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  • FIRST POST
    • Bluntbanana
    • By Bluntbanana 11th Oct 16, 9:20 PM
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    Bluntbanana
    Gym Membership - Credit rating and legal issues?
    • #1
    • 11th Oct 16, 9:20 PM
    Gym Membership - Credit rating and legal issues? 11th Oct 16 at 9:20 PM
    Hi,

    So i joined a gym seeral months back on a one month renewing contract. (Not tied in for 12 months basically).
    The deal works that i dont pay until the date set, so 25th i think my payments go out, even though i may have signed up 10th for example.
    Problem came when i decided to cancel to save money, as i went for a few months and didnt have any opportunity to go again for the forseeable. I cancelled through my bank, closing the direct debit. All was fine until i started getting texts saying im overdue which i thought was fine its just them trying to get me to join back or something. But then after a few texts i was curious as to why they were still chasing, and i looked at their site and ive incurred a 45 bloody quid late payment charge. Now, it didnt state anything about late payment charges but ive recently checked and seen they do mention giving a months notice prior to cancelling.

    So, my question, will this effect my credit rating and can they have any legal grounds for the late payment charge? It seems ridiculous to me personally. They state they will pass this on to their debt collection department should i not pay.

Page 1
    • zx81
    • By zx81 11th Oct 16, 9:26 PM
    • 9,319 Posts
    • 9,138 Thanks
    zx81
    • #2
    • 11th Oct 16, 9:26 PM
    • #2
    • 11th Oct 16, 9:26 PM
    If you didn't cancel directly with them, then you probably owe them a notice period.

    In terms of your credit file, do the terms say that they will report to it?
    • Bluntbanana
    • By Bluntbanana 11th Oct 16, 9:39 PM
    • 4 Posts
    • 0 Thanks
    Bluntbanana
    • #3
    • 11th Oct 16, 9:39 PM
    • #3
    • 11th Oct 16, 9:39 PM
    Nothing mentioned about my credit file in their terms
    • zx81
    • By zx81 11th Oct 16, 9:47 PM
    • 9,319 Posts
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    zx81
    • #4
    • 11th Oct 16, 9:47 PM
    • #4
    • 11th Oct 16, 9:47 PM
    Then settle the bill with them before they instruct a DCA and further costs are added.
    • zx81
    • By zx81 11th Oct 16, 10:00 PM
    • 9,319 Posts
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    zx81
    • #5
    • 11th Oct 16, 10:00 PM
    • #5
    • 11th Oct 16, 10:00 PM
    Also make sure you contact them to cancel if you haven't already. You will have another month to pay from the date you cancel, of top of the charges and missed payments to date.
    • DCFC79
    • By DCFC79 11th Oct 16, 10:27 PM
    • 27,713 Posts
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    DCFC79
    • #6
    • 11th Oct 16, 10:27 PM
    • #6
    • 11th Oct 16, 10:27 PM
    Maybe it will affect your rating but only you can see your rating, if it will affect anything it will be your history.
    Je Suis Charlie
    • boliston
    • By boliston 11th Oct 16, 10:35 PM
    • 1,735 Posts
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    boliston
    • #7
    • 11th Oct 16, 10:35 PM
    • #7
    • 11th Oct 16, 10:35 PM
    A gym membership is not credit based as you normally pay monthly in advance rather than monthly in arrears like a phone contract. The only time it would hit your credit rating would be if they took you to court (highly unlikely) and you got a issued a ccj.
    • Moneyineptitude
    • By Moneyineptitude 12th Oct 16, 12:37 AM
    • 17,228 Posts
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    Moneyineptitude
    • #8
    • 12th Oct 16, 12:37 AM
    • #8
    • 12th Oct 16, 12:37 AM
    Why did you cancel "through the bank"? This will only have cancelled the Direct Debit, not the contract you still have with the gym.
    Most gyms have a one month notice period (some three), but you can't escape this period by simply cancelling the DD.

    You'll now have to pay the Late charges and STILL provide notice for the period agreed in your contract!
    • MEM62
    • By MEM62 12th Oct 16, 9:54 AM
    • 953 Posts
    • 623 Thanks
    MEM62
    • #9
    • 12th Oct 16, 9:54 AM
    • #9
    • 12th Oct 16, 9:54 AM
    Hi,

    So i joined a gym seeral months back on a one month renewing contract. (Not tied in for 12 months basically).
    The deal works that i dont pay until the date set, so 25th i think my payments go out, even though i may have signed up 10th for example.
    Problem came when i decided to cancel to save money, as i went for a few months and didnt have any opportunity to go again for the forseeable. We have all been there :-)
    I cancelled through my bank, closing the direct debit. You cannot cancel through your bank. What you did was stop making your monthly payments. You cancel your membership by contacting the gym. Until you do so the membership fees continue to be due. All was fine until i started getting texts saying im overdue which i thought was fine its just them trying to get me to join back or something. Perhaps you should have ready them properly. But then after a few texts i was curious as to why they were still chasing, and i looked at their site and ive incurred a 45 bloody quid late payment charge. Now, it didnt state anything about late payment charges but ive recently checked and seen they do mention giving a months notice prior to cancelling. The cancellation policy and any additional charges will be detailed in the contract that you signed.

    So, my question, will this effect my credit rating and can they have any legal grounds for the late payment charge? It seems ridiculous to me personally. They state they will pass this on to their debt collection department should i not pay.

    Originally posted by Bluntbanana
    Whether is impacts on your credit standing depends on whether the gym reports to CRA's. I am struggling to see why you thought that you could 'cancel with your bank' or that stopping payments cancels the contract. The legality of the charges will be established by your contract with they gym.

    As others have suggested. Pay up and learn from the experience.
    • Bluntbanana
    • By Bluntbanana 12th Oct 16, 5:36 PM
    • 4 Posts
    • 0 Thanks
    Bluntbanana
    Yeah my bad. Consider me educated!
    • Bluntbanana
    • By Bluntbanana 12th Oct 16, 5:56 PM
    • 4 Posts
    • 0 Thanks
    Bluntbanana
    Oh and it was a presumption i made - cancelling dd i presumed cancelled my membership.
    On reflection, a bad decision.
    • MEM62
    • By MEM62 13th Oct 16, 10:12 AM
    • 953 Posts
    • 623 Thanks
    MEM62
    Oh and it was a presumption i made - cancelling dd i presumed cancelled my membership.
    On reflection, a bad decision.
    Originally posted by Bluntbanana
    Ah.... we all live and learn. The positive thing is that you'll be wiser next time.
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