Pimp Your Finances

I just ended my gym membership, but not without some pain.

To give you the back story, I signed up for a two year gym contract in January 2007, and recently received a letter in the mail saying that my membership was about to expire.  It also had some information about how to renew it, including payment options.

After I saw this, I assumed they would stop charging me.  Big mistake.

Come February, the $58 charge came out of my account yet again.  I was puzzled at first, then realized how foolish I was to expect a company to do the right thing, especially when they have automatic access to my bank account. 

I wasn’t sure why they were still charging me, so I logged into the gym account website, and saw that they had extended my contract for 30 years.  30 YEARS.

After I saw that, I went to the gym to cancel my membership.  They said that they couldn’t do it – I’d have to call the company that processes all of their billing.  So I called them up, hoping I could get a refund of the fees they charged after my account had expired.

First, I asked why they had charged me after the expiration date.  They pointed out a clause in the contract that said:

Services purchased under this contract shall expire on January 31st, 2009.  Thereafter, the term of this membership may be extended from month to month by paying a monthly fee…

Basically, they had the right to extend my membership as long as they wanted.  There was no way I could get a refund.

So next, I asked to cancel my membership.  They said they could do it, but they had to charge me the next month’s membership fees anyway.

“Why?” I asked, trying to to mind my temper.

The operator said that they required a 30 day advance notice, and she read the clause of the contract that specified this:

Buyer may terminate month to month membership at the end of any month, upon at least 30 days prior written notice from buyer to seller.

So not only could I not get a refund, but I had to pay another month of fees for a gym I wasn’t using.  I was seriously pissed off, but there was nothing I could do.  I had signed a deceptive contract.

The only options I have are to help prevent this from happening to others (hence this post), and to file complaints with the local chamber of commerce as well as the state attorney general.  I doubt anything will come of it, but I might have a case since they mailed me a letter suggesting that my contract had ended.

As frustrating as the gym membership has been, it’s finally over, and I’ve learned a few lessons, even if they were expensive.

1. Don’t sign up for long term contracts, assuming that you’ll change your behavior to take advantage of it.  I used the gym regularly for a solid year, but that’s it.  Two years was just a waste.
2. If you want to cancel a contract or subscription, submit notice in writing at least 30 days in advance.  Mail it by certified letter, and keep a copy for yourself.
3. Don’t give anyone automated access to your account unless its absolutely necessary.  You’re giving up your first line of defense if you do.

I hope this can serve as a wake up call for others to be careful with contracts.  I wasted $116 when I cancelled mine, but you don’t have to make the same mistakes.