What happens to a membership contract when the gym unexpectedly closes?
December 16, 2007 6:50 PM Subscribe
The gym I joined 6 weeks ago went belly up over the weekend and locked their doors. Supposedly a different gym not affiliated with the bankrupt gym is buying all the contracts, but nothing is clear at the moment. What are my rights in this situation?
posted by 45moore45 to grab bag (9 answers total)
The gym I joined 6 weeks ago charged a membership fee and my contract was for monthly "no hassle" payments charged to my credit card with a with 60 days notice cancel policy.
I went to the new gym supposedly buying our contracts and they immediately tried to up sell me a different type of membership that cost more than what I was paying although they said they'd honor the current rate of my membership. What are my rights in this situation? I have notified my credit card company and I am going to dispute the membership fee I paid 6 weeks ago since the company has reneged on the membership by closing shop.
I had a good deal at the first gym and while I'd like to think the new gym really will honor it, they are under no obligation to do so and as this situation unravels I suspect they will decide not to honor certain terms I had with the original gym and will want to upgrade me to a more expensive type of membership. My membership was to be a month to month I could cancel at with 60 days written notice. How does a consumer protect themselves in such a situation? I had an automatic credit card deduction with the other gym and I question whether they have the right to transfer that information to a new gym I am not even sure I want to be part of since the location is not as convenient. The old gym did not notify members of their abrupt closing and the new gym seems unaware of the terms of the agreement or if there really is an agreement--they are allowing us to use the facilities for now while they figure out what is really going on. There are several hundred displaced members and no one really seems to know if they should go with the flow or not. My credit card company said they cannot block future automatic payments but that I could cancel my card and get a new one to stop the transactions. Am I obligated to continue a membership at the new gym? Am I in breach of the contract if I just cancel my credit card and refuse to pay? I don't really understand my rights under a contract when the company issuing the contract flies the coop and hands the contract and my credit info off to some third party without my permission or consent.