Direct debit charges

evh5150

I hope this is in the right forum!

The Queens University gym wants to charge me a £20 admin fee to start a membership with them. This is even before I pay for the membership itself. They claim this is the cost to them of setting up and maintaining a direct debit. Unfortunately, the only way to avoid the admin fee is to pay for the entire year up front.

To make matters worse, if you cancel your membership, you have to pay the admin fee again. The only way to "freeze" the membership is to offer proof that you are working abroad, or to produce a doctor's note to say that you are injured and cannot use the facilities.

How much, realistically, would it cost to maintain a direct debit such as this? Other than pester my local MP about the situation - it isn't as if he can do anything, anyway - is there anything I can do? I'm guessing not!

jonesMUFCforever

They can charge what they like as long as you are advised of the charge upfront (as in this case) just as you can choose an alternative gym if the terms and conditions are not to your likening

opinions4u

They can charge what they want.

If you are happy with the price, buy the service.

If you are not happy with the price, go elsewhere.

It's called a free market economy.

They claim this is the cost to them of setting up and maintaining a direct debit

Compared to a lump sum up front payment of a year's fees, it's probably about right, especially when there's the higher risk of monthly payers not fulfilling their contactual agreement to pay for 12 months.

Other than pester my local MP

Honest feedback? You are being ridiculous.

Best money saving tip: Excercise at home, jog, use the stairs at work etc. That costs nothing!

evh5150

opinions4u wrote: »

They can charge what they want.

If you are happy with the price, buy the service.

If you are not happy with the price, go elsewhere.

It's called a free market economy.

Compared to a lump sum up front payment of a year's fees, it's probably about right, especially when there's the higher risk of monthly payers not fulfilling their contactual agreement to pay for 12 months.

Honest feedback? You are being ridiculous.

Best money saving tip: Excercise at home, jog, use the stairs at work etc. That costs nothing!

Our local MP is already being pestered, and has commented on the matter. It wouldn't let me post the link earlier as I am a new user. If you Google "gym admin fees" it's currently the second story in the search.

evh5150

I know I had a bit of a rant about the fees, but the reason I put it in this forum was because I was keen to know if £20 was the true cost to them of the direct debit.

YorkshireBoy

evh5150 wrote: »

I was keen to know if £20 was the true cost to them of the direct debit.

They won't have that level of breakdown on their costs.

However, what if they did and the true cost (associated with it) was found to be £10. Are you saying you disagree that they can make a 100% gross profit on it? If so, why do you let Tesco et al do the same with your weekly shop, and Next with your clothes!?

evh5150

YorkshireBoy wrote: »

They won't have that level of breakdown on their costs.

However, what if they did and the true cost (associated with it) was found to be £10. Are you saying you disagree that they can make a 100% gross profit on it? If so, why do you let Tesco et al do the same with your weekly shop, and Next with your clothes!?

I take your point, but it is a little different because it's a university gym, and it's already become a political matter. If I can help to put political pressure on them in any way, by showing that it doesn't cost that much to keep the direct debit, for example, I'd like to do so.

Malory

I think this is more of a consumer's rights issue than a banking issue. Maybe you are better off posting in the Consumer's Rights forum.

zppp

evh5150 wrote: »

I take your point, but it is a little different because it's a university gym, and it's already become a political matter. If I can help to put political pressure on them in any way, by showing that it doesn't cost that much to keep the direct debit, for example, I'd like to do so.

I think you fail to understand. The university is still a commercial organisation, and will make money from ancillary services. I doubt very much that they will sell you a can of coke at cost price - just because you are a student changes nothing.

I had a meeting with a company who processes direct debits before (for a venture I was looking into). The company dealt with Councils mainly, but did some private contracts. I believe the charge was something like £1.25 per payment. £1.25x12=£15 They also charged for a merchant account, and for any amendments to the direct debit. Therefore I have to say that unfortunately £20 per year seems a fair enough charge. Now for a bank, it probably costs next to nothing due to the hundreds of thousands of direct debits, but for one gym, the fees are higher, due to them taking hundreds of payments rather than thousands.