Gym Membership

[bjgravel]

What is the name of your state (only U.S. law)? IA

I just prepaid (1 year) my Gym membership in July (7/1) talking to the owner of the gym franchise in my town. He had told me that if I pre-pay that I can take advantage of a pay for 12 months get 6 free promotion.
Then on 7/10, I get an email informing me that the franchise is being sold. Hoping it would get sold - I said nothing assuming that I'd just continue my membership

This week a sign was posted on the door saying the gym is closing for good at the end of the week. Its one of those key-card gyms so you can get in 24/7 and now the past owner hasn't been at the gym in weeks.

Do I have a right to a refund of 8 months?

I paid by credit card 12 months 7/1 ($320.40) used the gym July, August, Sept, & Oct. I should get 8 months credit right? $26.70 x 8 = $213.60
I have a credit card statement but no contract. Just a verbal agreement to pay for the 12 months up front.

Thanks!

 

[LdiJ]

What is the name of your state (only U.S. law)? IA

I just prepaid (1 year) my Gym membership in July (7/1) talking to the owner of the gym franchise in my town. He had told me that if I pre-pay that I can take advantage of a pay for 12 months get 6 free promotion.
Then on 7/10, I get an email informing me that the franchise is being sold. Hoping it would get sold - I said nothing assuming that I'd just continue my membership

This week a sign was posted on the door saying the gym is closing for good at the end of the week. Its one of those key-card gyms so you can get in 24/7 and now the past owner hasn't been at the gym in weeks.

Do I have a right to a refund of 8 months?

I paid by credit card 12 months 7/1 ($320.40) used the gym July, August, Sept, & Oct. I should get 8 months credit right? $26.70 x 8 = $213.60
I have a credit card statement but no contract. Just a verbal agreement to pay for the 12 months up front.

Thanks!

If they have closed, its likely due to financial reasons. It appears that they were unable to sell. Going through your credit card company to attempt to get your money back might be an option, but if their bank account is empty, that may not be possible either.

 

[bjgravel]

If they have closed, its likely due to financial reasons. It appears that they were unable to sell. Going through your credit card company to attempt to get your money back might be an option, but if their bank account is empty, that may not be possible either.

Thank You - I hadn't thought of contacting my credit card company for help. I have only emailed both corporate and the franchise owner here in town asking how they expect to resolve the issue.
I've also thought about taking the issue to their social media pages to let them know how disappointed I am. It's not the money... just the fact that I feel I was stolen from being that he asked me to renew my contract 7/1 for a full year, likely knowing that he may not be there for that next year.

Thanks again!

 

[Zigner]

If they have closed, its likely due to financial reasons. It appears that they were unable to sell. Going through your credit card company to attempt to get your money back might be an option, but if their bank account is empty, that may not be possible either.

I doubt it - OP is well past the 60 days for disputing a transaction.

 

[justalayman]

Was the entire amount billed at once to your credit card or were there monthly charges? If monthly, be alert for any additional charges making sure you dispute thrm.

 

[bjgravel]

Was the entire amount billed at once to your credit card or were there monthly charges? If monthly, be alert for any additional charges making sure you dispute thrm.

It was a one time charge on the 1st of July - but I will certainly watch for future charges too... They do have my CC info obviously.

 

[justalayman]

It was a one time charge on the 1st of July - but I will certainly watch for future charges too... They do have my CC info obviously.

From how you had described the situstion I didn't think it was s monthly billing but just wanted to toss that out there in case it was. Obviously always be aware of the charged on your credit card but I wouldn't expect anymore charges for this.

 

[quincy]

... I've also thought about taking the issue to their social media pages to let them know how disappointed I am. It's not the money... just the fact that I feel I was stolen from being that he asked me to renew my contract 7/1 for a full year, likely knowing that he may not be there for that next year. ...

I advise against "taking the issue to their social media pages," especially if you intend to claim money was "stolen."

For one thing, writing a negative complaint can cut off all positive communications between you and the company and, for another thing, you open yourself up to claims of defamation. It is hard to express negative comments about a company without adding some exaggeration or embellishment to support the comments.

Right now, you appear to have a legitimate complaint and you could have the money you advanced the gym refunded. I recommend you do not complicate matters by making derogatory/defamatory statements. There could be time for, and better reason for, negative reviews later.

 

[bjgravel]

I advise against "taking the issue to their social media pages," especially if you intend to claim money was "stolen."

For one thing, writing a negative complaint can cut off all positive communications between you and the company and, for another thing, you open yourself up to claims of defamation. It is hard to express negative comments about a company without adding some exaggeration or embellishment to support the comments.

Right now, you appear to have a legitimate complaint and you could have the money you advanced the gym refunded. I recommend you do not complicate matters by making derogatory/defamatory statements. There could be time for, and better reason for, negative reviews later.

Thank you for the information! I really appreciate it.
For the time being - I will continue to try to reach them by phone and email to see how they intend to resolve. Thanks!

 

[cbg]

Another point to consider - while it is *likely* that he knew on July 1 that he would not necessarily be there the entire year, it is not *certain*. I have personally been involved in a situation where, from the date the business was notified that they were losing funding till the date of essential closure, it was less than a week.

There are two possibilities. One, the sale fell through. Two, the sale went through and the decision to close was made by the new owners.

So any statements or public comments should keep that in mind.

 

[bjgravel]

Another point to consider - while it is *likely* that he knew on July 1 that he would not necessarily be there the entire year, it is not *certain*. I have personally been involved in a situation where, from the date the business was notified that they were losing funding till the date of essential closure, it was less than a week.

There are two possibilities. One, the sale fell through. Two, the sale went through and the decision to close was made by the new owners.

So any statements or public comments should keep that in mind.

So, at this point, do what I can to maintain contact in hopes they refund me. (I've emailed them twice so far and no response from either)
Should I contact my CC about possible help? Or should I wait on that?

 

[cbg]

It might be a bit late to contact your credit card company but it's certainly worth a shot. I wasn't attempting to dissuade you from any attempts at a refund - just to be careful about any public or social media statements you may make unless you KNOW, not just assume, what transpired at the other end.

 

[justalayman]

I would contact the credit card company. They may not be able to help at all but it doesn't hurt to ask.

Do not use the terms

Fraud
Stole
Illegal

Or anythkng that suggests their actions were illicit. At this point you really don't know and have no proof it was.

 

[quincy]

So, at this point, do what I can to maintain contact in hopes they refund me. (I've emailed them twice so far and no response from either)
Should I contact my CC about possible help? Or should I wait on that?

It is generally better (more effective) to send certified (return receipt requested) letters when corresponding with companies, and to follow up the letters with phone calls, citing the letters sent. Persistence can be key to getting results. In other words, don't let the company ignore you.

If it becomes necessary later, you can have an attorney send a letter, demanding the refund of money owing on your cancelled gym membership.

Contacting your credit card company to see if there is a way to dispute the charge can't hurt but, as Zigner noted, it is probably too late for the credit card company to do anything.

Good luck, bjgravel.