Cancelled gym membership (no canc. fee) - yet they want two more direct debits??

L[Deactivated] on 17/01/2014 - 21:36

Sloppy subject title, sorry, but in short:

  • I cancelled my gym membership today
  • been with them for years, thus no cancellation fee (contract expired)
  • they direct debit $44 per fortnight from my bank account
  • they tell me it will take TWO more direct debits from my account before my membership is actually cancelled.

Has anyone else experienced something like this before when cancelling memberships? If they can sign you up and commence the DDs immediately, why on earth does it take a month's notice to stop the DDs??

Seems absurd to me. What would you do? Argue it or cut your losses and get over it?

Cancellation fees would amount to approx. $200 if it was during the contracted 12 months… so they're basically wanting $88 off me without reason. I find it hard to believe they need so much notice to stop deductions (my next debit is due in 8 days).

What's the deal?

General Discussion

Comments

  • Commonwealth Pig on 17/01/2014 - 21:48
    +2

    That seems ridiculous. I'd call the bank and block any further direct debits from them.

    Edit: Unless there was a 1 months notice of cancellation clause in the original agreement.

    • [Deactivated] on 17/01/2014 - 22:10

      This is why I need you guys! haha. Cheers man.

      I'll have a look through my paperwork and see if that's mentioned anywhere. Thanks!

      • [Deactivated] on 18/01/2014 - 13:14

        Assuming they don't have some contract clause held over you… I had a similar situation with an ISP. My bank said to do this:

        1. Write a dated letter (not an email), and mail it so receiver has to sign for it. In it cancel your membership, stating the details: name, address, etc. that you're not under contract, whatever… and state that… "I therefore withdraw permission for x gym to make any further debits from my account."

        2. Take a copy of that (signed and dated) letter to the bank and have them BLOCK all further debits from the gym.

        One bank told me they can't block it. So if they say this, immediately open a new account and close the old one. Still send and show the bank the letter though, in case the gym decides to get nasty, or, the bank decides to hit you with an overdrawn fee of some kind.

        You shouldn't be paying for two months in advance unless you signed away that right.

  • [Deactivated] on 17/01/2014 - 22:21
    +1

    Another point to consider. Did they have you cancel it in writing in any way?

    Most direct debit agreements have to be cancelled in writing (another thing to check when you're looking at your contract) so a follow up email or letter confirming the immediate cancellation of your direct debit authority on your account, dated today, may be a good idea.

    Otherwise you may find they don't actually cancel it and you have to follow up etc. Just yet another dirty tactic I've seen before.

    • [Deactivated] on 17/01/2014 - 22:55

      They had a one page form for me to sign, with a space for me to write my reason for cancelling, and for my email address. I haven't received any emails from them yet (it was only done today).

      Cheers for the heads up, though. Knowing me, I would've just deleted any email from them without even opening it lol.

  • MITM on 17/01/2014 - 22:48
    -1

    Withdraw/transfer all of your money out of the account prior to the DD day, then put it back in and carry on as usual.
    They'll send a letter saying they'll retry in X days etc. "Rinse & Repeat"
    Or they may send a letter saying if there are insufficient funds next time -THEY MAY CANCEL YOUR MEMBERSHIP - Bazinga

    • [Deactivated] on 17/01/2014 - 22:57
      +1

      Nah that won't work. My bank will just DD the amount then charge me an overdrawing fee on top :P Nice idea though.. but also too much hassle even if it did work lol.

  • [Deactivated] on 17/01/2014 - 23:00

    Just called my bank to have any future DDs blocked from this gym. Cheers a a a.

    We'll see how this goes… I'll update if the gym starts chasing me up (which I'm very much expecting). Worth a shot though.

    Still interested to hear other people's experiences with cancelling gym memberships… is this standard practice etc?

    • c64 on 18/01/2014 - 08:39

      you should also notify the gym in writing that you withdraw their authority for them to debit your account.

  • Cheshire Cat on 17/01/2014 - 23:04
    +1

    It's a pretty common clause in gym memberships in my experience. I have had one where it wasn't in my contract (but was my gf's) and they still tried to stick us both. Were limiting the number of weeks we could be away on holiday (where you still made half payments) when the contract didn't say there was a limit etc……gyms, like most regular payments tend to sit on the dodgy side of business behavior in my experience.

    Just keep billing them and hope they don't notice :p

  • eatwell365 on 17/01/2014 - 23:08

    If it is me, I will take no assumption so to ask staff the exact reason for the 2 fortnightly direct debit. is it because of the inclusion of termination clauses in contract stating a minimum one month notice in writing. The gym I visit is friendly. Membership can be suspensed when away. Injury or sickness is good reason for immediate cancellation without penalty. My last solution will be to close the account that is set for dd. You scenerio can be different and I believe you will make the right judgement call. Good Luck.

  • Glittergirl on 18/01/2014 - 01:45

    This happened to me when I cancelled my Fitness first membership. They said I had to give a months notice, so took two more fortnightly payments.

  • timetoquit on 18/01/2014 - 02:41

    They tried this on me many years ago (about 10 years ago, admittedly I paid for a year membership and used the gym 5 times) anyways, my response was to the lady at the desk was - I'm cancelling my cards and you can't charge me for a service that I am no longer using.

  • WaywardOne on 18/01/2014 - 04:35

    My gym has exactly this clause and it irritates me somewhat. The problem is if it was stated in the original contract (which you agreed to) there is not much you can do? Or can you?

  • c64 on 18/01/2014 - 08:37

    your first step should be to see what the terms & conditions say in regard to membership cancellation. there might be a minimum period of notification required in your contract, in which case you should observe that.

    • [Deactivated] on 18/01/2014 - 18:09

      Yeah, I can't double check that because I can't find my copy of the contract. Quite annoying.

      Looks like we'll just have to play the waiting game now…

    • c64 on 18/01/2014 - 21:05

      the problem is they still have your authority to debit your bank account and if you bounce the payments the gym might try to sting you with a dishonour fee (again there might be something about this mentioned in the contract).

  • hctan on 18/01/2014 - 15:29

    Which gym is this?

    • [Deactivated] on 18/01/2014 - 18:12

      Fernwood (women's only gym) :P

      Not sure about the opening hours of their other locations but my one was rubbish… closed most of Sunday, short hours on Saturday, early closing time on weeknights (creating a rush of people after work, and it wasn't a huge gym). Sucked big time… I'd much rather change to a 24 hour gym in the future.

      I really preferred the no-men policy though lol.

      • spacecowboy on 18/01/2014 - 20:42
        +1

        You should still get full access to the gym for the next 2 fortnights you are paying for. I had the same experience recently. I had to pay for another months gym fees from my cancellation date, but could use the gym as normal during this period. So my advice is use the gym for as much as you can, up to the very last day you have paid for. They should have explained this to you when you gave notice of cancelling?

  • watty on 18/01/2014 - 19:12
    +2

    Just to lighten up the mood, the answer is at the end ;)
    http://www.youtube.com/watch?v=oh8PFs0LTKc

  • lusicul on 19/01/2014 - 23:33

    I was a member of Fernwood last year on a month to month basis and when I signed the contract it did say they will deduct 2 more payments from date of cancellation. Pretty sure it's the standard practice at Fernwood. Goodlife also have the same policy.

  • pookie on 19/01/2014 - 23:36
    +1

    First be sure to cancel in writing…as someone said above.

    then

    Make a call to fair trading.. ask them about provisions under the new australian consumer laws regarding unfair contract terms in standard form contracts ;)

    Just because there maybe a notification period in the contract or membership agreement..if there is..doesnt make it always enforceable.

    under the new acl they may not be allowed to take further payment from you and give you nothing in return. However the law weighs up the facts like so:

    Under s24 of the Australian Consumer Law. For a contract term to be unfair it must meet the following criteria. ..

    Q. Does the term cause a significant imbalance between your rights and obligations and those of the business?

    A. No it does not. You could have chosen to object to the terms and conditions on sign up.

    Q. Is the term reasonably necessary to protect the legitimate interests of the business?

    A. Businesses need to budget for expences such as staff and rent etc….Sudden cancellations from members may affect them dramatically and with prescribed notice they can predict their cashflow better and adequately plan for it.

    Q. How transparent is the term?

    A. If its readable, not hidden, and clear than its good enough.

    these are most likely the arguments the gym will put forward..so it may not seem really fair but it is probably legal..

    But dft and accc dont like gyms so give them a call anyway..nothing to loose :)

    A gym tried this on my girlfriend lol idiots….a nice letter from me got the result we wanted.

    Enjoy :)

    Pookie

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