Virgin Active - unfair contracts

hippey

Even though you have entered the contract it does not stop it being unfair, many contracts are deemed unfair even when they have been inforce for sometime. But you have to show a large element of unreasonableness and that the contract may/is written in a confusing or misleading manner.

You have to convince a judge that the contract is unreasonable to other people as well as yourself. That said I have never seen this contract and most gym contracts are very well covered but don't let that stop you! Just ensure you take proper legal advice first or your efforts could be costly.

frankbc

Ultimately, although this is often disputed, courts like to come to "common-sense" decisions.

In the case of PPI they came to the consensus that PPI had often been mis-sold. Automatic long-term rollovers are not used by mobile phone companies, energy companies and other service providers. I have a distinct feeling that those companies know such contracts to be illegal in a "common-sense" way.

Unfortunately, I have known Virgin Active to be a bit "slap-dash". They have incompatible computer systems across their clubs, which makes me worry about how secure their client's data is - particularly when the clients entry into the club appears to trigger their photo and other personal details to appear on the clubs system. I believe there have been more cases of locker room thefts than one might expect.

VA managers have sometimes been unhelpful, sometimes quite supportive.

I expect VA likes the 12 month automatic "catch-all" renewal, especially if the direct debit is not heeded by a customer who thinks the contract time is up - or he/she can cancel it anytime after the initial 12 months.

As every contract has to have some reciprocal benefit to the signee, they must justify the minimum period with administrative costs, inductions and perhaps a commission to the referer or employee who convinces the client (and often some goodies such as a rucksack or windbreaker).

This is how mobile phone companies work. They ask you to sign a certain length contract usually in return for a brand-new mobile phone. That's usually it. After 12, 18 or 24 months they must re-incentivise you to sign up with them again.

As Virgin Active has no new cost and offers no "new" incentive to the client, I believe any judge would say that an automatic rolling renewal for more than 1 month is unjustified. The initial contract has been honoured, the client had the initial special service or benefit and there should be a "new" incentive or "loyalty gift" etc.

The rolling renewal for 12 months takes (possibly unintentional) advantage of vulnerable people. This cannot be in accord with consumer protection laws.

People's circumstances change and the service provider has to make sure the client consciously and explicitly understands that a contract renewal is due.

To ask the client if he/she still wishes to continue the service (for another 12 months!) should be a clear duty on the part of the service provider.

I'm sure the courts will (sooner or later) take this view - if it is not already the case. If this is not so, perhaps these matters need to go to higher courts and eventually to the high courts. Of course one could not take VA to the High Court, Administrative Court, but one could take Quangos (possibly Trading Standards or Consumer Protection) to that court for not protecting the public sufficiently and efficiently.

The only worry is that this may take some time and companies like VA will still be publishing such contracts, which shows they do not understand people's natural or "common-sense" rights, despite the clear indication that they may have to compensate clients and may be fined.

System

This is an old thread so not sure why its been brought back, however one thing I would say about virgin gyms is a 12 month contract is about £10 a month cheaper than a monthly contract. I don't think its unfair at all for Virgin to auto renew every 12 months for people on these cheaper contracts, the alternative is after a year they get transferred to a monthly contract and pay an extra £10 a month, that would lead to more complaints from people. Everyone needs to take more personal responsibility for the contracts they sign up for and stop complaining about them when they want to breach the terms of the contract they have signed up for.

The Op's compaint is from back in 2009 so I am sure they have cancelled now, however the argument about people losing there jobs etc. is not valid as they have always had a break clause if you are made redundant.