should I pay gym fees or let it go to collections?

rxis · #1 (**permalink**) 03-06-2008, 01:56 AM

I canceled my $80 a month gym membership after my 6 month period through the owner but I received a late notice recently from his billing company. I was renewed for a 1 year term automatically instead of 6 months as I was told, so by contract I have an additional 6 more months of membership. The letter that I received from Affiliated Acceptance Corporation, the billing company, stated that I will be charged a $10 late fee per month for every late payment due.

Apparently, the gym owner often lies about the contract that his members sign. I've learned the mistake of not reading all the fine print and I will never be so easily fooled again even if I think it is from someone trustworthy.

I'm working on paying down my debt so I really do not want to continue paying, especially since I can't make it to that gym often. I'm considering allowing the payments to go to collections, risk getting sued, and letting it hurt my credit score. I don't plan on using new credit in the next few years as I am trying to pay down all my debt.

What do you think?

Robert · #2 (**permalink**) 03-06-2008, 07:42 PM

Well........You asked.. I think you should pay it. Regards, Robert

brian · #3 (**permalink**) 03-08-2008, 06:06 AM

I think allowing it to escalate is the worst option. Not really good planning IMO.

As for the debt itself - if you were given the impression it was a 6 month renewal rather than a 1 year renewal, have you any protections? If you feel you were lied to, have you tried taking active consumer action on sites such as the BBB and ripoffreport?

BillCollector · #4 (**permalink**) 03-10-2008, 12:11 AM

pay it and just chalk it up as 'lesson learned'. Collections agencies can carry things a bit too far and it can get out of hand quickly.

rxis · #5 (**permalink**) 03-10-2008, 01:33 AM

I tried to clear my mind and go with the flow with what would be the best route. I think I was about to allow me ego to fight it. I don't like being despondent when I remind myself of making the payment and going to that gym.

Anyhow, I think saying(typing) it aloud to neutral parties helped me sort out my mind as well. Thanks.

GarySpicuzza · #6 (**permalink**) 03-10-2008, 08:53 PM

rxis, in all contracts there is an implied covenant of good faith and fair dealing.

If you legitimately are being charged for something you did not agree to then I would NOT pay the bill.

Collection agencies have zero power to force anyone to pay anything. They can make all the calls and send all the letters they want. Those are meaningless computer generated pieces of paper.

The ONLY entity that has the power of debt enforcement is the legal system by way of a court ordered judgment.

Send a letter (certified mail/return receipt) to the gym evidencing their BREACH OF CONTRACT, advise them you will not be paying another dime and let them know if they feel they have a legally enforceable contract to march themselves down to the court house and file a complaint.

Continuing to pay someone after they have slammed you just gives them empowerment to continue using the same tactics with other customers.

Fight back!

rachael24 · #7 (**permalink**) 03-11-2008, 11:44 AM

I agree that sending a letter if you best bet. Continuing to pay without looking at other options just gives them more power.

szbair · #8 (**permalink**) 03-13-2008, 05:57 PM

regardless of how much the debt cost or how bad you feel like you have been ripped off by the gym owner, the worst thing you can do is let your debt go to collections. Why would you risk it anyways? you're not going to come out on top! That would be the biggest mistake and it would dammage your credit score. What you should do is pay it immediately and ask the credit agency how you can get the late removed from your history. Don't let your emotions interfere with doing what's best for you. Also 80 dollars a month for a gym membership is crazy unless you go to lifetime fitness, not some cracker jack who wants to rip you off.

realworldknowledge · #9 (**permalink**) 03-14-2008, 09:46 AM

Quote:

Originally Posted by szbair

regardless of how much the debt cost or how bad you feel like you have been ripped off by the gym owner, the worst thing you can do is let your debt go to collections. Why would you risk it anyways? you're not going to come out on top! That would be the biggest mistake and it would dammage your credit score. What you should do is pay it immediately and ask the credit agency how you can get the late removed from your history. Don't let your emotions interfere with doing what's best for you. Also 80 dollars a month for a gym membership is crazy unless you go to lifetime fitness, not some cracker jack who wants to rip you off.

Agreed completely. $80/month is alot of money dont get me wrong. But they, unfortunately, have the ability right now to mess with your credit and thats nothing to play around with. I would suggest continue paying this, get all correspondance with this company in writting and take as much action against them as you can, ie consumer awareness companies, Better Business Bureaus, ect.

Talk to a laywer about the case and see what they think. But I would recommend against letting this go to collections. Any judge will understand that you are not paying this company because you feel you have a contractual obligation to do so, you are paying them in your best interest so that you mitigate the potential damage this company could bring against you.

If that is too much, I would chaulk it up as a lesson learned.

rxis · #10 (**permalink**) 03-18-2008, 06:43 PM

$80 is a lot but its the norm but its not a general gym.

Some of the former members are trying to build up a case so they will be letting me know if there is anything that I need to contribute other than my name.

AllThingsPersonalFinance · #11 (**permalink**) 04-10-2008, 05:16 PM

Quote:

Originally Posted by rxis

I canceled my $80 a month gym membership after my 6 month period through the owner but I received a late notice recently from his billing company. I was renewed for a 1 year term automatically instead of 6 months as I was told, so by contract I have an additional 6 more months of membership. The letter that I received from Affiliated Acceptance Corporation, the billing company, stated that I will be charged a $10 late fee per month for every late payment due.

What do you think?

Take your contract to small claims court. Look for something in there that talks about automatic renewals. If you can't find anything, you have a winning case.

Call your local tv consumer reporter too. They love poking a stick in the eye of the health club industry. Bad PR on tv? The owner of the gym will probably buy you a new set of tires to get you to shut up.

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