MickeyC123
New Member
In November, 2005 I joined a gym and signed a 1-year contract. The monthly fee was $39.99, and would be deducted monthly from a credit card (I used a check card so it would be deducted from my bank account). In February, 2006 I was fired from my job and needed to move out of state immediately. One of the first things I did was call the gym to cancel my membership. They informed me that there would be a $50 early termination fee, which I agreed I would pay. I hadn't gotten around to it immediately, and less than a week later the gym deducted March's membership fee from my account (again, $39.99). I was infuriated. I called the gym to complain but they said nothing could be done and I would still need to pay the $50 termination fee. I promptly closed my bank account to prevent any additional payments from being withdrawn.
I took no action until September, 2006 when the gym contacted me to collect $553.66 in unpaid dues (and interest, I suppose). Over the phone, they offered to settle for $300. I rejected their offer and proposed to pay the early termination fee of $50, with the condition that the March, 2006 dues they withdrew from my account is applied to that. In otherwords, I offered them $10. They said that was unacceptable due to their collection agency fees (they told me those fees were approximately $80). I offered to pay the $10 plus the collection fees (a total of $90). They rejected that offer as well.
I filed a complaint with the state's Better Business Bureau in December, 2006. They contacted the gym, but did little to remediate the situation.
I received a call from a collection agency today (March, 2008) telling me that the fee was referred to them and that I would have to pay $490 to settle this matter.
At this point, I feel that (contract or not) the gym provided no service or goods to me for which I would owe them any more than the $90 i previously offered to pay them. I'm not worried about getting a blemish on my credit report, but I'm worried about any legal ramifications if I opt not to pay this amount. Do I have any options at this point? Can the gym or collection agency file suit against me?
I took no action until September, 2006 when the gym contacted me to collect $553.66 in unpaid dues (and interest, I suppose). Over the phone, they offered to settle for $300. I rejected their offer and proposed to pay the early termination fee of $50, with the condition that the March, 2006 dues they withdrew from my account is applied to that. In otherwords, I offered them $10. They said that was unacceptable due to their collection agency fees (they told me those fees were approximately $80). I offered to pay the $10 plus the collection fees (a total of $90). They rejected that offer as well.
I filed a complaint with the state's Better Business Bureau in December, 2006. They contacted the gym, but did little to remediate the situation.
I received a call from a collection agency today (March, 2008) telling me that the fee was referred to them and that I would have to pay $490 to settle this matter.
At this point, I feel that (contract or not) the gym provided no service or goods to me for which I would owe them any more than the $90 i previously offered to pay them. I'm not worried about getting a blemish on my credit report, but I'm worried about any legal ramifications if I opt not to pay this amount. Do I have any options at this point? Can the gym or collection agency file suit against me?
