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"Lady of America" Gym 3 Year Contract

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O

omihut

Guest
What is the name of your state? Texas

Hello everyone!

My wife went to a "Lady of America" gym club one day for some excercise. She was presented with a "standard form" to fill and was told that is a month-to-month membership contract for 3 years. However, the keyword in there is "non-cancelable". We only discovered that much later, after months of trying to making them stop charging our credit card for a service that she doesn't need anymore. What options do we have? The full contract is about $1500, of which we only paid a few months. There is no doubth that they have a contract in hand with my wife's signature on it. And for sure she didn't read it twice before signing it. We'll gladly pay a lawyer to fight these guys than giving them some free and undeserved money. I'd also want to somehow save few souls from making the same mistake, but I don't know how. There are plenty of similar complaints posted on the web, but any legal advice/reference would be greatly appreciated. I'd also want to mention thah the contract contained driver's license number, but no SSN.

Thanks in advance,

Angela & Ovi
 


stephenk

Senior Member
most gym contracts do provide certain conditions to allow the contract to be cancelled, ie. you move away, you are disabled, etc.

consult with an attorney regarding the wording and text size on the "non-cancelable" provisions of the contract. if those portions were just boilerplate type on the back of the contract or in some other unnoticeable area of the contract, that may be enough to get out of the contract.

But, just because your wife or you no longer want to use the gym is not going to be enough to get out of the contract.
 

JETX

Senior Member
Simply, your wife is on the hook for this contract.

Most states recognize that 'health club' contracts are often high-pressure sales and allow a 72-hour cancellation period. Clearly, that time has expired in this case. Therefore, unless there is some other provision in the contract that would provide an 'out' (see below), she is stuck with it. These contracts are usually well written and are pretty much solid.

"What options do we have?"
*** Really, none. The gym has no reason to negotiate for an 'early' cancellation since they will collect in full.
The only thing you could do would be to pay that credit card account off (balance transfer to another) and then close the account. That would stop the immediate credit card charges, but they would still likely come after you for the debt.

"I'd also want to mention thah the contract contained driver's license number, but no SSN."
*** That has no bearing on the validity of the contract.

Most states do provide some relief from health club contracts. In your case, the applicable Texas statute for cancellation conditions and requirements for a 'health spa' are in the Occupations Code at the following:
http://www.capitol.state.tx.us/statutes/oc/oc0070200.html#oc031.702.301

I would suggest you read the above statute and see if you can any other valid justification for cancellation. If not, she is stuck for the duration of the contract.
 
O

omihut

Guest
stephenk and JETX,

I'd like to thank you for your quick replies. Like JETX suggested, we canceled the credit card just to stop the automatic payments for now, but a collection agency is already haunting us. Indeed, in the contract there are 2 exit clauses: medical reasons (thanks God, it doesn't apply to us) and moving to a place that doesn't have a gym within 25 miles. We in fact moved shortly after signing the contract and the closest gym club from there is 16 miles, which falls short of satisfying the exit clause. Question for you: where is that "25" figure coming from? In the Occupational Code I can only find a reference to the GYM moving within 10 miles but no MEMBER moving.

And one last question if I may. What is the worst case scenario here? Just bad credit? Or long court appearances, conviction, public service, blah, blah, blah? Should we put all of our assets in a family trust asap?

Thank you for your time and valuable advice!
 

JETX

Senior Member
"where is that "25" figure coming from? In the Occupational Code I can only find a reference to the GYM moving within 10 miles but no MEMBER moving."
*** One of the reasons for the consumer laws as to health spa's was the abuse by opening a facility and selling long-term memberships, only to close that facility and move elsewhere and start selling again. The law was made to protect consumers from those abuses. That is why it only applies to the spa that moves, and not the consumer. The legislature figured that you could factor the spa 'inconvenience' in your move.

"What is the worst case scenario here? Just bad credit? Or long court appearances, conviction, public service, blah, blah, blah? Should we put all of our assets in a family trust asap?"
*** The worst that could happen would be phone calls demanding payment and the credit report 'hit'. The calls could last up to 4 years (the SOL for breach of a written contract in Texas) and the credit hit for up to seven years.
At anytime during the four year period, the debt owner could file a lawsuit against you and get a judgment. If that happens, the Texas judgment could last forever.... (10 years renewable).
There is no chance of 'conviction' or 'public service' as those are criminal punishments and your breach would be a civil matter.

"Thank you for your time and valuable advice!"
*** Of course, you're welcome!!
 

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