Debit Finance chasing gym payments but gym has closed!

unholyangel

tirednemotional wrote: »

This is exactly how I see it but no doubt they will use the clause posted above as legitimacy for the new gym taking on my membership(?).

I'll try the consumer direct site too.

Thankyou so much for all the time & effort you've spent on this.:A

Cheers.

They can't. They are not the service provider mentioned in the contract. They are merely the collecting agent meaning they should only pass on your details for purposes that you would reasonably expect. I would expect a old owner to pass on details if the new owner took over their business, I would not expect the old owner (never mind a collection agency) to pass them on to a completely new business.

What I would reasonably expect (if the service provider had a privacy notice like you posted) is to receive a letter from the new gym asking if i would like to transfer my membership to them.

I'm sorry to ask you to clarify this again but does the contract state is between name (your name) hereafter referred to as client/member/whatever and gyms name hereafter referred to as service provider? The reason I'm asking is because of the privacy notice. IMO it should have came from the person you had the contract with.....not a third party.

It is very important that the contract is not with the debt company.

tirednemotional

Thats what would make sense to me: the service provider, provides the service. The collecting agent, collects the payments/subscriptions etc & therefore, each has clearly defined roles.

Again, that makes sense to me: if the new owner was buying the business from the old owner then, as you say, there'd generally be some letters or other correspondence giving some information about whats going on & the new services etc, etc.

No problem! I'm 100% positive that the contract is with the service provider (gym). Here's what is states at the top of the contract:

"Customer Agreement

Definitions: The Service Provider = "We"; The Customer ="You"; Debit Finance Collections Plc = "DFC"

Management and Member Responsibilities
We the Service Provider shall provide and manage the services and you undertake to comply with the rules of the Service Provider and with any amendments which may reasonably be introduced in the future."

Overleaf, in a box, it shows: "Service Provider Name: ******" (gym).
In a box under that, it shows: "Collecting Agent: Debit Finance Collections Plc, (address...)".

WhiteHorse

tirednemotional wrote: »

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).

Was the previous company dissolved?

Judith_W

As others have said, I would recommend raising a dispute about whether this debt is owing. They would have to provide a valid credit agreement which they would not be able to do as you have never signed an agreement with the new company.

If you want templates etc ask on the Debt Free Wannabe section, they are really good at that sort of thing

tirednemotional

@whitehorse: I think so. The name of:******(old gym) was shut down and the owner declared himself bankrupt. I'm sorry for being dense here, but what constitutes "dissolved"?

I spoke to the new gym owners this morning and they informed me that although they haven't bought the business from the old owner, they've "insured the debt" (acted as guarantors). This, I assume, changes the whole scenario. They also said that they "cant speak to Debit Finance (with regards to cancelling my membership) because they wont talk to them about it - because the contract was taken out with the old gym and only the old owner can speak to Debit Finance regarding that".

@judith_w: I have spoken to Debit Finance today who wouldn't confirm over the phone what has actually happened but asked me to send them an email with my query and that I will get a reply within 7 days....

Thanks for the heads-up regarding the templtes - I'll head there now.

DVardysShadow

tirednemotional wrote: »

... Thanks for the heads-up regarding the templtes - I'll head there now.

I don't advise templates on this matter. We have a rather complex contract dispute where you yourself do not understand your own contract nor the relationships between the old gym, the new gym and Debit Finance. And you have not managed to make the situation clear to us here.

Only use a template if you know for a fact that it really addresses the problem. Otherwise, it is a waste of effort at best and at worst can leave you even more exposed.

tirednemotional

@dvardysshadow: Ok, I'll leave the template for now until I can get a clearer picture of what's actually going on. It'll be interesting to see what Debit Finance come back with and perhaps then I can clarify the details here.

Thanks for your time and effort.

WhiteHorse

tirednemotional wrote:

The name of:******(old gym) was shut down and the owner declared himself bankrupt. I'm sorry for being dense here, but what constitutes "dissolved"?

In law, a company is considered to be a person. It is created ("incorporated"), and can be destroyed ("dissolved"). Once it is dissolved, it is dead.

That's why the distinction between the company being dissolved and merely taken over is important.

To find out the current situation, go to the Companies House website and feed in the name or company number.

unholyangel

WhiteHorse wrote: »

In law, a company is considered to be a person. It is created ("incorporated"), and can be destroyed ("dissolved"). Once it is dissolved, it is dead.

That's why the distinction between the company being dissolved and merely taken over is important.

To find out the current situation, go to the Companies House website and feed in the name or company number.

Not all companies will be listed with companies house though unless they are a limited company.

Hintza

WhiteHorse wrote: »

That's why the distinction between the company being dissolved and merely taken over is important.

I woud have thought this is the crux of the matter. If it was dissolved any agreements would die with the company. If taken
over then nothing has really changed.