CA-> MATRIX ACCEPTANCE, LAYTON, UTAH I signed up for an American Family Fitness membership @ 44.95 a month. I got a job and moved in July and dropped off a copy of my Employment letter for the job in NY, at the gym in Richmond, VA(End of July). I was told I'd get a cancellation charge in the mail for 100$. I moved the same week, and left a mail forwading address with USPS. I never heard anything from them. Last month I got a call saying I owe 250$ in dues and fees and that my account was in collections. I told them about the move, and demanded a copy of my contract. They mailed me a copy of my contract and a notice saying that they wanted to collect the entire amount of my 3 year contract totalling 1500$!!! I called back (furious) and lashed out at the CA. He said that if I furnished proof of move they would process the cancellation now, BUT I'd be charged 500$ in dues + late fees + 100$ for cancellation. 500$ for 6 MONTHS of dues that total 270?? Is there anything I can do other than kick myself for being so laidback about the cancellation? I have bank statements from September.. I moved in July, and my I had a new card since August-- the old one was reported lost/stolen. Any suggestions would be greatly appreciated.
This is too common a practice in health club memberships. With some clubs, you will get stuck for whatever they thing they can get away with, regardless of what the contract says. The cancellation will somehow just never have been processed, or got lost, to be miraculously "found" once the heat is on. Or whatever you did to cancel, it will somehow not have been the right thing to fit within the contract terms. Or it will take several months to process, during which you still owe dues. That is why they typically structure these contracts as multi-year contracts converted to loans paid by your monthly dues, and those loans are then owned by a separate company. Anything to keep the whole contract amount, whether you are benefitting or not. File fraud complaints with the state AG, and local DA where you lived, with your new state's AG, and with FTC. Also file a BBB complaint, and a complaint to a local TV or newspaper consumer reporter can get a better response. Make it look like a few bucks aren't worth what it will cost them. Compliance may vary depending on who owns each franchise. See, for example the BBB reports on clubs even with the same company name. Some states have specific laws governing health clubs, their contracts, and cancellation. (California passed a new one that went into effect Jan. 1.) Some companies are under consent decrees with some states, based on earlier consumer complaints.
See if these reports sound familiar: http://www.ripoffreport.com/reports/ripoff145500.htm http://www.ripoffreport.com/reports/ripoff128300.htm http://www.ripoffreport.com/reports/ripoff122005.htm http://www.ripoffreport.com/reports/ripoff107304.htm
