Gym membership closed- now debt collector on my case

oliver77

Hello,
I've been reading these forums on and off over the last few years, and now I've signed up to ask for some advice.

A few months ago I cancelled my gf's gym membership as she had moved out of the area (the membership was for her, and the dd was paid by me). I wrote an email to the gym, and cancelled the direct debit.

Two weeks ago, CRS 'phoned my girlfriend claiming an outstanding balance.

I phoned the gym to ask about cancelling direct debits, and they referred me to another company (apparently the gym doesn't deal with the money side of things, they just process the application forms). I phoned that company, and they referred me to CRS. I spoke to a guy at CRS, and he explained that I owed two months direct debit, plus the CRS fees.

I'm confident that my annual membership has been paid in full. I've checked the contract, and I've paid ten months direct debit, and the first month and a half was paid at time of joining. This is what CRS are disputing- they think that that's "the membership fee", and that my contract is for 12 direct debits, whereas the contract clearly states that this is not the case.

Now, CRS do come across as a cowboy outfit. First of all, he lied to my girlfriend when he first spoke to her- he said that he was calling from the gym. Before she gave him my address, she asked again to confirm who he was, and he stated that he was from the gym. So he's obtained personal data through fraudulent means. I've spoken to the gym and they've confirmed that there is no membership fee- so he hasn't even got his facts straight.

The gym is being as helpful as they can be, they're happy that I've paid the 12 months, they've confirmed there's no membership fee, and they're trying to get in touch with "head office" to sort it; but they have pointed out that there's not that much they can do as the financial side of things is outsourced. The guy I spoke to at the gym says he didn't see my email cancelling the membership, but I have a copy in my "sent items".

CRS are not hassling me or my gf over the phone, but I've just received a letter claiming £140 odd (with no explanation how this is broken down) to complete the 12 month fee. Again, I do get the impression that they are cowboys as they really are a bit dim- they've included a copy of the contract, saying that it shows I need to make 12 dd payments, but the small print clearly states that when paying by dd "the first payment, or part thereof will be made at the time of joining". I've spoken to the gym membership dude, and he agrees with me. I made the first payment at the time of joining, and the ten dds complete the yearly contract.

I'm writing a letter in reply, and would like some advice. I want to keep it as short and simple as possible, so all I've written is an explanation of how 10 months direct debit plus an initial payment complete the 12 month contract, referrring to the relevant points in the contract (that they obviously haven't read). Should I put anything more in? Should I include that I've spoken to the gym and that they agree with me? Should I complain that he's obtained personal data through fraudulent means?

I'd rather refer only to the wording of the 12 month issue on the contract, and hope that that will nip it in the bud, rather than bring up more points and start a whole argument, if that makes sense?

DS4215

I've had fun with CRS before (for a different type of debt). They are cowboys - incompetant but insistent. It took ages to sort out a payment plan out for a debt (by Standing Order) - it normally took about 2-3 weeks to reply to a letter/email and all the while they'd keep texting/ringing even though I asked them to communicate only in writing/email...

Good luck

oliver77

Looks like we're getting off lightly at the moment then- no calls or texts for the time being...

owen_money

Well when you joined the gym you wanted to lose a few pounds, but maybe not as many as that

Good luck, just keep plugging away And Dont let the b******ds grind you down

oliver77

I have drafted a reply to CRS, I would be grateful for your opinions. Am I coming on too strong accusing them of fraud?

FYI, the letter from CRS contained a copy of the gym contract, which CRS claim shows I owe 12 direct debits, and which I refer to to show that I don't



[My Name]
[My address]

Date

[CRS rep name]
[Harland address]

Ref number

---

Dear Mr

---

,
Thank you for your letter dated

---

regarding your outstanding balance, which I dispute.

You will see that Point 2 of the contract states that direct debit payments for the annual fee are due in advance, and that the first payment or part thereof will be made at the time of joining. i.e, the first payment of the 12 month contract is to be made at the time of joining.

You will also see that Point 4 of the contract states that the membership shall begin on the agreed date of joining. i.e, the 12 month contract starts on the date of joining.

Page one of the contract records that the first payment (of the 12 month contract) was indeed made at the time of joining; to cover the month of joining and a month in advance before the direct debit started. This leaves 10 months to be paid by direct debit, which as you confirm, has been paid in full.

In summary- I have paid for 12 months membership of [name of gym]: 10 months direct debit and the remainder up front at the time of joining, in accordance with the terms of the contract.

I have been in contact with [name of gym], they confirm and are satisfied that I have met my obligation, and have no outstanding balance.



[End of page one, refuting any outstanding balance]


[Page two, levelling my complaints against CRS]


Furthermore, I would like to complain about your conduct in this matter. When you telephoned my partner, you introduced yourself as an employee of [name of gym]. When you asked for my partners new address, she asked you to confirm your identity, and again you stated that you were calling from [name of gym]. You have obtained personal data through deception.

When I spoke to you on the telephone, you stated that my initial payment was a membership fee. It was not. The contract shows that there is no membership fee, and that the initial payment forms part of the annual fee.

You also told me on the telephone that the amount paid up front at time of joining does not count toward the annual fee, and that you expect 12 direct debits on top of the amount paid up front. The contract shows that this is not the case.

In your letter dated

---

, you again state that 12 direct debits are due on top of any amounts paid up front. The contract shows that this is not the case.



You are either in error or you are attempting fraud.



I would appreciate if you could confirm in writing if an error has been made on your part, and apologise for the inconvenience and distress you have caused us.


Sincerely,

[my name]

oliver77

Update- I reworded the letter above, and took out the bit about fraud, thought that was a bit much.

CRS sent a reply the next week, stating again that the initial payment was not part of the annual fee (even though the wording of the contract states that it is).
They also denied lying to my girlfriend, and said that they were acting on behalf of the gym.

So I wrote another letter, quoting the contract and spelling out to them that the intial payment IS part of the annual fee.
I also pointed out that I had been in contact with the gym, and that they said that as our reason for cancellation was a change of address, we could have cancelled at any time.
Regarding CRS acting "on behalf" of the gym, I pointed out that as far as the gym was concerned, I didn't owe them any money.
And to cap it off, I demanded an apology from CRS.

That was three weeks ago, and I haven't heard anything from them since. Fingers crossed that's the end of it.

FireWyrm

Well, thanks for the update.

Couple of things spring to mind here. You have a contract with the Gym, not this CRS outfit. As far as you are concerned, the Gym's private financial arrangements to outsource are none of your concern. As a consumer, you have every right to deal directly with the Gym who, you have stated clearly say that there is no debt to pay. I would go in person to the Gym and speak to the 'manager'. I would then, ask from him, a letter on headed paper which unequivocally states this fact. I would then insist that he copy this letter and send it direct to this CRS outfit.

If this CRS continue to hassle you, I would send the whole lot to Trading Standards who will no-doubt be most interested in the behaviour of this company. I would also threaten CRS directly with harrassment charges if they do not cease and desist their intrusive behaviour.

As a word of warning going forward though, cancelling a DD under consumer law does not automatically cancel the arrangement. It's always wise to cancel the DD from the other way around via the vendor and THEN via your bank.

oliver77

Yep, I put that in my letters too, that my contract was with the gym, not CRS...

ginger_lover

I had much the same issue, and I would be willing to bet its the same chain of gym. They are (in)famous for it. Just search on the web for a thousand stories!