I got ripped off by a gym! (1 Viewer)

[Moe Maishlish]

Todd,
I did not provide the gym with a voided cheque. I wrote a cheque for 4 months worth of membership fees ($99), and that's it.
Someone correct me if I'm wrong, but a cheque for $99 can only be used to obtain $99 from my account, right? Is it not illegal to use the account information written on a $99 cheque to access the account afterwards for more funds(which is what I suspect may have happened)?
The point is, I do not recall signing anything authorizing the gym to access my account. The contract was amended for a period of 4 months, a cheque was written for that amount, and that's it.
Let's not forget that I also cancelled my membership in writing. It just so happens that the gym can not produce the cancellation, nor their copy of the original contract. If they take money from me, are they not responsible for also proving that I am a member of their gym under contractual agreement?
It's also somewhat amusing (although still very frustrating) that they are still trying to withdraw money from my account, despite my recent dealings with them and "Mr Y"'s recent "cancellation" of my membership... :rolleyes
Moe.
P.S. Thanks to everyone for your input! I started this thread to solicit opinions and advice, and then to weigh my options in dealing with this situation. Your comments, suggestions (and yes, even criticisms) have all been well recieved, and will no doubt prove to be invaluable in my forumulation of how to ultimately deal with this situation.

 

[Leila Dougan]

Moe, wow, what a crummy situation you're in :frowning: You seem a bit more calm than I'd be, I think.
Of course most of us posting here aren't lawyers and those that are cannot give legal advice anyway, so this is all speculation.
I think, for sure, the gym is wrong. They cannot use your $99 check to access your account later on. They are only entitled to the $99, that's it. I'm not so sure about things from the bank's perspective. My credit union has told me similar things about 60 days, etc. I don't think that its necessarily the bank's fault for not checking to see if the charges were validated. In any case, though, the gym should have some sort of proof that you let them debit your account. For instance, I pay many of my bills online using my checking account and while I did not sign a physical piece of paper, I DID enter security information to access the site (all of which would reasonable prove I am who I say I am). In addition, I'm sure the time/date was recorded so that the information could be provided as proof of authorization. In your case, Moe, the gym cannot furnish ANYTHING related to either your 4 month limited contract OR your cancellation.
You definetely need to contact a lawyer. I know you wish it would be easier, but in reality I think that not only should you get all your money back (plus interest!) but that other people should get the opportunity to see what this shady business is up to. As another poster mentioned, they have a building, they have equipment, you can easily get a lien against it if they do not pay. In the end I'm not sure you'd get anything from the bank (or that you necessarily should) but you definitely need to get your money back from the gym.

 

[Todd Hochard]

The point is, I do not recall signing anything authorizing the gym to access my account. The contract was amended for a period of 4 months, a cheque was written for that amount, and that's it.

Provided that's the way it was six years ago, then, no they shouldn't have gained access to your account. But, if there was something to the effect of "continuing payments via..." Blah, blah, blah, then they can use that one check. After all, it has the routing# and account# right on it.
The short of it- if they can produce a contract that you signed for a limited membership, but with some "continuing" member verbage crap, then you may be screwed. Of course, whether they really have it or not, they don't have your cancellation. If they can't produce any contract, and you can produce paperwork for 72 deductions without a contract, then you should get your money. That's my decidedly amateur take on it.
Believe it or not, I'm on your side.
Todd

 

[John Garcia]

There was a story on this recently, locally. Unfortunately, you may not have read your contract clearly enough... While it could have been an honest mistake, one national Fitness center in particular ADMITS that the contract you sign is not, in fact a contract to be a customer, but a LOAN. They are "financing" your membership (there may even be a % rate!), and you are permitting them access to your account. They are perfectly within their legal rights to charge you for as many months you agreed to, but that does not mean they obtained your signature in good faith. What they are saying when they sign you up for 12 months of gym access, what they are really signing you up for is legally paying them for 12 months, whether you come or not AND you cannot technically cancel it, because it is a loan. Be aware, and READ YOUR CONTRACT CAREFULLY, as this is not limited to one institution.

The reason you don't remember signing anything is because they were not up front in telling you what the REAL deal is.

 

[DaveF]

They are "financing" your membership

This is getting off the original topic, but that's what Balley's does. If you don't pay the membership fee in total at sign-up, then it is financed at some rate (ca. 13% as of two years ago).

Regardless, Moe got screwed by gym X/Y.

But I will definitely keep all this in mind as I am looking for a fitness center to join.

 

[Nathan*W]

Having worked in banking for several years, I can tell you that your bank is only bound by the "Deposit and Disclosure Agreement" pamphlet they gave you when you opened the account. It's the one with the little writing and big words that most people never bother to read and some even throw away. In it you will find what your bank will and will not do for you concerning when deposits post and fraud protection, etc.

I wouldn't be surprised if you were limited on the amount of money you can get from the banks, but I do know that they have an obligation of more than the 2 months they claimed they'd credit you for!

Unfortunately not true. Banks put that verbiage in the agreement pamphlet to protect themselves in this very kind of situation. Look at it from their perspective: A well-known fitness company that does a good business informs the bank that a fitness member has agreed to an auto-debit from their account. Is it true? Maybe/maybe not, but the bank knows that said fitness company routinely has this kind of transaction with its fitness members. There are no red flags because they legitimately do it so often. The bottom line is in court, the bank will pull out that little pamphlet and say they have limited liability and the judge will say they are responsible for what is stated in the disclosure agreement, and nothing more. By suing, you may garner some "go away" money, but the bank would probably not admit any wrongdoing.
As you so aptly said in your thread topic, you got ripped off by a gym! "x" and "y" are the dishonest ones. Go get 'em!

 

[Brad_V]

I would think a lawyer would like to get his hands on this case if for nothing else than the media publicity he would get out of it. I'd call some up and see what they say.