is quite simple and if you keep your receipts and invoices you'll get your money back! These are all worst case scenarios and I've never had this experience or heard about it from other people I've run into.
It pretty much comes down to using your discretion. If I didn't feel comfortable putting money on account at a school, I would not do any training there.