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You should continue to pursue the matter. The employee represented himself as being able to enter into such an agreement. The employee is effectively an Agent for the employer and the employer is responsible. You relied on the employees statement to obtain the contracted services. It appears they admit their employee offered the payment of cancellation fees.
You should file a claim with the better business bureau. If no relief is obtained from the BBB then you should file a claim in small claims ( JP court) to get you fees back.
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