Cancelled gym membership. Now they want to send me to collections.

[Robb235]

So I had a membership at one of those 24 hour workout anytime you want gyms. It was a year long contract.

In February, with a few months left on the contract, I found out I was relocating, and wouldn't be able to use the gym anymore. So I went in and asked them if I could cancel my membership early. They said I could. We filled out the cancelation paperwork, signed by both me and their rep. They said that I had to give 30 days notice, so since it was February, I would be billed for March as well. Ok, no big deal. They collect the key fob from me that gave me access to the gym, and I leave.

So March comes and they bill me like they said they would. Cool. Then comes April and they bill me for that month. Called and they said they are going to bill me through the end of my contract. Wait, I've got cancellation paperwork cancelling my account in February. They don't care, they're still billing me. So I dispute the charge with Visa. I submit the signed cancellation paperwork as supporting evidence and they reverse the charge.

Now the gym is threatening to send me to collections. How do I fight this so it doesn't end up on my credit? If they had told at the beginning they weren't cancelling my account and were holding me to the 1 year contract I could accept that. But the fact that they went through the cancellation process, took my key fob to the gym, and now are going back and trying to continue billing me seems wrong.

Anyone have experience with this?


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[wallytoo]

talk with an attorney.

fwiw, you've got copies of the signed cancellation. that's your ammunition against them.

edit: if they proceed with collections against you, and your credit is affected, then you'd possibly be able to sue them for damages. you'd probably have to apply for a loan or two somewhere under the premise of buying a new "whatever", but basically get denied the loan application because of the credit issue. again, talk with an attorney. the gym probably figures they can intimidate you into paying, and that whatever the charges are, you won't go to court/talk to an attorney. ymmv.

 

[stphnman20]

To be honest, only way for this not to hit your credit is to pay off the balance. If they sort everything out, they should credit you back.

 

[Bumbo]

I have gotten notices like this before from people like XM Radio...

Most of the time its just some automated system type deal to scare you into paying your bills or keeping your subscribed.

Most of the time I just ignore it... it sorts itself out.

 

[CXS]

Check the big 3 - Equifax, Transunion & Experian and watch to see if it hits. If it does files a dispute with each. Don't pay a penny, you have a cancelation to support your dispute.

Too many people cave to these things, don't be one of them.

 

[CoolMax]

Check the big 3 - Equifax, Transunion & Experian and watch to see if it hits. If it does files a dispute with each. Don't pay a penny, you have a cancelation to support your dispute.

Too many people cave to these things, don't be one of them.

Best advice.

If they don't have their own internal collection dept, they'll very likely transfer the debt to an outside collection agency and often times they can pass it on to anther collection agency, and so on - you'll have to monitor your report routinely.

You can also provide the Experian with a copy of the signed documents: https://www.experian.com/consumer/upload/

https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports

-former employee of Experian

 

[Robb235]

Thanks for the advice.


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[James444]

If you have cancellation papers, you'd better address the attoney and show them to him. The earlier you do this, the better.

 

[KingTaco]

If you only had a few months left in February, and agreed to pay March, I can't imagine that's a ton left on the balance. My advice: If we're talking about $150 here, just pay it and get on with your life. I know it's not fair. You're not going to get any representation from a lawyer for double that amount. A letter at best, and that's just a crapshoot, not to mention more weeks of worrying about it. Sometimes it doesn't matter who's right. What is best for your (long term)financial and mental well being? Is this the hill you want to die on for the next 6 months? It's a sh*tty strategy on their part, but they do it because it works. It works because it's worth stroking a check to make it go away. Sorry to hear you got hosed.

 

[JWaldz]

[MENTION=70922]Robb235[/MENTION]

Any update on this?

 

[Robb235]

Not really. I talked to who does their billing. I sent them proof of my relocation. When I originally cancelled my membership, my proof of relocation was my out of state drivers license. Now that's not good enough. So I had the HR department of my work give me a letter stating when I started work and that I'm still employed there. Haven't heard back from them.


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[TOY2G]

This is exactly why so many Americans don't go to the gym I guess.......

 

[tb-av]

Not really. I talked to who does their billing. I sent them proof of my relocation. When I originally cancelled my membership, my proof of relocation was my out of state drivers license. Now that's not good enough. So I had the HR department of my work give me a letter stating when I started work and that I'm still employed there. Haven't heard back from them.


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Not likely you will. It's just a third party collection agency grasping at straws. Very unlikely it will show on your credit. If it does, just send copies of the cancel contract to the Big3 as mentioned above. They will wipe. It's not going to hurt your credit.

If they initially contacted you via email you can very likely get rid of them with this web site. https://www.ic3.gov/default.aspx

Save copies of everything and just keep it with your other important papers. Loans, insurance, etc.

ETA: BTW, if you are still in contact with these people, and have something writing but to support your case and have them in writing demanding money.... contact them and ask for something in writing that states the issue is resolved. Any legit organization will do this. It's SOP. If they do not do so, tell them they 72 hours to do so or you will turn it over to the link above. Provide them the link. Be nice and matter of fact as though you are doing everyone involved, a favor. Pretty sure you will get an 'all clear' letter.

Sometimes everyone involved doesn't get all the correct data so they may have bought some closed accounts and think they are active and collectable. It's natural they need proof. So give them the benefit of the doubt and an ultimatum. Pretty much no one wants to know a government agency is looking into their business model.

You are going want an "issue resolved" letter though, if you can get one.

 

[Robb235]

Ok so update.

So the gym I was a member at (Anytime Fitness) uses a billing service called ABC Financial. A few days ago ABC Financial contacted me, and tried to bully me into paying up. We went round and round for a while, but the short story is I explained about the cancelation paperwork, signed by the Anytime Fitness rep. He says my proof of relocation that I provided Anytime Fitness (my out of state drivers license, which the rep requested and accepted as my proof), wasn't good enough. He demands that I get a letter from my employer stating when I started with this company (my whole reason for relocating), and that I was still employed there. No problem. HR department gives me the letter and I send to ABC Financial.

I followed up today requesting confirmation that the issue was closed, that I owed no money to either Anytime Fitness or ABC financial, and that no further action was required on my part. Response I get from ABC Financial is:

"I do apologize, the club stated that your proof of move was not accepted and that you are responsible for the contract. Sorry sir, I tried, the club does have authority in this matter. Thank you!"

 

[mwray8909]

Ok so update.

So the gym I was a member at (Anytime Fitness) uses a billing service called ABC Financial. A few days ago ABC Financial contacted me, and tried to bully me into paying up. We went round and round for a while, but the short story is I explained about the cancelation paperwork, signed by the Anytime Fitness rep. He says my proof of relocation that I provided Anytime Fitness (my out of state drivers license, which the rep requested and accepted as my proof), wasn't good enough. He demands that I get a letter from my employer stating when I started with this company (my whole reason for relocating), and that I was still employed there. No problem. HR department gives me the letter and I send to ABC Financial.

I followed up today requesting confirmation that the issue was closed, that I owed no money to either Anytime Fitness or ABC financial, and that no further action was required on my part. Response I get from ABC Financial is:

"I do apologize, the club stated that your proof of move was not accepted and that you are responsible for the contract. Sorry sir, I tried, the club does have authority in this matter. Thank you!"

That's total B.S.

I would say, like most, keep an eye it. If you are negatively impacted reach out the the big three. If it was me, I'd already be doing that and providing them with the same documentation to get a jump on it.

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[tb-av]

"I do apologize, the club stated that your proof of move was not accepted and that you are responsible for the contract. Sorry sir, I tried, the club does have authority in this matter. Thank you!"

Google ABC Financial. They are front end for Gym, and AF are independently owned. So owners basically buy in to that ABC financial management system. ABC F has horrible ratings.

Now that they have told you it's your local gym, get that in writing. Even if you have to email them. Just say you want to be perfectly clear that they are saying..... 'local gym said the relocation verification wasn't up to snuff' or something similar. It's hard to prove a phone conversation. give them a copy of the signed document again. Ask them how the gym can deny proof when they are the ones that provided proof? If they still balk....

Contact the gym. Just say you want their help -again- in clearing up a misunderstanding. Ask them if they would simply send you an official email or something on letter head re-verifying that your relocation was approved. Then attach a copy of the letter they gave you before. Ask them if they would specifically indicate that it is to inform ABC Financial of the relocation approval. Thank them for their help in advance.

IOW, don't blame anyone, just make it a matter of fact type thing. Things got lost in communication or whatever. You can try that via phone or email.

If that doesn't work right away like the next day, then send the same thing Certified mail. If you still get no response then you will have to use some of the resources at the bottom of this link...

https://www.consumer.ftc.gov/articles/0149-debt-collection

If you pay taxes and are being wrongfully harassed you might as well put some of your tax dollars to work for you. Just be sure you have all your ducks in a row and in writing.

Does your new business have a legal staff by any chance? If they would send the request to the gym on legal letterhead that would be ideal.

 

[Robb235]

I contacted Anytime Fitness's corporate office and informed them of what was going on. Each gym is independently owned, however I'm sure their corporate office has some degree of influence over them. Lady on the phone was nice, and she followed up with an email stating they were looking into the matter.

We'll see where it lands.


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[SaxAndLiz]

Try writing letters

Screw them at their own game. Write them a letter. If they call, tell them they have your official response, and you look forward to getting their response in the mail .

 

[spc54]

I swear a lot of these gyms have similar type methods with this stuff, happened to my gf a while back....

 

[Sammuel Waddell]

I also tried to cancel my gym membership because I was not satisfied of their services, but without success. It wasn't possible because of contract, so I had paid for the last two months for nothing. It doesn't matter now. My personal trainer was trying to give me fake steroids for muscle faster development. Thanks God one of my friends showed me the difference between fake and good SARMs. If someone is interested, you can check sarmsjourney.com lwhenever you want.