CRS Gold Gym Membership

[Dimples01]

I have been tryign to resolve a case between Golds Gym and CRS. Basically my dad signed a contract which was free for 14 days. Afetr teh 14th day he did not return, but under the contract he was liable to pay. He went to go and see the manager after he realised this and the manager said not to worry as he knew about it. Since then the manager left. We received a letter last year askign for £483 which I disputed as it is way more than one month. My dad did not have a contract but we asked for a copy. Six months later we got a copy and over it the fee has been increased in writing. There is not initial or signature agreeing this change and my dad said he did not agree that value. I wrote to them last year sayign that thsi case was acusing my dad and mum so much stress they were willign to settle at 350.00. I told them - in writing - that they had 14 days to accept thsi offer otherwise we will assume they have accepted our argument and written off the debt. I have an email showing tehy read this message. Since then we heard nothing until thsi week (6 months later) sayign tehy will take court action unless we pay! Am i right in saying that they have to now accept that they shoudl have replied sooner?

 

D

[dx100uk]

pers, i would totally ignore it and pay nothing.

there is no way it will ever go to court.

just another threat-o-gram.

you dad owes nothing.

 

if you feel you must do something to allay your parents fears, write to them and say your solicitor wants documented evidence of attendance records as proof from them that your father attended the establishment after the 14days. give them 14 days to reply, stating that if they fail to adhere to this deadline, you will consider the matter closed & that any further communication after that date will be regarded as harrassment.

 

dx

[Agent Mulder]

I have been tryign to resolve a case between Golds Gym and CRS. Basically my dad signed a contract which was free for 14 days. Afetr teh 14th day he did not return, but under the contract he was liable to pay. He went to go and see the manager after he realised this and the manager said not to worry as he knew about it. Since then the manager left. We received a letter last year askign for £483 which I disputed as it is way more than one month. My dad did not have a contract but we asked for a copy. Six months later we got a copy and over it the fee has been increased in writing. There is not initial or signature agreeing this change and my dad said he did not agree that value. I wrote to them last year sayign that thsi case was acusing my dad and mum so much stress they were willign to settle at 350.00. I told them - in writing - that they had 14 days to accept thsi offer otherwise we will assume they have accepted our argument and written off the debt. I have an email showing tehy read this message. Since then we heard nothing until thsi week (6 months later) sayign tehy will take court action unless we pay! Am i right in saying that they have to now accept that they shoudl have replied sooner?

 

D

 

The problem here is the initial contract which is likely legally binding on the face of it. I suspect that your father was free to cancel the contract after the initial 14 days but if he did not, then it would come into force. Whether your father attended the gym or not is irrelevent unless the contract specified that it would become null and void in the event that a member did not attend after the 14 day period and I seriously doubt that any business would include those terms.

 

As for the fee increase, I doubt that is enforeceable as it alters the terms of the original contract. There may be some language in it stating that fees may be raised from time-to-time but I don't think a judge would allow this to stand. I think the Unfair Contract Terms Act covers this.

 

The curious thing about your case is why Golds did not set up a direct debit account with your father. It is standard procedure in many health clubs to do this although a person has the option of paying up front.

 

Please take a look at the contract and let me know what it says about cancellation and the increasing of fees and post on here. Perhaps I can offer you a bit more help but I will need more specific details.

[cerberusalert]

Some of these 'establishments' actually enter you into a loan agreement where you become a member for a year but you are really paying a 'loan' off in installments and the 'free 14 days' is in fact the cooling off period (right to cancel). As Agent Mulder has said, take a close look at that contract.

[Dimples01]

They never set up a Direct Debit as my dad had already stated that he did not want to become a full member and so it was agreed with the manager (that has left) that he would not have to pay.

 

The contract states that one months written notice is to be given. I do not dispute this as I know my dad has been stung by this. My argument is teh fact that they ar easkign for £179 a month and not £70 a month as they claim additional members were added on. This is not so and teh value of £179 was not agreed. They are therfore asking for £483. I have offered them £140 but they have refused.

 

Considering this has started since 2007 and we have responded back and forth and then they go quiet and resurect it every six months!

 

Thsi was what I stated in my last letter to them

 

 

"I am in receipt of your letters dated 25th June 2008 and 9th July 2008.

It amazes me that you have taken over 5 months to respond and yet we have been given only 15 days! However, as I am getting married in 4 weeks I have not had time to look at any post, so I do apologise for my delay in replying!

I am still not happy with your letter and believe the contract to be amended after signature as there are no initials agreeing the amendment to the contract, unless you are able to prove otherwise? As far as I am concerned the contract was for Mr & Mrs Vithlani which should be, according to Golds Gym, £70 per month.

To end this matter I propose to pay the amount of £140.00 only. I refuse to any of your costs as Golds Gym have never been in touch with us direct informing us that they were passing it to an agency, and costs would be incurred. Therefore you must claim this from Golds Gym.

If you are happy to accept this offer please respond within 14 days of the date of this letter as I will soon be away and will not be able to respond to any correspondence until September. If we do not here from you in the next 14 days we assume this to have been dropped and we will not be pursued for this debt any longer, as we cannot keep this going on for much longer!

My parents are unable to afford this but I will pay this on their behalf."

 

 

This letter was dated 13/07/08!

 

Should I stick to my guns?

 

D

[Agent Mulder]

Dimple, yes, you should stick to your guns. The verbal agreement with the manager might not have much effect as the written contract that controls. If other "members" were added, then there would have to be some written evidence of this and the gym will need to show proof. A written contract cannot be amended verbally so I think you're on solid ground. At most, the gym is entitled to the value of the original contract.

 

I take it that the gym has not responded to your letter, except to acknowledge its receipt by email. However, they are not bound to accept your offer and their silence cannot be construed as acceptance.

 

I think you might have weakened your position by offering them money. You should have written to the gym immediately after the meeting with the manager and confirmed the nature of the agreement.

 

You mention that the account has been passed to a DCA. Which one?

[Dimples01]

CRS Collection Services is the DCA, an dteh only response I got recently was by them now accepting the £140. I still however believe that they missed out an dshould have responded sooner

[dx100uk]

still say pay them nothing!

you're being too accomodating.

 

dx

[Agent Mulder]

still say pay them nothing!

you're being too accomodating.

 

dx

 

Might be tricky. An offer has been made, the debt has been acknowledged and the creditor, through its agent has accepted, their consideration being the acceptance of the reduced amount to settle the debt.

 

It is true that the 14 days given by Dimple was ignored and, arguably, the offer was off the table after that point but it's not a great argument.

 

As I understand it, the monthly fee was £70, ergo, the full value of the contract was £840. The settlement, as it stands, constitutes a saving of £600, assuming that Golds would prevail and recover the full amount they contracted for. If Dimple chooses to resolve this on the terms he has agreed to, it's not a bad bargain although it will leave a nasty taste in the mouth. His father relied upon the oral assurance of the manager that the contract was cancelled but, absent a writing to this effect, it won't hold up. If you go ahead with this Dimple, make sure you put, in writing, that the money you are paying is in full and final settlement of the debt.

Sorry that I can't be more positive.

Edited February 2, 2009 by Agent Mulder

[Dimples01]

Thanks very much for your help, I think I might settle at £140.00 and at least we know we will not hear any more about it.

 

Thanks again!

 

D