Gym price rise - Cancellation rights? 10 March at 1:41PM in Consumer rights 14 replies 498 views

the_lunatic_is_in_my_head

mezzor said:

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.

I think the term is void rather than the contract meaning you’d still be tied in for 5 months but at the original price, not 100% on this so happy to be corrected. 

HillStreetBlues

the_lunatic_is_in_my_head said:

I think the term is void rather than the contract meaning you’d still be tied in for 5 months but at the original price, not 100% on this so happy to be corrected. 

I agree as stated

HillStreetBlues said:

If their choice is no increase  they haven't broken any terms, so can't cancel.

pinkshoes

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

If you'd written that it was increasing form £69.99 to £99.99 then it would be considered unreasonable.

The FCA give some examples of what they deem to be unfair contract terms:

https://www.fca.org.uk/firms/unfair-contract-terms/examples-unfair-terms#:~:text=Examples%20of%20potentially%20unfair%20terms,contract%20or%20cancels%20the%20contract

It says:

• charge the consumer a large sum of money or an amount that goes beyond what would be considered a reasonable pre-estimate of loss incurred by the firm, if a consumer doesn’t fulfil their obligations under the contract or cancels the contract.

As the increase is only £5 a month (so a 7% increase), with just 5 months remaining on the contract, then I think you would struggle to argue this is unreasonable, as energy prices have risen a lot since your membership started. My gym has stopped opening on weekend evenings to save money rather than increase prices. 

This is an extra £25 you're talking about, so the cost of 4 bottles of cheap wine or a couple of decent bottles. It sounds a little to me like you're looking for a reason to get out the contract...

HillStreetBlues

pinkshoes said:

If you'd written that it was increasing form £69.99 to £99.99 then it would be considered unreasonable.

The FCA give some examples of what they deem to be unfair contract terms:

https://www.fca.org.uk/firms/unfair-contract-terms/examples-unfair-terms#:~:text=Examples%20of%20potentially%20unfair%20terms,contract%20or%20cancels%20the%20contract

It says:

• charge the consumer a large sum of money or an amount that goes beyond what would be considered a reasonable pre-estimate of loss incurred by the firm, if a consumer doesn’t fulfil their obligations under the contract or cancels the contract.

As the increase is only £5 a month (so a 7% increase), with just 5 months remaining on the contract, then I think you would struggle to argue this is unreasonable, as energy prices have risen a lot since your membership started. My gym has stopped opening on weekend evenings to save money rather than increase prices. 

This is an extra £25 you're talking about, so the cost of 4 bottles of cheap wine or a couple of decent bottles. It sounds a little to me like you're looking for a reason to get out the contract...

The passage you quoted is for a  pre-estimate before the full price is known for the contract.
The OP  wasn't given any type of estimate, just a  set price