How to fight this? Gym membershio auto-renewed without notification, went to collections.

[manzanita]

Maybe someone can help me out with this...and perhaps others have experienced something similar.

WAY back in 2007, my husband and I stopped attending a gym (starts with a G and ends in Olds). We were each billed for the couple of months that were left in our contract after we stopped attending. The bank account we used to auto-pay the gym also closed not long after (we had just gotten married so started setting up our banking slightly differently and had no use for the account.)

As a result, a couple months worth of dues went into collection for each of us - which obviously is our fault. Fine.

Fast forward to today when I called the finance company that handles billing for the gym (*not* the collection agency) to find out who held the accounts and to verify the amount owed. My amount due was as expected - a couple of months of billing to end out the contract (ending in Aug of 07).

HOWEVER- my husbands account just kept right on billing as a result of an auto-renew clause in the contract.  Instead of owing around 100 dollars to pay for the contract ending in June of 07, his membership just kept on billing until June 08 and he owes close to 500 dollars!

From what the ABC financial rep explained to me is that it is the option of the club to determine whether or not to auto renew and convert the account into a month-to-month membership (auto-renewing each month).  The same clause was in my contract and they clearly chose not to auto-renew me and my contract ended as expected.

We received no notification from them that this was happening.  We lived in the same town for a year and half after, and even joined a different gym not knowing that his membership was still apparently active.  My issue is not just that we weren't notified, and not just that they opted to auto-renew him while choosing not to auto-renew me (which is what makes me think that someone knowingly made this decision and that it was not automated) - but how can it possibly be legal, ethical or proper to continue to bill a person on a month-by-month basis who has clearly abandoned their membership, had not used or made payments for several months prior to the end of the original contract and likely has no knowledge they are being billed? His account had even been sent to collections, while still being auto-renewed each month!

Is there any way to fight this? Based on the date of last actvity (last payment date i'm guessing) this should be out of NY's (where we now live) legal SOL by the end of March. The contract was signed in VA, where the contract SOL is only 5 years so it's already out there.  I realize we owe something here, but the additional year of billing "at the option of the club" seems like an abuse. 

How would the experts on here proceed?

**ETA** This account is currently reporting on my husbands report at the $100 amount but under the WRONG CA (Vision Financial) and only on TU.  Per the billing agency, the account had been moved to 1st Credit back in 09. I know that I can dispute the Vision TL as they no longer hold the account, but given what I have learned about the new amount due I'm afraid to wake the beast. 1st Credit is not reporting at all.

[RobertEG]

You have an issue of interpretation of the terms of the contract.

If the contract is clear, and they are definately in error, I would inititiate action in small claims court.  The FCRA dispute processes are not legal fact-finding processes that will give a decision as to who is corrrect.

If the contract is ambiguous and you are not sure of success, consult an attorney.

[manzanita]

Thanks for your response-

I was emailed a copy of the contract  by the OC's billing company- and it is clear, but not in our favor.

My issue here is the phrase "at the option of the club"  that is - they opted to do this, despite the clear fact that this was a membership that was no longer being used or paid for - for several months prior to the expiration of the original contract. And, they opted not to do this to my contract, despite the fact that all conditions were the same. And, why stop in August 08? Why not charge us each month ad infinitum as the contract does not state an end date? I guess my point is, it seems they made a knowing decision to do this. I mean I can see them auto-renewing for a few months - but a whole year? All the while attempting and failing to draw on a closed bank account...

So it's not a question of whether they can do this - they can and did...  it's more a question of what steps i can/should take to work this out?
 

Thankfully right now it's close to being out of SOL (I think? Any input on this?) and the higher amount/correct CA is not reporting. I have not been in contact with the correct CA.