Warning: Major rant ahead!!

[Lisa W]

I am so frustrated right now! I've noticed this pre-authorized payment coming out of our joint account but never took much notice of it before because it wasn't large enough to shock me and it was an amount that never really "caught my eye" if you know what I mean. It was $21.40. Could have been any purchase, right? Wrong! I started trying to figure out what this was. After a few (long) calls I tracked it down to be a preauthorized payment for a membership at a gym.....that my DH joined five years ago! I called and was told that their memberships run for 12 months and after that was completed that there had to be written notice 30 days in advance to cancel, otherwise they continue to take out monthly payments on a membership. I had them fax me the contract and yes, my husband did sign them. However, I think I may have found a hole in it all. It looks like that there are two areas that required initials that didn't get initialed: "Maintenance Fee Guarantee" (where they state they continue to take out monthly payments after the first 12 months) and the area, "I/We certify I/We have read both sides and understand the terms of this agreement.......". Both these areas weren't signed or initialled as required.

I'm upset not just because of the money (although that's a big part of it) but the fact that this centre would continue to withdraw even though they have records that show that he hasn't been there in four years. No phone calls, no letters. What if he had been seriously ill, or injured? They look the other way as long as they get their $21.40 a month!

Needless to say, I'm also a little embarrassed to admit that I never really noticed the withdrawl sooner. When I first started noticing it I thought it was one of our RESP's. My bank statements and online banking don't show the name of the pre-auth. payment.

Wish me luck.....I'm waiting for a return call from the manager. :mad:

[SLFlyt]

THAT'S OVER $1,000!!! I WOULD GO DOWN KICKING AND SCREAMING!!

The manager will probably say he's going to stop billing you. I doubt he will offer to reimburse you. But I'd sure do whatever I thought might work to get him to give me my money back.

GOOD LUCK! Let us know what happens.

[DmOrtega]

At 21.40 a month for 12 months = 256.80 per year. Multiply that by 4 years and you've got 1,027.20. What about the accumulated interest? You might consider small claims court, if they are in violation.

[jphilg]

Hmmm...unfortunately, that is the business model of many gyms. Contractually, it is your responsibility to cut off the withdrawls. You should be able to make some noise and get them stopped immediately, rather than with 30 days notice, but I don't see why you'd be entitled to a refund.

It is really devious, though. I hate how vigilant and sort of suspisciuous you have to be when joining a gym.

[Jazzmatazz49]

Thank goodness you figured that one out! From experience, I'd guess the gym will tell you something like "You snooze, you lose." But at least it won't keep coming out. Lots of paid websites automatically renew your membership as well, so you might want to keep a heads up if you belong to any.

[Ms. Chevious]

Could you maybe try taking it up with your Visa company? Maybe a long shot given all the years of payments but might be worth a try.

That's the reason I always paid cash, yearly, for my gym memberships when I had them (and usually got a better deal that way too) - that way they'd never have an account to draw from. I also get a new credit card each year, cancelling the old one, so there's no chance of any continuous billing happening from any company I deal with since the number changes once a year.

[badunnin]

OnStar does the same thing with its services. I had the misfortune to work in the department that took the calls on this issue. Keep on them, and don't stop until you get your money back.

[Kay Henderson]

It is my understanding that written into the contract with many gyms (and a number of other types of businesses as well), are the statements that it is the responsibility of the consumer 1) to notify the business that they are ending their membership, and 2) to arrange with the bank so that there will be no more automatic withdrawals.

I got burned once, too, but it was clearly my fault.

Kay

[DocAgocs]

Many businesses that authorize payments this way do not do it in a legal fashion. That doesn't mean you should sue them, but what it does mean is that you can probably call the credit card that has been getting charged and get the charges reversed. It's worth a shot. In this case I would hardly feel bad about it because the services weren't being utilized.