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Termyn8or -> RE: Gym membership wont let me cancel- any advice? (11/21/2011 10:34:16 AM)
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FR
That's one of those "if I only knew" situations.
In the old days if a bank checked your credit for a house loan or something they would see this and you could just tell them, "Yeah, that's an old gym membership" and you and the loan person would have a chuckle about it and get on with business. However now you are reduced to a number.
My volk have been all over this and these clubs have crafty words in those contracts, this means no accusation of fraud or anything like lack of consideration will work. You have basically agreed to pay their rent etc., whether you use the facility or not. there might be something in FTC rules about them not offering the contract without automatic renewal, but don't hold your breath. Laws are written for people who take your money.
First of all throw the phone in the garbage. Get a laser printer and a word processor, do everything in writing. You have options in writing up to and incuding claiming that you were non compos mentis when you first signed up, but it shouldn't have to go that far. Write it, declaration of cancellation, certified letters to the branch of the club, the main office and all three credit reporting agencies. You might want to send copies to the FTC and your state attorny general's office. Hey, copies are cheap, but postage is not when it comes to this. Also consider publishing it in the legal section of the local newspaper. This all costs money of course and as you send these copies out, it's ALL certified mail.
Make sure ALL addressees are listed at the top of each and every copy, i.e. that the home office of the club is well apprised of the fact that the FTC is getting a copy as welll as the newspaper etc. Ninety nine times out of a hundred they will back off and cancel the account. You might have to pay up the current balance to keep your credit fit but consider it the cost of education.
Gym memberships are a really effective scam. People sometimes pay more for that than it would've cost just to buy the damn equipment and have it at home. This is a great scam, I couldn't have done much better myself. You think fifteen bucks a month isn't much, but figure that out for a year and multiply by the number of people who don't look at their bills, have been trying to cancel for years, actually want to use the gym and the fringe element who actually DO use the gym. And it's guaranteed income for them. Solid as a rock, unlike investments. And even if they never get blood out of a stone it's still on their accounts recievable and a company asset. Like leased cars, ya ever figure that out ? Car companies can make millions without selling any cars, and all those cars are still part of their net worth. The depreciation is tax deductible for them, but not for you if you bought it.
Never allow any automatic payments from anything, and if you really can't avoid it make sure it never comes out of your main account.
Oh and BTW, when someone said it will affect your credit score adversely ? Fukum. I'd bet they wouldn't waste the damn time to send in a bad report on you, and I'm not sure but I think this type of thing will not have as adverse an effect as say, going fifty grand in unsecured debt and stiffing them.
I'll have to give some though as to exactly how to word the notice, but the important part is that it goes to all kinds of people, file it with the clerk of courts, send copies to the gym, the home office, parent company, your, or some random lawyer's office, I can think of a few more but you list all these addressees on all copies. Oh, might as well include a TV station or two as well as the better business bureau. With time and beer I can think up a few more.
One other thing. DO NOT pay the balance (if you choose to in the first place) until AFTER you have confirmation in writing that the membership is cancelled. Even through a bankrupcy, DO NOT pay any of the past creditors anything or else you reenable them to initiate collection actions. DO NOT PAY until you see something in writing and you might just want to have a lawyer look it over.
This is just the basic advice, to get more specific I would have to actually read their contract. Maybe it can be found online ?
T^T
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