Gym price rise - Cancellation rights? 10 March at 12:41PM in Consumer rights 14 replies 448 views

mezzor

Good afternoon everyone,

I am currently 7 months into a 12 month agreement with Everybody Gym with a family membership at £69.99pm. They have emailed me today stating that from 1st April the price will rise to £74.99 per month. As small as the increase is, with every other contract I have also being increased, this is just one I simply cannot afford.

I have checked their terms to see whether I am able to cancel the contract and found the below:

12. All Everybody direct debit memberships are agreements in accordance with the Direct Debit Guarantee and are subject to regular price reviews. Any change to memberships will be notified in writing a minimum of 10 days before any intended change.

14. Memberships cannot be cancelled prior to the agreed contract length that you have signed up for and the last payment has been made. A contract may be cancelled once the final payment has been collected, this requires 10 days advance notice in writing to Everybody Health & Leisure to the e-mail address [email protected] A confirmation e-mail will be sent back. Queries on cancelled memberships can only be dealt with when a copy of the confirmation e-mail and ticket number is provided.

Am I right in thinking that based on the above I have to accept the new price rate and have no way of getting out of this contract?

TIA

cymruchris

mezzor said:

Good afternoon everyone,

I am currently 7 months into a 12 month agreement with Everybody Gym with a family membership at £69.99pm. They have emailed me today stating that from 1st April the price will rise to £74.99 per month. As small as the increase is, with every other contract I have also being increased, this is just one I simply cannot afford.

I have checked their terms to see whether I am able to cancel the contract and found the below:

12. All Everybody direct debit memberships are agreements in accordance with the Direct Debit Guarantee and are subject to regular price reviews. Any change to memberships will be notified in writing a minimum of 10 days before any intended change.

14. Memberships cannot be cancelled prior to the agreed contract length that you have signed up for and the last payment has been made. A contract may be cancelled once the final payment has been collected, this requires 10 days advance notice in writing to Everybody Health & Leisure to the e-mail address [email protected] A confirmation e-mail will be sent back. Queries on cancelled memberships can only be dealt with when a copy of the confirmation e-mail and ticket number is provided.

Am I right in thinking that based on the above I have to accept the new price rate and have no way of getting out of this contract?

TIA

Yes - I think you're right.

It covers price rises in 12. and that you have to fulfil your contract in 14.

I don't agree with it personally, I think companies should stand by their monthly charges as per contract for anyone that starts one, and only apply rises to new contracts - as they could technically put the price up to £500 a month once you'd paid your first month - and then you'd be stuck with it until your contract expires.

I know that price rises within contracts on things like broadband and mobile phones are being 'looked at' but not sure if any action will be taken in the short-term, and even then probably won't apply to things like gym memberships.

saajan_12

mezzor said:

Good afternoon everyone,

I am currently 7 months into a 12 month agreement with Everybody Gym with a family membership at £69.99pm. They have emailed me today stating that from 1st April the price will rise to £74.99 per month. As small as the increase is, with every other contract I have also being increased, this is just one I simply cannot afford.

I have checked their terms to see whether I am able to cancel the contract and found the below:

12. All Everybody direct debit memberships are agreements in accordance with the Direct Debit Guarantee and are subject to regular price reviews. Any change to memberships will be notified in writing a minimum of 10 days before any intended change.

14. Memberships cannot be cancelled prior to the agreed contract length that you have signed up for and the last payment has been made. A contract may be cancelled once the final payment has been collected, this requires 10 days advance notice in writing to Everybody Health & Leisure to the e-mail address [email protected] A confirmation e-mail will be sent back. Queries on cancelled memberships can only be dealt with when a copy of the confirmation e-mail and ticket number is provided.

Am I right in thinking that based on the above I have to accept the new price rate and have no way of getting out of this contract?

TIA

Disagree.. If the rent review clause specifically mentioned a £ amount or % or something relative to say RPI that deterministically gives an increase then they could enforce it. What they have is too vague though, meaning there can be no meeting of the minds. Also as an unclear term, you could argue it should be interpreted in favour of the party that didn't draft it, ie you. Also what if they 'reviewed' to £1million per month and you were tied in for 12 months? That would be an unfair term and therefore invalid. 

Overall I think there's a few arguments whereby you either don't get an increase until after yoru tie ie or they let you cancel. I'd write to say that you disagree and what you expect. 

Alderbank

Are the T&Cs you quoted the ones which were in place when you signed up?
If so then you agreed them when you signed up, as @cymruchris explains above.

If the gym has changed any T&Cs since you signed up and you did not confirm your agreement to the changes then they don't apply to you.

HillStreetBlues

saajan_12 said:

Disagree.. If the rent review clause specifically mentioned a £ amount or % or something relative to say RPI that deterministically gives an increase then they could enforce it. What they have is too vague though, meaning there can be no meeting of the minds. Also as an unclear term, you could argue it should be interpreted in favour of the party that didn't draft it, ie you. Also what if they 'reviewed' to £1million per month and you were tied in for 12 months? That would be an unfair term and therefore invalid. 

Overall I think there's a few arguments whereby you either don't get an increase until after yoru tie ie or they let you cancel. I'd write to say that you disagree and what you expect. 

I agree with your disagreement.
It's far to broad not to be unfair,  and you can't agree to an unfair term.

EDIT
Just think what this term could do.
Every week they could  increase the price  as that would cover
"regular price reviews"

mezzor

Alderbank said:

Are the T&Cs you quoted the ones which were in place when you signed up?
If so then you agreed them when you signed up, as @cymruchris explains above.

If the gym has changed any T&Cs since you signed up and you did not confirm your agreement to the changes then they don't apply to you.

Yes these are the original terms, they haven't been changed, just the price point.

cymruchris

HillStreetBlues said:

saajan_12 said:

Disagree.. If the rent review clause specifically mentioned a £ amount or % or something relative to say RPI that deterministically gives an increase then they could enforce it. What they have is too vague though, meaning there can be no meeting of the minds. Also as an unclear term, you could argue it should be interpreted in favour of the party that didn't draft it, ie you. Also what if they 'reviewed' to £1million per month and you were tied in for 12 months? That would be an unfair term and therefore invalid. 

Overall I think there's a few arguments whereby you either don't get an increase until after yoru tie ie or they let you cancel. I'd write to say that you disagree and what you expect. 

I agree with your disagreement.
It's far to broad not to be unfair,  and you can't agree to an unfair term..

Out of interest what would make the term 'fair' - If for example it said RPI plus 3 percent (Something along those lines seems to be banded about by various broadband/mobile companies at the moment). RPI is currently around 13.4 percent I think - so a £69.99 monthly fee going up by a 'fair - because it was stated in the terms and conditions' RPI and 3 percent would come in at around £81.74 a month.

As it stands it's gone up to £74.99 a month - wouldn't that be 'fairer' than using the RPI example above? As it's below the RPI?

I mentioned in my post above I don't agree with the vagueness of it as they could in effect charge £500 a month - but if they've put their price up less than the RPI - wouldn't that make it a fairer increase?

Couldn't they justify that as the price increase was less than RPI it was quite valid?

I imagine the counter-argument might be that RPI wasn't mentioned in the first place, and so it's not relevant - but if the terms and conditions were the same as the other big contract providers and RPI had been mentioned, the OP would in fact be paying even more?

HillStreetBlues

cymruchris said:

Out of interest what would make the term 'fair' - If for example it said RPI plus 3 percent (Something along those lines seems to be banded about by various broadband/mobile companies at the moment). RPI is currently around 13.4 percent I think - so a £69.99 monthly fee going up by a 'fair - because it was stated in the terms and conditions' RPI and 3 percent would come in at around £81.74 a month.

As it stands it's gone up to £74.99 a month - wouldn't that be 'fairer' than using the RPI example above? As it's below the RPI?

I mentioned in my post above I don't agree with the vagueness of it as they could in effect charge £500 a month - but if they've put their price up less than the RPI - wouldn't that make it a fairer increase?

Couldn't they justify that as the price increase was less than RPI it was quite valid?

I imagine the counter-argument might be that RPI wasn't mentioned in the first place, and so it's not relevant - but if the terms and conditions were the same as the other big contract providers and RPI had been mentioned, the OP would in fact be paying even more?

Fair could be will reserve the right to increase prices by up to 10% on April 1st of every year.

But the term they are using would give them the power to rise prices weekly and by whatever amount they choose.
As that term is unfair then any price increase (even a small one)  can't be enforced as the  term for the increase doesn't exist in law.


On the issue of RPI rises a person will know how the  rise is calculated and when it takes effect, although not the amount in cash.
Personally I'm not a fan  of RPI  increases but wouldn't say that they are unfair.

mezzor

HillStreetBlues said:

cymruchris said:

Out of interest what would make the term 'fair' - If for example it said RPI plus 3 percent (Something along those lines seems to be banded about by various broadband/mobile companies at the moment). RPI is currently around 13.4 percent I think - so a £69.99 monthly fee going up by a 'fair - because it was stated in the terms and conditions' RPI and 3 percent would come in at around £81.74 a month.

As it stands it's gone up to £74.99 a month - wouldn't that be 'fairer' than using the RPI example above? As it's below the RPI?

I mentioned in my post above I don't agree with the vagueness of it as they could in effect charge £500 a month - but if they've put their price up less than the RPI - wouldn't that make it a fairer increase?

Couldn't they justify that as the price increase was less than RPI it was quite valid?

I imagine the counter-argument might be that RPI wasn't mentioned in the first place, and so it's not relevant - but if the terms and conditions were the same as the other big contract providers and RPI had been mentioned, the OP would in fact be paying even more?

Fair could be will reserve the right to increase prices by up to 10% on April 1st of every year.

But the term they are using would give them the power to rise prices weekly and by whatever amount they choose.
As that term is unfair then any price increase (even a small one)  can't be enforced as the  term for the increase doesn't exist in law.


On the issue of RPI rises a person will know how the  rise is calculated and when it takes effect, although not the amount in cash.
Personally I'm not a fan  of RPI  increases but wouldn't say that they are unfair.

I have challenged them via email and they seem to be ignoring my challenges towards clause 12 and stating simply that if I wish to cancel I must pay the remainder of the contract now to leave and that after 1st April the cancellation fee will be calculated at the new rate.

If they offer to keep me at £69.99pm - with Clause 12 being deemed "unfair" does this void the whole contract and allow me to leave? If I'm being honest I haven't actually used the gym membership as much as I'd hoped as I took a new job, I've probably used it 4 times since August 2022 which is my own fault I know but if I can use this to my advantage to cancel outright I'd like to.

HillStreetBlues

mezzor said:

I have challenged them via email and they seem to be ignoring my challenges towards clause 12 and stating simply that if I wish to cancel I must pay the remainder of the contract now to leave and that after 1st April the cancellation fee will be calculated at the new rate.

If they offer to keep me at £69.99pm - with Clause 12 being deemed "unfair" does this void the whole contract and allow me to leave? If I'm being honest I haven't actually used the gym membership as much as I'd hoped as I took a new job, I've probably used it 4 times since August 2022 which is my own fault I know.

Usual MSE disclaimer,  advice on these forums  is just advice and shouldn't be taken as full legal advice, as you would need to pay for that.

I can only state what I would do
I would point to that term and state it's clearly unfair, and as such  it it has no legal standing.
So they would have two options,  keep the monthly payments the same or allow me to cancel.
If their choice is no increase  they haven't broken any terms, so can't cancel.
I would make it very clear that I do not agree with any increase

If they don't agree/ reply I would let them take the direct debt out  showing the increase fee,   then I would contact bank to reverse the DD  saying it was more than I agree to.

I would then expect threatening letters about non-payment,  but I would be willing to fight in they chose to take court action.

Ectophile

See the Consumer Rights Act https://www.legislation.gov.uk/ukpga/2015/15/contents/enacted section 2 and schedule 2.

One example of an unfair term in a contract is given as "A term which has the object or effect of giving the trader the discretion to decide the price payable under the contract after the consumer has become bound by it, where no price or method of determining the price is agreed when the consumer becomes bound."

A clause in a contract that allows the trader the right to increase the price by as much as they like, whenever they like is unfair, unless it allows the consumer to cancel the contract.