gym membership.

cameron1981

Hi all, my girlfriend and I joined a gym with a year's contract. I registered it in my name but it was signed up using her bank account. Now she has got in more trouble so is just going to let herself go default, because the gym is in my name but still get bank account will this affect my credit score?

[Deleted User]

It will appear on your credit file, not hers, if they report to CRAs.

GingerBob_3

Deleted_User wrote: »

It will appear on your credit file, not hers, if they report to CRAs.

Why should a gym report your account to a CRA? I see no (good) reason for doing so. Gym membership is not credit.

Tixy

Most of the large chains do report to the credit reference agencies in much the same way as other service contract providers.

GingerBob_3

Tixy wrote: »

Most of the large chains do report to the credit reference agencies in much the same way as other service contract providers.

On what basis? They are not credit providers.

Tixy

Because they are financial commitments and because it is possible to get in to debt with them.

These contracts usually have a fixed minimum term, and if the customer breaks the contract and does not make the payments due then the service provider wants to inform others that the customer has not kept up to date with their financial commitments.

GingerBob_3

Tixy wrote: »

Because they are financial commitments and because it is possible to get in to debt with them.

These contracts usually have a fixed minimum term, and if the customer breaks the contract and does not make the payments due then the service provider wants to inform others that the customer has not kept up to date with their financial commitments.

I just checked David Lloyd T&Cs. No mention of CRAs or credit checking, but they do mention debt collectors. If gyms do report you to the CRAs then it's just another example of how the CRAs are out of control and need reining in.

GingerBob_3

Some interesting stuff here:

http://www.channel4.com/news/gym-membership-terms-to-change-after-oft-investigation

Quote: "By July 2009 the company [Ashbourne Management Services] had registered nearly 17,000 defaults [on gym membership subscriptions] with credit reference agencies". The operative word here is "default".

Just goes to show, the CRAs will take data from anyone. Quality control? Not on your Nellie!

cameron1981

Why would it appear on my credit report when it was registered with her bank? Its one of those "excersise for less" chains

[Deleted User]

Because you're the one who signed the contract. The payment mechanism is irrelevant.

DCFC79

Just change the bank details to your account until the end of the contract and ask to leave.