My gym membership is in fact a credit agreement...!

singlemindedly

I think I've been badly stung... does anyone see or know of any way out of this?

Only last week, I signed up for a 12-month gym membership with a small, one-location gym. I signed this agreement under what I think were seriously misleading conditions:

1 - I was told I was signing a membership form, I didn't know it was in fact a credit agreement (should have checked... well hindsight...).

2 - Before signing, I made clear that my working arrangements might change to home working, in which case I would need to cancel the membership - see, I live in Winchester and the gym is located in Reading, where I have been working so far (that's an hour's drive!). I asked whether cancellation in that case would be possible. The salesman assured me that it was because then I'd be out of area.

So now, much sooner than I anticipated - as I was thinking that holidays would mean no decision until the autumn, at least - I got the work-from-home OK. I provided the gym with proof of this and requested cancellation as agreed.

So they then pointed me to Debit Finance Collections plc, refused to cancel my contract and said it was up to the finance company! DFC are refusing to cancel my contract on the basis that I have signed it while already living outside the area, and moving is the only provision for cancelling the contract. My working arrangements make no difference!

I really feel like I've been lied to and yet there seems to be no way out of this, the contract specifically states that it's unrevocable and I've spoken to Citizens Advice and they also said so! Has anyone any bright ideas??

Thanks!
Susanne

smcaul

I could well be wrong, but if it is as you say a credit agreement don't you have a cooling off period? A quick google suggests this may be the case, also, if it s a credit agreement does the salesman have to be registered with the FSA?? I am just clutching at straws really. Personally I would just tell them to take me to court whereby I would call the person who sold it to me as a witness and let a judge sort it out - a verbal contract is just as binding - might be worth telling them you recorded the conversation as a bit of a lie, but hey they are not exactly honest are they!!

dmg24

The statutory cooling off period only applies where the agreement is signed away from the trader's premises.

Did you not read the document when you signed it? x

dmg24

a verbal contract is just as binding

No, it isn't. If there are conflicting statements given, the written statement will override the verbal. As ever, there are exceptions to the rule, but they are few and far between.

Sorry I can't give more positive news.

What exactly does your agreement say? This is the most important factor x

smcaul

dmg24 wrote: »

The statutory cooling off period only applies where the agreement is signed away from the trader's premises.

Did you not read the document when you signed it? x

Really?

Cooling off period

Also known as a cancellation period, under the Consumer Credit Act, 1995, you have the right within 10 days to reconsider a credit agreement (loan or credit card offer) and refuse in writing the agreement on offer without obligation. If you choose to waive this entitlement, the agreement takes effect immediately.

Taken from http://www.home.co.uk/guides/loan_glossary.htm?cool

Not sure what the OP signed, but if it was a loan/finance agreement looks like they may be covered - got to be worth a try at least!

dangeroussports

A verbal contract is not worth the paper its written on.

FACT.

dmg24

Afraid so ...

Citizens Advice

http://www.adviceguide.org.uk/index/life/debt/credit.htm#Cancellingacreditagreement

Regulated credit agreements (see under heading Regulated credit agreements) may allow you to cancel the agreement if you want to change your mind. You have a ‘cooling off period’ in which you can change your mind. You can cancel the agreement if:-

• you signed it anywhere other than on the premises of the trader or creditor; and
• you discussed the credit face-to-face with the trader or creditor before you signed the agreement.

The legislation is designed to protect people against doorstep sellers and the like. When you go to the premises of the trader, then assuming there is no duress, you are deemed to be signing of your own free will, and with knowing all the facts.

Sadly the finance companies will have had people try to quote the CCA endless times, and they will know it better than anyone.

dmg24

To be very specific, it comes under s. 67 of the Consumer Credit Act 1974.

MarkyMarkD

A large proportion of gym memberships actually involve you paying a whole year's membership fees up front, funded by a loan which you agree to take out at the same time.

It's not illegal for them to do this.

It's not illegal for a contract to have a 12 month term with no refund if you cancel early, however reasonable your grounds for cancellation may be.

As dmg24 says, you need to read contracts before you sign them, not rely on what a sales person says to you.

maninthestreet

What is the name of this gym? I think you should name and shame them.

davidjohndean

As others have said - you must READ (even the small detail) before you sign. I'm sure in the future you will! Sorry....