Hi everyone! I've been a reader here for a little bit but have decided to ask for some help. I've never had any problems with my credit when out of the blue in March I recieved a collections letter from Asset Acceptance out of Michigan about a canceled Bally's membership from 3 years ago. Now it's a long story, but the membership was cancelled within 2 weeks of signing up and I had even kept the cancelation slip up until 6 months ago (ironic, isn't it?). So I get this bill for over $3500 saying it is from a Bally's account and a computer screen printout that looks like it was thrown together by a five year old. This Bally's account was originally out of state. I sent out my dispute and validation letter (via CRR) requesting a halt communication and collection activity and get the famous computer screen printout. The have a partial SS#, an old phone number, and do not list the address of the original creditor. Included it also stated the FDCPA laws stating a CA must verify a debt before resuming collections activities. It also states a the bottom, "Thank you for your request for further validation of your BALLYS account. Enclosed....(blah blah blah) Please contact me so we can work toward resolving this matter. This is an attempt to collect a debt and any information obtained will be used for that purpose." A second validation letter is sent out (CRR) with specific requirements of the validation (proof of contractual obligation, original creditor's address, etc. etc.) and state that I am not disputing they have my mailing address but rather that the alleged debt is mine. It also stated the FDCPA laws stating a CA must verify a debt before resuming collections activities. They respond with the same printout as the first contact and the first validation request with a cover page with the above quoted text and the computer screen printout. Along with that letter I recieved (the same day) a "Spring Cleaning" letter offering 30% off the debt. So it has been about 2 and a half months since the original validation letter was sent and I have yet to get any validation of any kind. What should my next move be? Hope to hear from everyone soon!! Thanks, Phoenix500
Contact your state AG, and the AG in the state this membership was in. You cancelled the membership, they accepted your cancelation, and then they are trying to collect anyway. Unfortunately, this is very common in the healthclub business. That is why you should not sign up for a long term contract for services such as memberships. There is no valid reason for a long term contract, other than to lock in the consumer. A predatory tactic from the start.
Is this a healthclub membership? If so, go to ripoffreport.com, and search on "Ballys". You will find many problems with cancelations. You might also try searching BBB.com for the particular city where they were located.
Next move? Make the problem very visible. BBB complaint, not just against AA but against the original creditor. Do you have a local consumer reporter?
You should also be aware of the following, from 1994: http://www.ftc.gov/opa/predawn/F95/bally-health.htm Also involving ballys, but a different CA: http://www.ftc.gov/opa/1999/02/perimeter.htm
