HELP! Virgin Active have instructed a debt recovery agency for a cancelled contract

DistortedVision

I have a problem which is causing me some distress and hoping some of you may be able to give some advice.

In 2005 I joined Virgin Active in Leeds. My membership and contract with Virgin Active Leeds was cancelled in 2005 just a few days after joining because I had a change in personal circumstances which meant I had to move from Leeds resulting from the unexpected and sudden bereavement of a close member of my family.

I wrote to the manager of Virgin Active Leeds and spoke on the phone to her several times. She personally organised the cancellation of the membership and this was confirmed in writing by Virgin Active Limited. The letter stated clearly and unequivocally that I had released from the contract, that it had been made null and void. I had no further financial obligations to Virgin Active from that point in time.

I received a letter dated two weeks ago dated 15 May from Virgin Active stating that there was money owing for unpaid membership fees and the case had been passed on to Receivables Ltd – a debt recovery agency. This letter is the first correspondence of any nature I have received from Virgin Active since my contract was cancelled in 2005, demand for payment or otherwise. They state that they had made written several letters and made several attempts to contact me. However, the address was sent to x Gxxxx Lane and I live at x Grove Road. They had been sending all the correspondence to that address which is a property in a neighouring road.

I used the correct address on the the application form when I joined Virgin Active. All my mail is redirected by Royal Mail and I visit my address in Leeds at least once a month and there is no correspondence received there from Virgin Active at all. It was only by chance that I received their letter dated 15 May.

Unfortunately I do not still have the letter which they sent to me confirming the cancellation of my membership. It was disposed of with several old files of correspondence at the end of last year. Since I had received no further correspondence from Virgin Active for 18 months, I considered it to be the end of the matter. There was absolutely no reason for me to retain it.

I wrote to both the manager at Virgin Active Leeds and to Receivables with all this information. I left telephone messages for the manager who has not responded to any of my communication. An employee from Receivables Ltd called me early this morning on my parents’ home telephone number. I intentionally did not give this number on any communication to Virgin Active or Receivables Ltd. My father recovering from a bi-lateral hip replacement – a major operation and so I deliberately did not make that number available so he would not be disturbed. Furthermore, the number is ex-directory. The representative of Receivables Ltd was very rude and aggressive in her manner. She was uninterested in anything I had to say on the matter and kept forcefully insisting that I had to pay this debt. She said that there were no records of any letters sent by Virgin Active, the manager of Virgin Active had never spoken to me ever before, there was no record of the letter I sent to them when the contract was cancelled. The representative at Receivables Ltd said she would send me a copy of the contract and would keep calling me until the so-called debt was repaid. I repeated what I had already stated in my letter: that I would not be be meeting any demands for payment which are without any legal or other foundation. I returned back to University in September 2006 full time for my postgraduate studies and am in no position to pay a so-called debt for which I am in no absolutely no means responsible.

As I'm sure you can appreciate I'm upset by the manner in which Virgin Active and its appointed representatives is conducting itself in dealing with this matter given the sensitive nature of the circumstances in which the membership was cancelled. Furthermore the manner in which the Debt Recovery Agency is conducting itself is causing me some distress. I should explain that I have absolutely no other debts at all, I do not even own a credit card anymore, I have an almost perfect credit history. The only "debt" I have is my mortgage which I have not missed a single payment for in the 4 years of its life.

Would any of you be kind enough in advising me how to deal with the Debt Recovery Agency? I was going to write to Receivables Ltd and state that my position remains unchanged and that I continue to dispute the debt and shall not be meeting any demands for payment. Also not to contact me my telephone on my parents' home phone number or otherwise and that such contact will be considered harassment. Can I say that if I do receive any calls from them that they will be immediately terminated and the times and dates recorded? Also that I'm aware of the Section 40 of the Administration of Justice Act and the Office of Fair Trading Code of Guidance. Can I say that if they continue to call me that I will report them to my local trading standards office? Can I also make a formal complain to the Office of Fair Trading itself if they persist to call me.

Many thanks for your help.

BAILIFFCHASER

Send them a cca request as following :


your address






their address


Client ref
Your reference :
Client reference :

Dear sir/madam

With reference to the above account, I am writing to confirm I am not acknowledging this debt.would you please send me a true copy of this credit agreement. I understand that under the Consumer Credit Act 1974 (Sections 77−79), I am entitled to receive a copy of my credit agreement on request and this should be supplied within 12 working days. I enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.
Please note that under Section 189 you are obliged to supply these documents whether you are the original creditor or not. I await your reply.



your name

learning_to_drive

Sounds like a bit of a nightmare scenario, get on to your local paper for a bit of publicity too, contact the CAB and send the letter, sounds like you did everything you needed to.

DistortedVision

Thanks a lot guys I'm going to send them a CCA request today.

DistortedVision

Many thanks for all the help. I received a reply from the UK
Insolvency Helpline and they suggested that I contact BBC Watchdog and
pointed me to the following link:

http://www.bbc.co.uk/consumer/tv_and_radio/watchdog/reports/health_and_beauty/health_20070321.shtml

I did so and was pleasant surprised to receive a call from a
researcher this morning saying that they were interested in my case! I
then called Virgin Active's head office and found out the name of the
managing director - it's Peter Brennan. I sent him a letter sent by
Recorded Delivery marked Strictly Private & Confidential explaining
the whole case and that BBC Watchdog have expressed an interest in
investigating my case so I'm hoping he will take personal
responsibility.


Anyway I've written to Receivables Ltd with a SARN etc. I've sent all
correspondence by Recorded Delivery. I've always done this for years
anyway for any letters that were even vaguely important.


I'll keep you all posted.


Many thanks!

DistortedVision

I had a development today. I received a letter in my reply to Peter Brennan - the managing director of Virgin Active. Its funny how they ignore all my communications but when my letter has the two words "BBC Watchdog" in it they send me a reply on the day they received it.

Anyway a copy of their letter can be downloaded here:

http://www.patre.com/temp/Virgin%20Active%20(30%20May%202007).pdf

Many thanks for all the help and support all of you have given. Believe me I would be completely lost without it!

Best wishes.

hypno06

good luck and I hope you reach a successful conclusion. At least they are dealing with it now.

DK1bunny

I cancelled a Virign Active month by month membership using the web form on their website at the beginning of the year.

They've now got a debt agency on to me and state that they never had a cancellation option on their website.

I feel like I've been plunged into the twilight zone, does anyone have anything that relates to the cancellation over the website so that I can prove that it actually existed.

Any help would be really appreciated.

DistortedVision

DK1bunny,

How long ago did you cancel it? How much are they claiming the debt is? Is the Debt Recovery Agency, Receivables Ltd by any chance? You can try using www.archive.org for the Virgin Active website on or around the date you cancelled the contract to prove that such a facility is available. This may work.

I also suggest that you write to the DRA stating:

1. You do not wish to be contacted by telephone and any communication should be made by written correspondence only.

2. If they have already been aggressive or called at an anti-social order you should cite Section 40 of the Administration of Justice Act 1970. Also advise them that any inappropriate written contact will be harassment under Section 1 of the Malicious Coummincations Act 1988. Tell them that if you do receive any further phone calls from them they shall be immediately terminated and you shall make formal complaints to you local Trading Standards Office and the Office of Fair Trading for breaches of the OFT Debt Collection Guidance.

3. State that you do not acknowledge the debt and request a true copy of the credit agreement with Virgin Active. Under the Consumer Credit Act 1974 (Sections 77-79). You are entitled to a copy of this within 12 working days. Enclose a cheque for £1.00 which represents the fee payable under the CCA.

4. Request an itemised statement of the amount of the claim and grounds for assuming the contract was still in operation despite the gym membership not being used after the date of cancellation.

5. Issue a Subject Access Rights Notice (SARN) under the Data Protection Act 1998. State that you are unable to establish if and what they charge for this but that you will forward the amount due when they notify you of it.

6. Consider contacting BBC Watchdog. I was pleasantly surprised that they were interested in my case.

7. Write to either Peter Brennan the Managing Director of Virgin Active or Natasha Jolly the Member Feedback Officer.

I have not heard anything back from either Virgin Active or Receivables Ltd since my last letters. Remember that Debt Recovery Agencies make their money by making people pay by using fear and intimidation. They rarely have the evidence to support their claims. On the otherhand if you get a letter from a solicitor take it seriously. If the matter does go to court you need to show that you are a honest and reasonable person above everything else.

If you would like me to send you copies of my letters please PM me with your email address. You'll need to modify them for your particular case.

Good luck and keep us posted!

Best wishes.

Luke

Virgin Active used to be Esporta and I recall Esporta were on Watchdog for the exact same thing earlier in the year.

Wannabesaver_4

i think i recall Holmes Place being on BBC Watchdog earlier this year for excatly the same thing, so its not surprising considering Virgin took them over. Probably why watchdog were so interested!

Good Luck