Need urgent help

[mo17]

I recently signed up for a gym membership back in september, by signing a 12 month minimum contract - thinking that i would get my EMA from college to pay my direct debit every month. However, i have dropped out of college and now i cant afford to attend. Hence i want to cancel my contract but they dont let me. They say that i still have the pay the full amount (£480.00) that i signed up for. I am a young lad with no income coming in whatsoever. I havent been attedning the gym so i decided to cancel my direct debit because i didnt know what else to do. Now ive received several letters saying that i have to pay up or they are going to "hand the matter over to their solicitors". So i dont know what to do. is there any way out? I thought maybe i could use the fact that im only 17 so im not legally allowed to sign a contract by law (but dont know whether thats right or not). Can someone please help me??

 

[BankFodder]

Yes, you are a minor and so this is an unenforceable contract as it does not seem to be a contract for necessary living materials or accommodation or for education or training. - So long as you did not lie about your age on the application.

 

Furthermore they would not be entitled to claim the entire outstanding amount of the contract because that would amount to an unenforceable penalty. They are only entitled to recover administrative costs.

 

You should write to them a put them on notice that you are a minor and that you now understand that the contract is not binding on you and that you have no intention of proceeding with the contract.

 

Do nothing on the phone. Do everything in writing. Tell them also that if they continue to cause you problems that you will report them to the OFT and that if it gets too bad you will go to the County Court and seek an order to make them stop.

 

_All this - as long as you didn't tell porkies on the form.

 

Finally, go back to college

[mo17]

My D.O.B is stated on the contract */02/1994 - i turn 18 next month. So by law you are not allowed to sign a contract at the age of 17? So i've just paid 3 months money for nothing!! Because i signed up in september and went for a month. I made my first payment on the 15th october. Then i got dropped out of college and so stopped going gym. they sent me a letter in november saying they couldnt credit the payment for that month because i had no money in my account. So they issued me with a penalty charge of £10. My dad who is a law abiding citizen (like myself obviously) decided to make the payment on his credit card because he thought they were going to sen ballifs around - bless him lol... they sent me a same letter in december but my dad didnt pay this time and today i recieved a letter saying about taking it to the soilictors and that... So please are you sure i can cancel the gym contract because im only 17? Also heading of the contract i signed for says "fixed0sum loan agreement regulated by the consumer credit act 1964" - what does this mean?....Thank you for your help

 

And yep, im definately going back to college this year (i dropped out because i chose a subject i wasnt interested in and they didnt let me change it)

[mo17]

by the way, the letters i am receiving are from "debit finance collections (dfc) PLC" and the gym membership i signed up for is ultimate training centre in birmingham.

[BankFodder]

Yes you are allowed to sign a contract - it's just that it is not enforceable by the company. They should know better - (maybe they do!).

 

The document is a loan document - and it is a basic rule of English Law that all contracts for money lent to to be lent with a minor are void.

 

I'm not sure if you can actually claim the money back but best to just learn your lesson and let it go.

 

Write the letter - send it special delivery so that there is no doubt about them having received it. Keep a copy safely.

 

Send a letter to the loan company and to the gym company. If they hassle you then come back here and we'll see if you can claim the money back. I expect that you may be able to claim at least some of it as an unenforceable penalty.

 

In fact if they hassle you we'll help you establish an unfair relationship under s.140A Consumer Credit Act which could force them to repay the lot.

By the way they will probably try to blight your credit file. As the contract is void, they would not be entitled to do this. If they do tamper with your credit file then let us know and we will help you challenge it - if you are up for it, of course.

[BankFodder]

By the way, this is what you are looking for.

 

Old law, but still good law - http://www.legislation.gov.uk/ukpga/Vict/37-38/62

[BankFodder]

... My dad who is a law abiding citizen (like myself obviously) decided to make the payment on his credit card because he thought they were going to sen ballifs around - bless him lol...

 

You won't want me to say this but actually your Dad is right - because this is where these kind of gym debts often lead to. I suggest that you thank your dad rather than patronise him because at 17yrs old, getting tangled with these kinds of debt collection outfits, you are already out of your depth. You've already had to come here to get us to bail you out.

Geddit?

[mo17]

ok so heres a draft of my letter/email:

 

Account Name: *********

Reference Number: 0***********

 

 

To whom it may concern,

 

I wrote to you once before to infrom you that i wanted to cancel my contract, because i couldnt afford to attend. However, I have just realised that I am a minor and so this is an unenforceable contract. Therefore, I now understand that the contract is not binding on me and as a result I have no intention of proceeding with the contract.

 

Furthermore, if you continue to cause me more problems, you would leave with no choice but to report you to the OFT and i will have to go to the county court and seek an order to make you stop.

 

Kindest Regards

 

***********

 

 

Does this seem okay? :/ Im no good with this kind of stuff...

[mo17]

Oh trust me, i have definately learnt my lesson - I nearly got kicked out of the family home for this. But thank god ive got such an understanding family. Im never making the same mistake twice. I know how much problems ive caused for my family, but they have been supporting regardless. I have now realised i have to start taking responsibility for my own actions and that actions have consequences. I only signed up for the gym because of my mates - stupid mistake ever. They are partly the reason i dropped out of college too, but i was going through that teenage phase then. but i now realise how important family is! tahts why i am currently looking for a job to stand on my own two feet and i definately intend on going back to college this year!

 

But thank youu soo much for you help - very much appreciated!

[BankFodder]

Maybe you should ask your Dad.

 

It's a bit weak and gives information about your financial position which they have no business knowing.

 

Also, "Kindest regards" - seems a bit overly friendly to them given the circumstances. you may as well sign it love and kisses.

 

Dear Sir/Madam

 

Contract/Gym membership no. XXXXXX dated XXXXX and associated loan agreement

 

Further to my recent letter of XXXDATEXXX I am writing once again to inform you that I do not intend to continue with the gym contract or the loan agreement associated with it.

I am under 18 years of age and I am a minor and as such the contract is void - as you well know.

 

Please do not bother me with any further approaches about this matter. If you do then I shall pass this letter and any correspondence etc which I receive from you to the OFT as part of a formal complaint.

I will also consider going to the County Court to seek a refund of all monies paid as per s.140A and 140B Consumer Credit Act on the basis of the unfair relationship which very clearly exists between us.

 

Your faithfully

Make sure that you keep a copy of this

 

Make sure that you date it too - and sign it

[BankFodder]

Note, I have just amended the letter.

[mo17]

Contract/Gym membership no. XXXXXX dated XXXX (is this the date i joined up?) and associated loan agreement

[mo17]

where it says dated - do i write the day i signed the contract? :/

 

Thank you.

[BankFodder]

Yes

[mo17]

Thank youuuu sooo muchhh!!! Honestly youve been a great help

I will write, print and send the letter off tomorrow.

[BankFodder]

Yes, but keep a paper copy - not one on a hard disk which later goes down and you have nothing to show.

 

Keep a paper copy

[slick132]

Hi Mo17,

 

Let us know how they respond and, if necessary, we can suggest further steps you can take to get them off your back.

 

Normally, gym membership cases never end up with any court action.

 

Even in your case, which unusually involves a credit agreement, they would be very foolish to go near a court.

 

The gym or their admin company may not give up so easily but please tell your dad not to make any more payments on your behalf. He really doesn't need to. At worst, you can expect a few more exchanges of letters but their threats are just hot air !!

 

[mo17]

Hi, its me again... Just thought i'd let you know that no one has got back to me regarding the gym matter, since I sent the letter off (January the 10th)... Should I be worried? :/

[BankFodder]

You should only be worried because these people are often stupid enough to think that if they bully you enough they will get some money out of you.

 

keep an eye on your credit file and don't be surprised if you suddenly hear something several months down the line.

Come back here if you do.

 

You can send them a letter if you like, hassling them for a response. It will make you look even better if you can show that you have been making the running and that they are the ones who are making delays.

 

If you wanted some fun you could attack them for the money which you have paid to them over and above that which you used for the period of your active membership of the gym.

For a quiet life, write the money off but be prepared to use it as a basis for attack if they come at you.

[slick132]

Hi Mo,

 

Just keep your fingers crossed so that you hear nothing more from them.

 

However, as BF says, they are really pretty thick and there's no telling if they'll come back demanding money at some stage, or not.

 

Whatever happens, let us know and don't be bullied into paying them another penny.