Debit Finance chasing gym payments but gym has closed!

tirednemotional

Hi,

This is my first post and I'm a total noob so go easy on me!

I've just received a letter from Debit Finance saying I owe a month's gym subscription and generally waving their fist at me. I have recently cancelled the DD at my bank because the gym that i had signed a contract with no longer exists.

This is where it gets REALLY complicated, so bear with me...

The owner closed the doors and declared himself bankrupt a couple of weeks after I signed the contract (contract signed 3/11/11-ish - gym closed mid November '11). I had been a member there (paying a monthly subscription), under a different contract, for over a year and had fully fulfilled the term of that contract. I'd known of the possibilty of the gym closing at the time of the new contract being signed and expressed my concerns to the owner who assured me that if the gym did close, that he would call the finance company and stop my contract there. I asked my bank to stop the DD at the time but for reasons unknown they hadn't hence my stopping it recently.

Since closing, the gym has been taken over by a new owner and the letter I've received from Debit Finance shows me as having a contract with them - eventhough I haven't signed a contract with them or been notified of them taking over my membership.

I've since joined a different gym and am now in a new year long contract.

Any advice, thought or comments would be appreciated.

pinkshoes

How long was the gym closed for?

unholyangel

Is it a new business or just a new owner? How long was the gym closed for?

tirednemotional

Thankyou for your prompt replies.

It wasn't closed for long at all - maybe a couple of weeks.

tirednemotional

Forgot to add - its a new business.

arcon5

To clarify "new business" -- is it a new company completely or just new ownership/new director?

Is there a clause in the contract allowing them transfer/sell the contract to a new company?

tirednemotional

Its a new company altogether - new owners and name. I've spoken to the new owners asking if its a case of 'old gym trading as new gym' but they've confirmed that it isnt. Also, afaik, the business wasn't bought from the old gym owner - it s a new business (albeit using the existing equipment from the old gym) operating from the same premises (they pay a rent to the owner of the building, as did the old owner).

As for the contract - i've had a look through it and couldn't see anything mentioning this scenario but I will double check (not at home at the mo).

mountainofdebt

I'm just wondering if the arrangement was that debit finance paid yoru gym fees to the old gym on your behalf and you effectively have to repay debit finance - so in effect they are a credit agreement company and hence your 'debt' is with them and not the gym?

What was the reference on the dds?

If this is the case you really do need to know what you signed as I would imagine - if this is the case I would suspect you are still liable for the debt

unholyangel

mountainofdebt wrote: »

I'm just wondering if the arrangement was that debit finance paid yoru gym fees to the old gym on your behalf and you effectively have to repay debit finance - so in effect they are a credit agreement company and hence your 'debt' is with them and not the gym?

What was the reference on the dds?

If this is the case you really do need to know what you signed as I would imagine - if this is the case I would suspect you are still liable for the debt

If it were a credit agreement, it would be cancelled the same time the membership was.

wealdroam

OP, who cancelled your contract? Did anyone?

You say that you cancelled the Direct Debit, but that is not the same as cancelling the contract.

Are you sure, i.e. have you anything that states, that the old company has closed?

Is the contract you renewed in early November-ish also a 12 month contract?

DVardysShadow

tirednemotional wrote: »

I'd known of the possibilty of the gym closing at the time of the new contract being signed and expressed my concerns to the owner who assured me that if the gym did close, that he would call the finance company and stop my contract there.

You have been scammed as I see it. There is no need for gym contracts to go through a finance company whatsoever. You pay the gym month by month and that should be the end of the matter.

Obviously the owner knew it was going down the pan, so you actually have 2 contracts. A gym contract paid up for a year with a gym that has gone bust. And a finance contract with a company which paid the gym upfront for a year's membership. He has waltzed off with your money and has no obligations, because he has goen bust. Meanwhile you owe the finance company for a years gym which you are not getting.

Have a look at your paperwork. I think you will find I am right. Sorry