Billed for incorrect amount

[lsinke]

Greetings all,
I had an account with World Gym. I signed a 2 year contract and set up an automatic $25 withdrawal from my checking account monthly. I noticed in January 2000 that the payments had stopped being taken out, and called World Gym. They said they would fix the problem. In February 2000 a payment was withdrawn, and then again in March 2000 the withdrawals ceased. I called World Gym once more and was told they would fix the problem. I heard nothing more from them and no payments were withdrawn. They made no contact whatsoever with me about my account, and I assumed it had been dropped.

Then in August I received a letter from a collection agency saying I owed $345.47 to World Gym. I asked for a payment history and the collection agency said they would try to get it from the client. I also called World Gym and they said they had no records, they had all been turned over to the collection agency. I received no payment history and was informed by the collection agency that I should pay the requested amount or it would go on my credit record. I did go ahead and pay the bill despite the disputed amount, but in a written letter I requested the payment history.

After my payment I still received no payment history. I called the collection agency and finally got someone to send it to me. World Gym had been charging me a $20 returned check fee every month. My credit union does not have any record of any refused drafts on my account.

It seems to me that World Gym is charging me an extra $140 for their own errors; besides that I don't understand why they never even notified me by any means (mail or phone call) that there was a problem with the automatic payment.

Is there anything I can do?

Thanks in advance for any advice.

Lisa in Colorado Springs, CO

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

First, never mention names of people or companies. A legal no-no.

Second, when you paid, did you write on the payment you disputed the amount? Do you have anything in writing in conjunction with this check stipulating you disputed it? If you didn't, not a whole lot you can do.

As to these automatic payments.....why don't you get all the back bank statements showing this off on payment practice, show your original contract stipulating automatic withdrawal from your bank and show (via a signed notarized letter by bank) the lack of refused checks (hence the $20 charges).

This might help clear this BAD record on your credit report.