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03-02-2005
Problem-solving charity Citizens Advice has issued a warning for people to beware of the unscrupulous sales tactics used by gyms to get people to sign up for club membership.
The warning comes as the Office of Fair Trading launch their Scams Awareness Month to alert the public to deceptive and fraudulent mass-marketed scams.
Citizens Advice is concerned that many people sign up to join a gym as one of their new year’s resolutions, but when they decide to cancel their membership, they discover that they are unable to do so. Often they have unwittingly signed a credit agreement.
Evidence from Citizens Advice Bureaux around the country shows that many gyms do not clearly state that they are asking customers to sign a credit contract. In many cases the terms of the gym membership including how to cancel are detailed in very small print, which customers rarely read and the sales staff fail to explain when signing new members.
In one case a CAB client in Merseyside was charged £11 per month just to use the changing rooms and would have to sign up for three years to access her ‘prize’ of free membership.
A CAB client from South London found she would be charged for a further three-years membership because she hadn’t cancelled within 12 days of her contract renewal date.
In another case a CAB client from North London took advantage of a special offer of a cheap membership fee in July. He filled in a direct debit and was told he would not be charged until he used the gym. He did not use the gym, as he could not find work to pay for the membership. In September he received a letter saying he had fallen into arrears and he needed to pay the full balance of £576.00.
When a CAB client from Wiltshire and her partner were informed that they had both ‘won’ free membership to a gym. They signed up to take advantage of this prize and only later discovered that their ‘free membership’ form was a credit agreement. They tried to cancel and did not attend the gym. Three years later they are facing court action for a membership they were mis-sold, that they did not want and have never used.
The law relating to gym membership is the same as that for any goods and services. A contract cannot be disregarded simply because the member has decided they no longer wish to be a member of the gym, just because they don’t want to go anymore. So whether you can cancel or not depends on the small print.
Most gym memberships are not sold on a pay as you go basis. Gyms selling membership are also often selling you a credit agreement to pay for your membership fees. Often these credit agreements are for a set period of time - a yearly or two yearly contract. Payments for the credit are usually made by a monthly direct debit from your account. Cancelling your gym membership won’t cancel the credit agreement so you are still liable to pay to the end of your credit contract.
Teresa Perchard Director of Policy at Citizens Advice said:
“Gym credit deals too often overstep the mark. We often see evidence of gyms ripping people off, by failing to point out to their customers exactly what they are signing up for.
“People mistakenly sign a contract thinking they are just setting up a direct debit from their bank account to pay their fees ‘as they go’. It is only when people try to end their contract they realise that they have signed a credit agreement, which they can’t get out of for a long period of time.
“This can end up costing people a great deal of money for a membership they no longer want.
“We are urging people not to fall at the first hurdle. Make sure you read the small print in every document you sign. Work out exactly what you are signing up for and if you are signing a credit contract find out exactly how long for.”
More information about health club membership terms can be found on the Office of Fair Trading website  www.oft.gov.uk the leaflet ‘are they fit to join?’
Crunch time for gym rip offs - with this Citizens Advice fitness plan you will avoid being caught out by the pilate pirates…
- ·Muscle in on the sales person if you do not know where to find their promises in the written contract - don’t be shy to ask.
- ·Don’t sweat if you do not understand the form or any of the words or meanings are unclear; make sure you get a full explanation before signing the agreement.
- ·Weigh up all the options - look around to make sure you are getting the best deal for you
- ·Don’t stretch your budget - only join up for membership if you are sure you can afford the repayments.
- ·Look out for terms that automatically extend your official membership period without your actual consent.
- ·Run a mile if… you find out that you have won a prize from a competition that you never entered! If you do wish to investigate make sure you find out exactly what the terms of your prize are before paying any money or signing the contract.
- ·Bend into action - check to see if there are any additional costs such as supplements to use certain facilities.
- ·Exercise your rights - before you sign, check the agreement for;
oHow long you must be a member
oExactly how you can cancel your membership
oWhat you are paying, who to and for how long
- ·Jump at the chance to check with your doctor if you have any medical problems to ensure that exercising in a gym would be really beneficial to you.
- ·Take a break - check out if you are able to have a break from membership at any time - you never know what is round the corner. Some gyms offer a reduced cost for people who have to go away to work or get pregnant.
Notes to editors on Citizens Advice
- The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales; www.citizensadvice.org.uk
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
- Advice and information www.adviceguide.org.uk
- Volunteer hotline 08451 264264 (local rate)
- Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
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