Can unpaid gym membership show up on credit file?

dervyx

Hi

I moved places and signed up for a new minimum 12 month gym membership in early February.

Long story short, it worst the worst gym I've ever attended, hot water rarely working in the showers, closed areas due to classes, sauna/steam room very often out of order, rude staff,.. Complained several times and didn't get very far.

After 3 months I decided to cancel my direct debit. Apparently the contract that I've signed said a £55 fee is payable in case I decide to cancel membership before 12 months is up. Called them up and asked if they could waive the fee as I rarely used the gym due to dissatisfaction with the service they provided. They pretty much said I need to pay up.

So yesterday I've received final notice letter stating if I don't clear the balance within 7 days, "it will be reported to credit reference agencies which could make it harder to obtain credit in the future."

Is that true? I've never heard of gyms providing information to CRA.

[Deleted User]

Some do.

Gyms tend not to give up easily on bad debt.

Thrugelmir

dervyx wrote: »

Apparently the contract that I've signed said a £55 fee is payable in case I decide to cancel membership before 12 months is up.

Always worth reading something prior to signing. A salutory lesson learnt.

[Deleted User]

What they probably mean is that they will pass the account to a debt collection agency who might (but almost certainly will not) take court action which could eventually appear on your credit file. In reality you will get debt letters, phone calls and text messages from the debt collection agency for a few months but they will eventually leave you alone if you ignore them.

PaulW922

Depending on the contract you signed, the gym may put a default marker on your credit file - it does not have to be a credit card or loan for that to happen. It is up to you, but you might want to consider paying the fee 'without prejudice' and then pursuing them for a refund on the basis that they did not provide the service you paid for. Or you may think you are just throwing away £55...

Whatever you do, it is a good lesson in why just cancelling a direct debit and walking away is rarely a good idea.

shortcrust

[Deleted User] wrote:

What they probably mean is that they will pass the account to a debt collection agency who might (but almost certainly will not) take court action which could eventually appear on your credit file. In reality you will get debt letters, phone calls and text messages from the debt collection agency for a few months but they will eventually leave you alone if you ignore them.

It depends whether the OP signed a credit agreement. If so then they can report non-payment and or default to the agencies.

I've no idea - do people sign credit agreement for the gym?!

Edit: Just to be clear, signing a contract is not the same as signing a credit agreement.

boliston

Most gyms require payment monthly in advance so no "credit" involved - they would need to go to court and get a ccj and even then you would have time to pay the ccj before it goes on your file.