Gym owe me £2000 for unuseable classes but won't refund me

[fairfield9]

I would really really appreciate some help, as

my gym owe me £2250 and will not refund me my money!

I am very stressed about the situation and do not know what to do.

 

In March 2013, I took out a 3-month membership with my local pilates studio. This cost £250 per month, for 8 classes.

 

Over the next three months of the membership I managed to use 18 classes of the 24 that comprised the 3 month membership.

 

However, in May (just before the 3 month membership expired),

I advised the studio by email that I had to go into hospital so

"I am not sure when I will be able to resume exercise, so it is probably best if I cancel for now.

I think I have some classes remaining from my 3 month course -

I will be in touch when I am well enough to use them."

My clear intention was that I no longer wished to continue my membership.

 

However, the studio continued to take £250 from my account each month.

This is on the grounds that their contracts states

"This is a 3 month agreement, which will thereafter be renewed on a monthly basis...

After successful completion of the initial core period the member may cancel this agreement

by sending a written confirmation to the studio before the first day of the final month of membership."

 

I failed to see that the studio was continuing to take money out of my account as I was first in hospital, and then suffered a bereavement

- it was a really difficult time personally, was not as on top of my finances as I would usually be (yes, I know!).

Plus, in my mind, I had written to cancel so had no reasonable grounds to believe that they would still be taking money from me.

 

In February 2014, I realised what had been happening and wrote to the studio,

telling them that they owed me nine months worth of fees, ie £2250.

 

They responded in March 2014, saying that they could not find a copy of my written cancellation confirmation

as they had not been able to find this in their records.

They said that in the absence of written confirmation,

I had a total of 86 unused classes in my account.

 

In April 2014, I had some time off work, and decided that as a gesture of goodwill

I should use up some of the classes (I had thought that £2250 was a large amount for the studio to have to repay

therefore if I used some of them up it would show willing).

 

 

I managed to use up a further 24 classes during April and May.

 

 

However during this time three things happened:

1. In May I suffered an injury during a class with one of the instructors.

I had some physio to help the muscle.

However I cancelled all my classes with that instructor

and refused to schedule any more with him

(that was the only class I had had with that instructor and I was not confident in their abilities).

 

2. I continued classes with the other three instructors that I did trust.

However in June I had a class with another new instructor, and suffered two sprained ribs.

This was very painful and again, I had to have physio.

I told the studio that I would not take classes with that instructor again.

 

3. During this period, I had found it increasingly difficult to get a class when I wanted one.

I repeatedly told the studio that I had seven hours a week when I was available to take a class .

They repeatedly told me that they did not have any classes available for me then,

and kept offering me classes at other times (eg during the working day, when I was at work!).

I have numerous emails between me and them documenting this.

 

As a result of both the injuries which caused me to lose faith in the studio,

and the fact that they couldn't actually provide me with any classes,

in June I decided that I had done enough to try and use up my classes

and now wished to be refunded the remainder.

 

I therefore wrote again to the studio, telling them this, and that I therefore wished to be refunded for my remaining 62 classes

- a total of £1940.

I enclosed a copy of the email that I had sent them in May 2013 cancelling my membership.

 

In September, I received a response from them.

 

 

They said:

1. they required a written confirmation sent to the studio address.

The email could not be taken as cancellation, as "it refers to the cancellation and re-scheduling of classes

but does not refer to the cancellation of your membership contract."

 

 

I don't think this is right - my email could not have been taken as referring to cancelling classes,

as at that point I did not have any classes booked to cancel,

therefore it should reasonably have been taken as meaning my contract.

 

 

Surely if they thought I meant cancelling classes,

as they say they did, then they would have responded to say that I didn't have any classes to cancel?

 

2. That "classes were used during this period (from April to December 2014) which in law is described as a continuation of a contract".

I clearly had no idea it would be taken a continuation of a contract

- I had thought I was doing them a favour by using up some classes

so they had to repay me less - so much for a gesture of goodwill!

 

3. That "as goodwill, they can offer me either to use up my remaining 62 classes

or to cancel my membership and lose all my money".

 

 

I don't see how offering me to lose all my money can be described as a goodwill gesture!

I also cannot use up my classes, as they have repeatedly told me that they cannot give me a class

when I am available to take a class.

(In addition, after not one but two injuries I have lost all faith in them.)

 

I really am at a loss as to what to do, and am very stressed about the situation.

I presume my only option is to take them to the small claims court on the grounds that

(1) I did cancel my membership

(2) they cannot fulfill their part of the contract because they can not provide me with a class when I can take a class and

(3) loss of faith due to injuries (and I have not attempted to reclaim the cost of my physio which I had to have as a result of the injuries,

which totalled around £750).

 

Does that sound right?

 

 

I would really appreciate any advice

- I obviously cannot afford to just write off nearly £2000, as they seem to be suggesting!

[fairfield9]

Sorry - just seen what a long post this is! I got carried away...

[renegadeimp]

If they took the money by DD, use the DD guarantee and get it refunded and then cancel the DD.

[fairfield9]

thanks renegadeimp! sorry for asking a stupid question, but it was on my Visa credit card - is that covered by the guarantee?

[renegadeimp]

On a credit card you can get a chargeback as the amounts were taken without permission.

 

Not sure but i think its section 75 http://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act

 

Once you have the money back ( some CC companies will fob you off, so stand your ground), you still have to deal with the gym. You may have to write to their head office as the regular gym staff are told to do whatever it takes to keep or get money. Some of the staff are even on a commission basis.

[dx100uk]

prob best to do a CPA

[dx100uk]

GENERAL NOTES ON CHARGEBACK & Continuous Payment Authority & BACS

.....

We have been telling people to put a letter into their bank instructing them

not to make any payments under any circumstances to these companies

.

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

usually this shuld be done using the numbe on your debit card

.

banks MUST follow written intructions from their customers !

.

This fsa guide has now been updated:

.

http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf

.

Here's the text:

.

Cancelling a regular

card payment:

.

When you give your credit or debit card details to a company and authorise them to take regular payments from your account,

such as for a gym membership or magazine subscription,

it is known as a ‘recurring transaction’ or ‘continuous payment authority’.

.

These are often confused with direct debits, but do not offer the same guarantee if the amount or date of the payment changes.

.

In most cases, regular payments can be cancelled by telling the company taking the payments.

.

However,

you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments.

Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments.

.

Be aware, though, that you will still be responsible for paying any money that you owe.

and that CANELLING YOUR CARD WILL NOT STOP THE CPA

.

..

.

New june 2013

.

Regulator orders Banks and mutuals to review complaints about not cancelling recurring payments from November 2009.

.

Consumers who have set up a regular payment from their account will now be able to successfully cancel that arrangement

by contacting their card provider, the Financial Conduct Authority said.

.

The FCA has been examining how easy it is for customers to cancel Continuous Payment Authorities (CPAs)

due either to payday lendersicon or for other regular payments such as subscriptions or gymicon memberships.

.

CPAs, which are also commonly called recurring transactions or recurring payments,

are relatively easy to set up but can be hard to cancel, causing problems for consumers trying to manage their finances,the FCA said.

.

Now, following the FCA review of how the largest high street banks and mutuals process requests to cancel CPAs, they have agreed that they will ensure that when

a customer asks for a recurring payment to end, that will be sufficient to cancel the arrangement. They have also confirmed that should a payment go through by

mistake following cancellation by a customer the customer will be refunded immediately.

.

In addition to securing this commitment, the largest banks and mutuals have agreed to review every individual complaint they have received about the non-

cancellation of a CPA and to pay redress where payments have continued to be made despite the customer cancelling the arrangement. This applies to all complaints

since November 2009 when the Financial Services Authority, the FCA’s predecessor, began regulating banking conduct.

.

Clive Adamson, the FCA’s director of supervision, said: “It’s important that consumers are confident that banks are meeting their everyday banking needs. Today

customers can be confident that when they ask for a Continuous Payment Authority to be cancelled – it will be cancelled - and that it can be done easily.

.

“We recognise that historically this is an area where some customers have struggled but the banks and mutuals have responded positively to our work on this issue.

From now on we expect them to be getting this right. In addition, they have committed to review past complaints.”

.

http://www.ftadviser.com/2013/06/28/...J/article.html

.

Also mentioned your displeasure that as whomever took your money had obviously attempted this many times

probably activating your banks own anti fraud software - nobody had the decency to inform my you this was going on.?

.In the FSA's own words:

.

..

What should I do about a payment from my account that I didn’t authorise?

.

Your bank must refund an unauthorised transaction.

Money can only be taken from your account if you have authorised the transaction

or if your bank can prove you were at fault –

see below.

Contact your bank immediately if you notice an unauthorised payment from your account.

If you are sure you did not authorise the payment, you can claim a refund.

However, your bank does not have to refund you if you do not tell it about the payment until 13 months

or more after the date it left your account.

.

Your bank must refund an unauthorised transaction

.

------------------

.

Your bank may only refuse a refund for an unauthorised transaction if:

.

? it can prove you authorised the transaction

– though your bank cannot simply say that use of your password,

card and PIN proves you authorised a payment; or

? it can prove you are at fault because you acted fraudulently,

or because you deliberately,

or with gross negligence, failed to protect the details of your card, PIN or password in a way that allowed the transaction

.

-----------------------

.

How quickly must my bank refund me for an unauthorised transaction?

.

The bank must make the refund immediately unless it has evidence that one of the above reasons applies.

Your bank may ask you to answer some questions and fill out a form confirming what has happened,

but it cannot delay your refund while it waits for you to return the form.

If the bank has evidence that one of the above reasons for refusing a refund applies,

it may investigate before making a refund

but must look into it as quickly as possible.

If your bank rejects your claim for a refund it should explain why.

If the transaction was on a credit card, the refund may not happen immediately.

But the card issuer cannot charge interesticon or ask for repayment of the amount unless it can prove you are liable to pay

[/b]

[fairfield9]

thank you SO much renegadeimp. that's really helped - i just spoke to my credit card company, they said they can do a chargeback going back 13 months. this means i can get money back from september 2013, which amounts to £1750!!! That still leaves me £250 out of pocket, but that's a lot better than £2000! (Incidentally, thanks for advice about standing my ground with them - actually they were very helpful - it was Mint Visa if anyone's interested.)

 

They also then referred me to Consumer Rights to check about money that they can't cover - ie before September last year. When I called them they said that as I incurred damage by going to the classes, the gym is liable under the Supply of Goods and Services Act 1982, because they did not exercise reasonable care of skill when carrying out a service for me. They said I therefore am entitled to remedy from them and that this would be either damages for my injuries, or refund of my money. They also recommended that I seek a personal injury lawyer.

[renegadeimp]

250 you can claim back via other means. The main thing is you get the money that you are entitled to and block further payments. Let us know when the money is back in the account

[slick132]

Hi Fairfield,

 

Before you seek the refund, be fair about the amount you ask for back because you may have to justify it. You should certainly pay for the first 3 month's classes. Take time to get this right and maybe avoid unnecessary problems.

 

I'll have to read through your first post again later but I think the gym are wrong to say you failed to "cancel" in your email. It looks to me like you DID cancel.

 

We know this is Golds gym but is there a separate admin company dealing with this matter.