General Credit Topics

[pgsparx]

Hi!  I have, in the last couple years, raised my score from high 500s to low 700s.  It hasn't been easy as most of you know.

I don't want anything to ruin my hard work.  I'll try to keep this brief.  I joined a gym and signed up for personal training.  I have 15 training sessions at $35 apiece remaining.  The gym is closing it's doors on 12/31/12 with no notice given to members, my trainer told me privately.  Obviously I won't get the remaining sessions in before 12/31.  My trainer is moving to another gym and I'm following him.  He's awesome. 

However, my 15 sessions are gone, no refund for them.  Thats a lot of money so I charged the amount back on my credit card.  Even though the gym is closed and due to state laws I am not required to move to another one of their gyms because it is more than 8 miles away.  If I win the charge back can the gym's corporate headquarters sue me?  Report to the bureaus?  Everyone at the gym says they can't do anything to help, it's out of their hands.

Thanks for reading!

[pizzadude]

Do you have access to the original contract or agreement that you signed ? Was the amount paid for the sessions non~refundable ?

[pgsparx]

i do have it.  it doesn't say anything about cancelling as it is month to month but i had overpaid because i was paying for months that i couldnt attend for personal reasons.  my trainer said that he understood and would keep all my sessions active.

it does say to contact them before doing something like a chargeback.  i called multiple times, emailed, messaged them through their website and no response.

i just found out my trainer is giving me 15 free sessions at the gym he's going to be working at so he's eating the $525.  i want to pay him though, i feel terrible.  he shouldnt have to lose out because the company he worked for is unethical

[RobertEG]

Check out filing a formal complaint with the creditor under the Fair Credit Billing Act (FCBA), which is a compulsory dispute process for handling billing disputes.

It was enacted for just such issues. It will provide the paper trail you need.

I would not wait for it to reach the credit reporting stage.

[pgsparx]

Thanks Robert. I found a sample letter. I tried again to reach someone at the club and the corporate office. Same old thing no one available, no calls back

[chasmith]

You mentioned they have other gyms that will remain open.  I wonder if a BBB complaint would help.

[McArthur]

Do the chargeback now.  There's a timeframe within you must initiate the chargeback and waiting puts you at risk of missing the deadline.  Also, there is the very real possibility the gym will file for bankruptcy.  In some instances that can also be a factor.  

It is unlikely they will come after you if you are successful with the chargeback. 

[Walt_K]

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McArthur wrote:

Do the chargeback now.  There's a timeframe within you must initiate the chargeback and waiting puts you at risk of missing the deadline.  Also, there is the very real possibility the gym will file for bankruptcy.  In some instances that can also be a factor.  

It is unlikely they will come after you if you are successful with the chargeback. 

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They way I read this thread, OP is saying that a gym with multiple locations is closing a single location.  So I don't think it's so clear that the gym will file for bankruptcy or that they will not come after him for a chargeback.  A lot of that probably depends on the corporate structure, e.g., are all locations centrally owned, are they franchisees, etc.  But I wouldn't be too quick to dismiss the idea that they might pursue collection of the money. 

This is not to say that there are not valid reasons why they should not be able to pursue a claim. 

[pgsparx]

I did the charge back, sent letters to the gym, the third party billing co. andmycredit card with documentation on why they can't collect including my contract, the 10 mile rule off the Missouri AG website and Google map printout showing the 13 mile distance between clubs. My contract with the gym states 8 miles so that alone should cover it. Thanks for all the help