Virgin Active Gym Membership Debt Recovery

JLAB93

Hi all,

Looking for some advice or shared experiences.

I joined Virgin Active earlier this year and paid for three months of membership via direct debit. I never actually used the gym during that time. After the third payment, I called to cancel my membership, and cancelled the direct debit manually, and now I’ve received a letter from a debt collection agency, arc europe, chasing me for unpaid fees.

I was under the impression that my membership was cancelled when I called as I no longer had access to login to the mobile app, but it seems Virgin Active continued attempting to charge me. I’ve had no communication from Virgin Active since then, just this sudden debt collection notice.

Has anyone dealt with something similar? Is there a way to dispute this or get Virgin Active to take it back from the debt collectors? I don’t think it’s fair to be chased for fees after not using their facilities despite paying for 3 months, which they can tell by the card entry system.

I would also like to add that I never physically signed into a contract as I brought my membership online. They asked me to go to my local gym with ID and to sign the contract which I never did as I have never used the facilities

Any help or advice would be massively appreciated!

Exodi

JLAB93 said:
paid for three months of membership via direct debit. I never actually used the gym during that time.

A tale as old as time unfortunately, and inevitably a big component of a gyms strategy.

Unfortunately whether you used the gym or not is irrelevant, they (presumably) made sure the service was always available for you to use, if you had chosen to.

JLAB93 said:
 After the third payment, I called to cancel my membership, and cancelled the direct debit manually, and now I’ve received a letter from a debt collection agency, arc europe, chasing me for unpaid fees.

Well firstly, do you know the exact nature of your membership. It's not uncommon for memberships to be paid monthly (for example) but to have a minimum term of 12 months. Could that be what's happened here?

I've never used Virgin Active, but looking at Bromley (as an example), I can see they also provide memberships with 12 month terms despite being billed monthly. Kudos to them, as they make this very clear.

https://www.virginactive.co.uk/clubs/bromley/memberships

How much are they chasing you for? One unpaid month + fees, or 9 unpaid months + fees?

Back to your response - what did they say when you called them to cancel? Why would you immediately cancel the direct debit as well - this is asking for trouble... you could have dipped into the next billing period for example.

JLAB93 said:
I was under the impression that my membership was cancelled when I called as I no longer had access to login to the mobile app, but it seems Virgin Active continued attempting to charge me. I’ve had no communication from Virgin Active since then, just this sudden debt collection notice.

It would be helpful to understand what they are trying to charge for. Also do you have any confirmation you cancelled from them (e.g. an email)?

JLAB93 said:
Has anyone dealt with something similar? Is there a way to dispute this or get Virgin Active to take it back from the debt collectors? I don’t think it’s fair to be chased for fees after not using their facilities despite paying for 3 months, which they can tell by the card entry system.

If you have proof you cancelled (and they are chasing periods after the cancellation, assuming no minimum contract term - e.g. they did not action the cancellation properly) then you would have a strong case for them to call off the debt collectors.

If you prematurely cancelled the DD removing their ability to take a payment that you were contractually obliged to make despite your cancellation, then you will struggle. If you cancelled the DD after 3 months despite having a 12 month commitment, then you will struggle.

One thing I will say - do not bother wasting your breath mentioning about not using the facilities. We see a decent amount of this scenario, alongside pointing out the service wasn't used and I can tell you that it is 100% irrelevant. I don't get a refund on my Netflix because I didn't stream anything last month, I don't get a refund on my breakdown cover if I don't breakdown, etc. The service was available for you to use, they have fulfilled their end of the deal, the fact you didn't use the gym is your decision and irrelevant to the provision of the service. Honestly, after seeing this justification countless times, I beg you don't bother mentioning it, as much as you may be tempted or think it will achieve anything.

JLAB93 said:I would also like to add that I never physically signed into a contract as I brought my membership online. They asked me to go to my local gym with ID and to sign the contract which I never did as I have never used the facilities

This might be irrelevant (very few contracts are given wet signatures nowadays, completing your details online is a perfectly valid way to enter into a contract).

Were the T&C's available to you (either sent to you by email or available online)?

born_again

Do they have a 30 day notice of cancelation?

sourcrates

The process for debt collection of outstanding gym membership fee`s is pretty much standard across the board.

Its important to understand the legalities of this process as ARC won`t have purchased this debt, (unless the letter says different, if so say so) the Gym will likely have assigned the debt to them simply to collect the outstanding arrears, they won`t own the debt, so cannot take action to make you pay it, they can only ask you to pay, nothing more.

So ARC will go through their range of standard letters with you, this may take a few months, if you don`t engage with them, they will simply return the debt to their client as uncollected, and that will likely be the last you hear of it.

Mark_d

JLAB93 said:

Hi all,

Looking for some advice or shared experiences.

I joined Virgin Active earlier this year and paid for three months of membership via direct debit. I never actually used the gym during that time. After the third payment, I called to cancel my membership, and cancelled the direct debit manually, and now I’ve received a letter from a debt collection agency, arc europe, chasing me for unpaid fees.

I was under the impression that my membership was cancelled when I called as I no longer had access to login to the mobile app, but it seems Virgin Active continued attempting to charge me. I’ve had no communication from Virgin Active since then, just this sudden debt collection notice.

Has anyone dealt with something similar? Is there a way to dispute this or get Virgin Active to take it back from the debt collectors? I don’t think it’s fair to be chased for fees after not using their facilities despite paying for 3 months, which they can tell by the card entry system.

I would also like to add that I never physically signed into a contract as I brought my membership online. They asked me to go to my local gym with ID and to sign the contract which I never did as I have never used the facilities

Any help or advice would be massively appreciated!

I had almost the exact same thing with David Lloyd.  I had agreed cancellation with a staff member and I canceled my direct debit...but it ended up being sent to arc europe.

You had a contract with Virgin Active and didn't give the required notice period.  Until you cancel in the correct way, and get this confirmed in writing by Virgin Active then your debt will continue to accrue. As unfair as it feels, legally you have no reasonable prospects of getting away without paying the amount arc europe is chasing you for.  I know this because I did consult my solicitor when I was in your position.