New company takes Direct Debits for gym membership without my knowledge.

taxi13

I was a member of the local council gym and had been paying the council’s gym contractor by direct debit, which ceased when the facility closed down during covid. I am 75 and did not want to continue my membership anyway. A year later, the council chose a new contractor to operate their sports facilities. I discovered two years on, that the new contractor was given my bank details and had been charging me. I didn't received any correspondence, membership card, or anything! They say they sent me an email and that I had opened it more than once. However, I thought this email was just an advertisement (I get so many) but now I've actually scrolled down and it says my membership was about to re-commence and that I ‘didn’t have to do anything’. Of course, I didn’t see this, which is why it took an embarrassing two years before my daughter alerted me to these payments.

The company have advised me that I am indemnified by my bank and that I need to go to them to get my money back. But apparently, I can only get the last six months back. The company says thats unfortunate, as their facilities were available to me over that two year period! I have been told that this contractor has nothing to do with the previous contractor. They didn’t take them over, or take on their assets and liabilities. It's a completely new company. Where do I stand? 

elsien

Hindsight is a wonderful thing, but moving forwards where you stand is checking your bank statements more regularly to see what is going out. 

On what basis did they say the bank was indemnifying you? Have you contacted your bank, because you say apparently you can only get six months back but you don’t say where this information has come from. 

I’m not sure, given that you had the information, that you do have any comeback on this. 

Ayr_Rage

I agree with @elsien, I cannot see how the Direct Debit Guarantee can apply here, you were advised that the subscription was to recommence in an email with clear information you missed, therefore funds have not been debited erroneously.

Unless there are other factors in play, how did both of you miss the outgoing payments for two years?

Hoenir

taxi13 said:

 Of course, I didn’t see this, which is why it took an embarrassing two years before my daughter alerted me to these payments.

If your daughter hadn't of looked at your bank statements. Then the money could be have taken for a lot lot longer........

taxi13

I knew I was going to get berated here for being so lax. In fact, my daughter previously believed these DDs to be legitimate payments, which is why they went on longer. But it's happened. Can I do anything about it?
How can a completly different company to the one I authorised, start charging me? I've been told they would have needed to take over the previous business to be able to do this.
And, is it legitimate for a company I've never heard of, to send me an advetorial email, which has to be opened and scrolled down to discover that they have my bank account details and, whats more, they're going to start debiting me? They say I opened the email (more than once), as if, somehow, that was their authorisation.
A subsequent email had a picture of a button and it told me to press the button to rejoin and stay in shape. Needless to say, I didn't press the button, but they started charging me anyway!
The bank told me they only indemnify for six months. But, I will go back to them to question this 'short time period' Perhaps they told me wrong. I'll post their answer tomorrow.

GrumpyDil

The bank indemnity is presumably the limit on how far back they can normally refund the DDs.

The note about being sent an email saying press this button to rejoin possibly adds a new dimension as that suggests needing a positive action on your behalf as opposed to needing to opt out but without seeing the full emails it's not possible to really comment.

And if this is definitely a new company I'd be asking questions around the rules for transferring DD instructions between companies where a company takes over an existing business as that may be a route worth exploring.

Emmia

The thing is, whilst COVID etc. was obviously a factor, you'd decided to cancel but I can't see that you actually (actively) told the council/gym provider that you were cancelling

My reading of your post is that you seemed to assume that your membership had been cancelled because of the closure, but I can't see that COVID would be a reason this would happen, without any positive action on your part. Your membership was instead paused., and reinstated once the restrictions were lifted and the gym reopened. My gym membership operated on a similar basis.

Also, who is your contract for the membership with? Is it with the company operating the gym, or is it actually with the council that owns the gym? If it's with the council then I can see a rationale for why your details were provided to the new operator.

dunstonh

How can a completly different company to the one I authorised, start charging me? I've been told they would have needed to take over the previous business to be able to do this.

When the council brings in different contractors, it doesn't change anything. It will be a continuation.

And, is it legitimate for a company I've never heard of, to send me an advetorial email, which has to be opened and scrolled down to discover that they have my bank account details and, whats more, they're going to start debiting me? 

Yes they are as you are a customer with them and it was a service email.

 They say I opened the email (more than once), as if, somehow, that was their authorisation.

They didn't need your authorisation to continue but its good evidence that you read it.  Although it has flaws.  For example, if the email opens in a preview pane, that will be recorded as being viewed even  if you didn't scroll down and read it.

And if this is definitely a new company I'd be asking questions around the rules for transferring DD instructions between companies where a company takes over an existing business as that may be a route worth exploring.

If its a new owner or new contractor operating it on behalf of the council then both are a continuation

mr_stripey

taxi13 said:

I knew I was going to get berated here for being so lax. In fact, my daughter previously believed these DDs to be legitimate payments, which is why they went on longer. But it's happened. Can I do anything about it?
How can a completly different company to the one I authorised, start charging me? I've been told they would have needed to take over the previous business to be able to do this.
And, is it legitimate for a company I've never heard of, to send me an advetorial email, which has to be opened and scrolled down to discover that they have my bank account details and, whats more, they're going to start debiting me? They say I opened the email (more than once), as if, somehow, that was their authorisation.
A subsequent email had a picture of a button and it told me to press the button to rejoin and stay in shape. Needless to say, I didn't press the button, but they started charging me anyway!
The bank told me they only indemnify for six months. But, I will go back to them to question this 'short time period' Perhaps they told me wrong. I'll post their answer tomorrow.

I don't think people are berating you as such. It's a very common mistake which I and many others have made in the past. It is incredibly frustrating to think we've paid for something which we didn't want so I totally get that.

But the fact is that it is your mistake. The gym seem to be digging in on their position by sending you down a blind alley to claim it back via the bank.

As others have said, I don't think the Direct Debit guarentee is going to help here; you are relying on the goodwill of the gym  - and it seems clear they are not going to budge much, if at all.

Hoenir

taxi13 said:

I knew I was going to get berated here for being so lax. 

You are not being berated. When I make a mistake I accept personal responsbility. We live in a world of blame culture these days where somebody else pays the bill seems to be the mantra. Which then creates a huge amount of unproductive work. The first thing that was instilled in me in the first week of work. Was that time (in business) costs money. 

taxi13

Those who said the bank won't indemnify me are correct. The bank said my claim "does not meet the criteria for the direct debit indemnity scheme and advised me to "speak" to the company direct.
To avoid confusion here:
The council gym is run by an outside contractor. They take the money, not the council.
My previous DD was with the previous contractor whose contract was terminated during covid.
The council's new contractor has told me that my bank information was passed onto them by the previous contractor.
So, my question is simple. As a completly new business, what right have they, to start debiting my bank account. As I said previously, surely they would have to take on the assets and liabilities of the previous contractor before they could start dipping into the previous contractor's customer accounts..