Gym Membership Scam

gibby

Hi

just to warn others.
Joined a gym a few days ago, got asked to fill out a "direct debit form" and when I got home I found it was infact a credit agreement, that can not be cancelled and if the gym goes out of biz I still have to pay the montly installments.
If you miss a payment, change banks or payment dates they charge a fortune

doing some checking it turns out alot of gyms use the same system to get their money upfront from a credit firm - who also make money from the deal
the gym admitted it was the only way they could legally get a 12 month commitment
from customers

you do have the right to sue the gym if it goes bust, but who could you sue???

What I think is really iffy is that the credit agreement was not mentioned as being one. Does anyone know if this is illegal ????

I immediately contacted the gym who are pleading with me to keep the membership & avoiding my requests to cancel the membership.
they claim no other customers have problems with the contract and that its standard practice

thanks

G

maninthestreet

'Standard practice' - what standard are they referring to?
The fact that no one else may have complained (and this may not be the case) is irrelevant - you are complaining.
If this is a credit agreement, you have the right to cancel within 7 days of signing it. The credit firm should write to you to confirm the agreement, and give you the option to cancel the agreement if you so wish.

chuckley

what was the direct debit form for??

and why did u fill it in if u wernt going to pay for anything?

maninthestreet

chuckley wrote: »

what was the direct debit form for??

and why did u fill it in if u wernt going to pay for anything?

If my understanding is correct, there was no DD form, it was a credit agreement (though this may have included a DD mandate).
The OP appears to have been tricked into signing up for a credit agreement that has terms that would probable be considered unfair by a court e.g has to keep paying even of the gym goes out of business.

chuckley

maninthestreet wrote: »

If my understanding is correct, there was no DD form, it was a credit agreement (though this may have included a DD mandate).
The OP appears to have been tricked into signing up for a credit agreement that has terms that would probable be considered unfair by a court e.g has to keep paying even of the gym goes out of business.

Last i checked filling out a d/d form means you are giving your bank permission to pay xyz? so if op was told it was a D/D form when it was really a credit agreement, then it still stands that OP was lookin to pay for xyz...

gibby

chuckley wrote: »

what was the direct debit form for??

and why did u fill it in if u wernt going to pay for anything?

I was going to pay for it
I also paid a £50 joining fee by card and happy to pay my membership montlhy

what I object to is being conned into sigining a credit agreement when told it was a DD

G

chuckley

how were u conned then? u said u wanted membership and u wanted to pay xyz, so whats the porblem with u signing the credit agreement form?

gibby

I wanted to take the membership & pay by DD but they sneakily got me to sign a credit agreement without telling me thats what it is

this means a credit firm pays the gym upfront, ties me into a 12 month contract which was not mentioned at all

but, if the gym goes bust I still have to pay the credit firm regardless

legally the gym should have said, this is a credit agreement!
I dont see why I need credit to pay a gym membership.
I looked at 3 others and they dont use this system. Simply pay monthly & cancel if you want to leave, move, etc

I hope that makes it clearer

G

PBA

gibby wrote: »

I looked at 3 others and they dont use this system.

Are you sure?? The only gyms I've seen (apart from our local council leisure centre) want at least a 12 month contract. Are you checking what they want you to sign?

chuckley

gibby wrote: »

I wanted to take the membership & pay by DD but they sneakily got me to sign a credit agreement without telling me thats what it is

this means a credit firm pays the gym upfront, ties me into a 12 month contract which was not mentioned at all

but, if the gym goes bust I still have to pay the credit firm regardless

legally the gym should have said, this is a credit agreement!
I dont see why I need credit to pay a gym membership.
I looked at 3 others and they dont use this system. Simply pay monthly & cancel if you want to leave, move, etc

I hope that makes it clearer

G

no gibby ,the problem is u and ur lack of knowledge to gym membership and how it works. they always carry a min membership of at least 12 months.. unless other duration specified, just like internet packages, e.t.c

if u wanted to pay as u go, then why were u sitting there telling them u wanted to pay by D/D?? filling out a d/d form means u WANT to pay them at their said duration and amount.

after 12 months then u can roll onto a month by month basis, unless otherwise stated. if u found others that dont follow that practice (highly unlikely) then why didnt u go with them?!

Bamber19

Chuckley, I'm not sure you've understood the OP's gripe, or else it's me who hasn't. The problem is not with the duration or beign tied into said contract but with discussin a Direct debit agreement with the gym but instead being "tricked" into signing up for a credit agreement with a 3rd party. One of the problems this results in is that if you have a DD agreement or simply a bill every month then should the gym go bust after 3 monhts you stop paying for the service which you are now not receiving. However, with this credit agreement should the gym go bust after 3 months you are still tied into a credit agreement with the 3rd party.

Both plans have the same A and B but the route from A to B is vastly different and being told you're going one way but asked to sign another is misleading.