DCA Arc Europe

[Nici1804]

I was a member at Reebok Sports Club I went just the once paid for three months then froze my membership as I was transferred in my new job to a different location. I then cancelled the member giving the one months notice. I have now been written to by Reebok saying I owe another months membership (£125) I ignored the demand.

 

Now a month later and I have had two demands from ARC debt collection agency demanding twice that £250! They are threatening CCJ if I don't pay it within 10 days. I know its bullying tactics and I don't want to pay.

 

Can anyone please advise me as to what I should do please?

 

I can afford to pay it I just resent being bullied and do not want them to issue a CCJ or default against me as my credit is totally clean.

 

Please can anyone help?

 

G

[slick132]

Hi Nici and welcome to CAG

 

1. When you signed up with the gym, what was the minimum m/ship period.

 

2. How many months fees have you paid in total.

 

3. What do the T&C's say about how and when you can cancel when the minimum period is over.

 

4. By what means did you give them notice, letter, email, phone call ?

 

I'll be back later to see your response.

 

Edited September 22, 2012 by slick132

[Nici1804]

Hey Slick,

 

Thanks for the response the notice to end the membership was a month. I originally froze the membership as I was working away but a month into the freeze I wrote to Reebok detailing my decision to leave. I think legally therefore I do owe them a month's subscription at £110 not the £250 that Arc have jacked it up to.

 

Thanks for your response.

 

Should I write to Arc saying the alleged debt is in dispute? Then write to Reebok attaching a copy of the letter I sent them?

 

Not sure Arc will accept though. I worried that ARC may add a defult to my credit history as they know for a CCJ I will vigourously defend any attempt at obtaining a CCJ in the County Court.

 

Any advice mate would be really appreciated.

 

G

 

 

 

 

 

 

 

 

 

Hi Nici and welcome to CAG

 

When you signed up with the gym, what was the minimum m/ship period.

 

How many months fees have you paid in total.

 

What do the T&C's say about how and when you can cancel when the minimum period is over.

 

By what means did you give them notice, letter, email, phone call ?

 

I'll be back later to see your response.

 

[slick132]

Hi Nici,

 

1. Was the minimum m/ship period just 3 months.

 

Can you also answer Q3 above.

 

If you read other threads here, you'll see that admin charges or fees are usually regarded as penalties against the consumer and, as such, they are unlawful and unenforceable. So don't worry about ARC adding their charges - they are unable to enforce them.

 

ARC are very unlikely to affect your credit files following the High Court ruling against AMSL last year when the OFT took them to court >more on this here - http://www.consumeractiongroup.co.uk/forum/showthread.php?320766-Ashbourne-Management-Services-Ltd-Contracts-longer-than-12-months

 

Like other gym admin companies, ARC do a lot of huffing and puffing but they are highly unlikely to take any case to court.

 

I'll suggest how to deal with ARC in due course but, in the meantime, ignore them.

 

Also, see this thread which was recently won - http://www.consumeractiongroup.co.uk/forum/showthread.php?365007-Cancelling-with-Nuffield-**CASE-WON**-!!&p=3976943&viewfull=1#post3976943 Follow the link in post #5 to a letter I drafted which offers to pay them what you're willing to offer to end the matter.

 

[Nici1804]

Hey Slick,

 

Thanks for the response.

 

Unfortunately i don't have the gym contract its been nearly a year since I joined and I don't have a copy I can try and see what's online. But from memory I think the notice period was a month and in writing.

 

I'll read your letter and see about making an offer, do i do this to ARC or to Reebok?

 

I've have moved since I was at Reebok so the address they have for me is out of date, but unfortunately if I did have anything issued against me it would be in my history as I have only been in my new address for 6 weeks therefore a search on previous addresses would reveal any defaults. This is what worries me the most as my credit is exemplary.

 

I can still post from old address (as I still live in the same building just a new apartment) should I write to them using the old address?

 

Thanks for your help.

 

G

[Nici1804]

Been online here is the Membership and cancelation terms and conditions:

 

11. CANCELL ATION AND FREE ZE OF MEMBERS HIP

(a) Membership cancellations must be processed by the 1st of each & every month. A full calendar month’s payment is required which means a minimum of one month and a maximum of 2 months final payment will be necessary depending on the date the cancellation form is received. For example, if a cancellation form is received on the 1st May only May will be due, however if received on 2nd May both May and June will be due. Request for cancellation must be made on the “Application to Cancel form” available from reception. Membership cannot be amended whilst in the notice period. Verbal instructions to amend or cancel a membership cannot be accepted without the appropriate written and signed form. Memberships can only be cancelled if subscription collection is active. (b) Monthly fees and/or prepaid fees are not refundable. © Reinstatement of a cancelled membership may be accomplished by payment of a new admin fee plus any unpaid balance from the previous membership. (d) Members may apply to have their membership frozen. Request for freezing must be made in writing on the “Application to Freeze Form” available from reception with a minimum of 7 days notice. There is an administration fee of £12 that must be paid in advance for the freeze period to commence. Should you wish to extend a current freeze this must also be put in writing, verbal instructions are not accepted. Request for freezing shall be at the sole discretion of the Club. The minimum time for freezing is one month and the maximum is three months. Members cannot apply to cancel while their membership is frozen (e) The Company shall have the right to suspend or withdraw Club privileges or membership from any Member who, in their opinion, has abused privileges or conducted himself or herself in a manner deemed detrimental to the Club staff or its Members. Such expulsion or suspension shall become effective immediately and no reimbursement will be issued to such Member of the pro-rated portion of their unused monthly fees. There will be no refund of the admin fee. The Manager or a designee shall have complete charge of the Club whilst on duty. (f) Members may be suspended or expelled from the Club immediately if they display conduct which is, or is likely to be in the sole opinion of the Company, injurious to the character of the Club or the interests of the Members and staff, or if they commit a serious or repeated breach of these Rules, in particular where amounts owing to the Company are unpaid. (g) An expelled Member forfeits all the privileges of the membership and all rights against the Company. (h) An expelled Member will not be entitled to any refund of their admin fee or subscription and must pay all amounts owed to the Company forthwith.

 

I definitely cancelled giving a month. Does this help me?

Thanks for the advice Slick.

[slick132]

Hi Nici,

 

We need to know, what was the minimum contract period you signed up for ? Even if you don't have the contract, can you remember this ?

 

Can you recall how long you "froze" the m/ship before cancelling.

 

I'm wondering why they've started chasing you now if you joined a year back.

 

Use you current address for any contact with the gym. Ignore ARC for the time being !

 

Their T&C's about cancelling are not reasonable or enforceable. In particular, they say :-

Request for cancellation must be made on the “Application to Cancel form” available from reception. Membership cannot be amended whilst in the notice period. Verbal instructions to amend or cancel a membership cannot be accepted without the appropriate written and signed form.

 

In his ruling against AMSL, Mr Justice Kitchin said cancellation could be notified verbally in person or by phone; by letter or email; or simply by actions such as cancelling your DD mandate.

 

Please give answers to my Q's so we can suggest how you can proceed.

 

[Nici1804]

Hey Slick,Really appreciate this.I took out the membership for two months and then froze the membership for the maximum allowed three month period as I moved job locations. I emailed the application to freeze the membership to Reebok and it was confirmed as accepted. Then a month into the freeze period it was made clear that I would not be returing to the Canary Wharf location for work so I wrote and advised that I therefore needed to cancel my membership. I heard nothing. I did receive one demand from Reebok for a month's membership fee immediately after the freeze period expired (when they then continued to try and evoke my direct debit, but I had stopped and cancelled it with my bank). I ignored it and didn't think that they would pursue.Then Arc began their mail campaign.and the £115 fee demand jumped up to £250! Does this give you what you need?

[Nici1804]

Apologies read your thread again and your orginal questions.When I took out the membership I wasn't aware that there was a minimum contract period? When I froze the membership and called Reebok and then emailed over the form to freeze they never mentioned a minimum contractrual period.I've tried to look for the email contact I orginally signed but unfortunately it was with a previous employer's email address/system and i have since moved jobs, so i no long have access to the joining email.Hope this answers everything you need?

[slick132]

Hi Nici,

 

Best way forward here is for you to write to Reebok asking for sight of your signed m/ship contract so that you can review what payments, if any, are outstanding.

 

Tell them that, in the meantime, you consider the matter to be in dispute and they and ARC should stop making demands

 

Once you get this, you can confirm exactly what the minimum agreement period was and we can suggest your next best move.

 

Edited September 24, 2012 by slick132
typo

[Nici1804]

Agreed.I'll write to them today.I'lll keep you posted.Thanks for your help.G

[Nici1804]

Slick,Got contract - no minimum membership period stated.Notice period requires a months notice before the next billing cycle.So my notice period was within the month and before the next billing cycle. So I still maintain that i owe them nothing.So in brief:Joined in November paid 2 x months Nov and Dec £106 each month by DD. January given notice I wanted to freeze membership paid the £12 fee. The freeze was allowed for three months. In February I advised I wished to cancel my membership and wrote to them. I also cancelled my DD.They waited to the end of the free period March/April to ask membership payments. Then nothing until 2 weeks agao when ARC began their mail campaign.Should i write to ARC offering a month as full and final settlement? Thanks for your help.

[slick132]

I think you would be best to offer to pay them a month's fee for the notice period because you only gave notice to cancel during the freeze. But I also think this should be made conditional, upon their acceptance of your off in F&F Settlement.

 

See the letter here about offering a month's fee for the notice period - http://www.consumeractiongroup.co.uk/forum/showthread.php?353762-Credit-Resolution-Services.&p=3869490&viewfull=1#post3869490

 

You can perhaps say :-

 

Although I gave notice to cancel the membership during a "Membership Freeze" period, I now feel that it may have been reasonable for me to give one month's notice and pay a fee of £106 for the notice period, as suggested by Mr Justice Kitchin in his High Court ruling against Ashbourne Management Services.

 

Accordingly and without prejudice, I now offer you £106 being one membership month's fee in Full and Final Settlement of all amounts owed to the gym. If you accept my offer within 14 days, I will pay you and bring an end to this matter.

 

If you fail to respond within 14 days or insist that I pay any more, my offer will be withdrawn and I will not communicate with you further.

 

I will not pay you anything in respect of admin fees as these are unlawful penalty charges which are not enforceable at law.

 

See how they reply.

 

[Nici1804]

Will do.I'll let you know how they respond.Thanks Slick.G