Automatically Renewed Contracts?

[Crazy Flamer]

So I used to have a Gold's Gym membership, that I thought had expired. Apparently, they gave me four free months after my 2 year term was over and then started charging me about $50/month. Now this has been going on for a few months now, but the account from which the payment had usually been made from had since been closed.

I get a call from a Collection Agency saying I am behind six months on my membership payments. I tell them I never renewed my contract therefor there should be no reason for Gold's Gym to still be charging me.

I don't have a copy of the contract I originally signed, but is it possible for there to be a clause saying my contract automatically gets renewed? If there is, it it enforceable? Don't they need some sort of written affirmation from me stating I would like to continue the membership?

[Boblobla]

They did that to me. I called and yelled and got all of my money refunded.

[Bobblehead]

I called and yelled numerous times before the finally stopped billing. I needed to keep reversing the charges on my credit card until they finally relented.

They kept feeding me the, "The manager is the only one who can approve that and he {isn't here, is off today, is on the other line}" excuse and would never phone me back.

Golds billing is evil and they won't get another red cent out of me.

[Flaming Lips]

I don't believe those automatic renewals are enforceable. Take a look at sections 20 to 23 of the Fair Trading Act (Alberta). You can do a google search for the statute.

FL

[Ashartus]

I had a similar problem with Green Drop. I ordered 1 year of their service to get our lawn in shape after moving into a new house. The next year they started coming again and leaving invoices; I told them I'd only asked for 1 year and to cancel. They said their service is automatically renewed, but since I'd ordered over the phone and never signed anything they didn't really have any grounds to stand on. This year they came again, and told me they'd just put my account on hold for a year instead of canceling it. Needless to say they've never been paid a cent for any of the work they've done after the first year.

From what I've read, while I'm not a lawyer it looks like their automatic renewal has to be pretty clear and up-front in a written contract; otherwise you can pretty much tell them where to go.

[troutman]

http://www.servicealberta.ca/pdf/tip...rading_Act.pdf

http://www.qp.alberta.ca/574.cfm?pag...=9780779737963

Negative Option Practices

Definition

20 In this Division, “negative option practice” means a consumer transaction in which a supplier
(a) provides goods or services to a consumer, including the enhancement of a service that a consumer is already receiving, that the consumer did not request, and
(b) requires the consumer to pay for the goods or services unless the consumer informs the supplier that the consumer does not want the goods or services.
1998 cF‑1.05 s20

Application

21 This Division applies to a negative option practice if
(a) the supplier or consumer is a resident of Alberta, or
(b) the goods or services are provided from or received in Alberta.
1998 cF‑1.05 s21


No consumer liability

22 A consumer is not liable to pay for any goods or services received under a negative option practice.
RSA 2000 cF‑2 s22;2005 c9 s10


Negative option practices prohibited

23 No supplier may supply goods or services to a consumer through a negative option practice.
1998 cF‑1.05 s23

[The Special One]

World Health Club tried the same thing on me, I phoned them up and told them I would report them to the BBB if they didn't reverse the charges. They did it the next day.

[Crazy Flamer]

Thanks for all the responses. I called them and of course, the person who deals with these issues "wasn't in."

I am going to call tomorrow and if she's not in I will go down there myself. But if I have to do that someone is getting a new arsehole ripped!

[evilcougar]

Everyone here that's had these issues with gym's and green drop etc...you may want to check your credit report to see if it's reporting on there as a collection and make sure they have it removed. Can't tell ya how many of these "what the hell, i cancelled that stupid membership" collections i see in a day.

[Resolute 14]

You can thank the cable television industry for negative billing now being illegal. I'm rather surprised that these places are even able to still try to enforce this tactic.

[Crazy Flamer]

An update.

I called Gold's Gym and demanded they ask this collection agency to stop hounding me. They refused. I told them I would call the BBB and any news outlets that may be willing to listen.

Yet I keep getting calls from the Collection agency and now they have reported this to my credit bureau.

How do I get rid of this stupid thing? Can I call the credit Bureau myself and ask it to be removed?

An advice as what to my next step is with Gold's?

[Playfair's Hairgel]

here is my advice:

1 - ask for a copy of the signed contract. - if they cant provide it you win and dont have to pay anything.

2 - the FTA doesnt pertain to you, because you requested for the service when you signed the contract. Now there are ways out of it, you can offer a settlement or ask for a cancellation of contract because your contract is techniclaly up, but becausae you signed the auto renewal they have every right to go after you, but you have every right to cancel it. they may ask you to pay a cancellation fee or much less dollar amount to make it go away. however make sure you get everyuthing in writing, before you pay and after you pay.

[Maritime Q-Scout]

Originally Posted by Crazy Flamer

An update.

I called Gold's Gym and demanded they ask this collection agency to stop hounding me. They refused. I told them I would call the BBB and any news outlets that may be willing to listen.

Yet I keep getting calls from the Collection agency and now they have reported this to my credit bureau.

How do I get rid of this stupid thing? Can I call the credit Bureau myself and ask it to be removed?

An advice as what to my next step is with Gold's?

If it's gone to a credit bureau I'd call the bureau and tell them you're being billed for something you never signed for. See if they correct it, if they do not call a lawyer.

Originally Posted by Playfair's Hairgel

here is my advice:

1 - ask for a copy of the signed contract. - if they cant provide it you win and dont have to pay anything.

2 - the FTA doesnt pertain to you, because you requested for the service when you signed the contract. Now there are ways out of it, you can offer a settlement or ask for a cancellation of contract because your contract is techniclaly up, but becausae you signed the auto renewal they have every right to go after you, but you have every right to cancel it. they may ask you to pay a cancellation fee or much less dollar amount to make it go away. however make sure you get everyuthing in writing, before you pay and after you pay.

From how I understand it, and from what Troutman posted, even if he signed an auto-renewal in lieu of cancellation it doesn't matter. It's in statute that they cannot ask you to do that, so even if you agree there is no force and effect.

I could be mistaken, but contacting a lawyer is never a bad option, especially in this type of situation. I'd be willing to bet as soon as they get a letter from a lawyer's office on their desk they'll kiss your behind.

[Playfair's Hairgel]

credit bureau will not remove anythign unless you can provide the following:
1- release letter from the creditor
2 - the creditor themselves make a formal request to have it removed.
3 - proof of payment in full. however in my dealings they still need the above mentioned.

[Maritime Q-Scout]

I have no idea how the credit bureau deals with disputes. If what the above is true, call a lawyer.