LA Fitness - ARC Europe - £440 and court threat?

[szalasw]

Hi All!

 

I have been signed up with LA fitness since roughly October 2014.

When I was signing my contract I stated I might change my job in few months

and the person handling my contract was very friendly

and assured me few times that it takes only 5 minutes to break the contract

and there will be no problems, I only need a proof.

 

In January 2015 I was going back to my country and wasn’t sure if I am going to go back. I

wrote a letter and gave it to the person at the reception together with copy of proof of booking my flight ticket.

She said I don’t need to worry and she will send it to Head Office.

 

After few days she called me saying there are not enough information on the proof of booking

and I need a copy of actual ticket (I didn’t have it as it was before check out).

I was flying after two days and didn’t have time to bring it

so I left it at that point and just cancelled my direct debit.

 

I was back to England after few weeks and got a letter from LA Fitness with outstanding balance.

I didn’t pay it and just ignored the letter.

There were more letters and then ARC Europe started to chase me.

 

I called LA Fitness saying I gave my letter and what happened to it and they said they never received it (because person at the reception never passed it).

 

Some time ago ARC Europe called me and I confirmed I still live at the same address as I thought the call was from someone else.

When I realized who are they I said that my cancelation letter got lost in the process and I don’t have any copy of letter or flight tickets anymore.

 

 

The person from ARC Europe was very rude and hanged up.

 

I got another letter now saying I owe them £440…..! And they are going to take my case to the court.

 

I am not sure if the template letters you published are appropriate.

 

 

I know it is partly my fault as I should bring my flight ticket but I went there few times before trying to cancel

and they were making problems or there was no person available who could help me, that’s why I gave it up.

 

I feel lost now. Could you advise me, please?

[Bazooka Boo]

OK not to worry, hello and welcome to CAG.

 

Do you know what gym membership you signed up to?

 

I would think that the only payment you would need to make is one months membership fee, as that is in their cancellation terms,in that you

need to give them 30 days notice you're cancelling.

 

Stay OFF the phone from now on, if they ring just say ''everything in writing'' and hang up.

Whatever it is they want to say can be committed in writing.

 

I wouldn't worry about court, I've not heard of anyone being taken to court for non payment of gym fees!

 

There is also this very good latest court ruling, which they will not have told you about.

I'm pretty sure Slick will be over later to give you some very good advice, and a letter to send them.

 

http://webarchive.nationalarchives.gov.uk/20140402142426/http://www.oft.gov.uk/shared_oft/consumer-enforcement/ams/order.pdf

[szalasw]

Bazooka Boo, thanks a lot for your reply.

 

Template of the letter would help me a lot and also I'm not sure if I should send it to LA Fitness or ARC Europe.

 

It was a student membership.

 

Thanks,

Edited May 2, 2015 by slick132
name removed

[Bazooka Boo]

Thats OK, your more than welcome!

 

There's no rush, slick132 should pick this up later and he will advise you what to say and to whom..

[fkofilee]

Ignore the threat from ARC Europe, and Major Law... Its just hot air

[slick132]

Hi Szal,

 

It's a shame you have no copy of the cancellation letter. In future ALWAYS keep copies of all letters. This is a rule for life, not just gym agreements.

 

Also, don't use the phone to talk to the gym or ARC. Keep everything in writing.

 

1. Did you sign for a minimum 12 months agreement.

 

2. When did you hand in the cancellation letter.

 

3. When did you fly out from the UK.

 

4. When did you return.

 

Now you're back, do you want to continue membership with the gym, or not.

 

It is not unreasonable that you continue with the gym until October 2015, maybe with credit for time you spent outside of the UK.

 

You can take your time to reply to ARC. They threaten court all the time but it's normally no more than a threat.

 

I've removed your name from the post above. Best to stay anonymous !

 

[szalasw]

Hi slick123,

 

I'm so bad at keeping my documents together.

 

1. Yes, in the end of October 2014

2. End of January 2015

3. Middle of February 2015

4. In March but when I was leaving I wasn't sure if I go back.

 

I can't afford continuing contract at the moment as it is £40 per month.

 

I also changed jobs in the meantime.

 

Is there any solution in my case?

 

Thanks for removing my name!

[slick132]

Hi Szal,

 

As you returned to the UK quite quickly, you cannot cancel on the basis of leaving the UK.

 

You say you have now changed jobs. Does that make it difficult to use the gym or does your new job take you away for periods of time.

 

If so, you could possibly have grounds to cancel due to the change of jobs.

 

Let us know ............

 

[szalasw]

Hi Slick132,

 

It's further from la fitness than previous job but I have the other la fitness gym within 30min journey from my house.

 

My contract says it has to be further than 10miles to cancel on distance basis.

 

My job doesn't take me away or make going gym difficult, unfortunately...

Edited May 5, 2015 by szalasw

[Bazooka Boo]

Can you reduce the cost of the gym by using it off peak, or changing the package somehow?

[fkofilee]

With LA Fitness and their Contract periods it doesnt allow a reduction in it as you are "Locked" in for 12 months.

[Bazooka Boo]

With LA Fitness and their Contract periods it doesn't allow a reduction in it as you are "Locked" in for 12 months.

 

Hmm, I wonder if that could be argued as 'unfair terms' ?

http://www.bbc.co.uk/programmes/articles/4nGn47ySR8W06G5LD8GVc48/gyms-la-fitness

 

The undertakings to the OFT from LA Fitness, DWS and Harlands Group (a gym management company which manages over 900,000 customer contracts) include:

 

• Extended rights for members to cancel their contracts early should their circumstances change in a way that makes attendance at the gym difficult or unaffordable - for example if they lose their job or suffer an injury.
  
• A commitment not to describe membership as being of a fixed duration, if the contract automatically continues on a rolling basis after the initial membership period has expired.
  
• Greater transparency about key membership features, including initial membership periods and cancellation rights, and for these to be provided upfront as part of the sales process.
  

http://www.moneywise.co.uk/news/2013-09-10/la-fitness-improves-gym-contracts

[fkofilee]

Possibly but then LA Fitness could argue, why take the contract if you knew you were;

 

a) Leaving the UK

b) Unable to afford the membership

 

But this is where you then string them up;

 

Did they give you the copy of the membership contract saying it was 12 months?]

They must have a provision to allow dropping it if you are suffering a shortflow of cash. etc (Youd hope at least, They gym i go to is rather ethical about that)

[slick132]

Hi Szal,

 

What was the m/ship fee each month ?

 

At the moment, I do not think you had proper grounds to justify ending the membership agreement. I know that you were not sure if you would return to the UK, but you DID. So effectively, your absence from the UK looks like nothing more than a short holiday.

 

Regarding the change of jobs, you have confirmed that you can still attend one or other of the LAF gyms, so there are no grounds to cancel because of job change.

 

So this leads us to having to deal with ARC and their demands. I would write to the gym saying :-

 

Dear sir or madam,

 

I refer to my membership at [town/city] gym.

 

I had to cancel this due to leaving the UK in January and not knowing if I would return to the UK at all. However, I was able to return to the UK in February.

 

ARC Europe are now demanding £440 for the remaining 12 months membership and admin fees which I cannot afford.

 

I am willing to set up a new membership DD mandate but only if you agree to stop ARC making their demands. I am aware that ARC's admin fees are unlawful and unenforceable penalties and I will not pay these.

 

Please let me know about setting up the DD mandate again and, until this matter is resolved, please stop ARC making any further demands.

 

Yours faithfully,

 

Szal

 

Send this to the local gym and get a free Certificate of Posting at the Post Office when you send it. OR take 2 copies of the letter to the gym, hand one to the staff and have the staff sign and date the 2nd copy as proof that they took it. Keep the 2nd copy.

 

Send a copy of the letter to ARC saying :-

 

This matter is in clear dispute and you are required to cease demands until the issue with the gym is resolved.

 

Let us know what happens.

 

[szalasw]

It's £40 each month. Is there any other solution as I don't want to set the DD as I won't be using gym anyways.

 

It was the first contract I signed in my life and they assured me it will take 5min to dissolut it. I had no idea there can be such a big problem. I'm very angry with myself now and wish I have never signed it.

 

What if I moved out further from gym, would it be the basis for dissolving the contract?

[slick132]

Hi Szal,

 

This is a useful lesson for you . NEVER trust what someone tells you. Take your time to read a contract or agreement before you sign.

 

If you move more than 10 miles from the nearest LAF gym, you would have grounds to cancel.

 

But ARC may still chase for payments that were due after you cancelled the DD mandate.

 

Send the letters off for now and we can deal with the replies in due course.

 

[szalasw]

Hi Slick132,

 

Thanks for the help.

 

I am going tot he gym to hand in the letters.

I am also going to the post office to send the copy to ARC Europe:

 

Dear sir or madam,

 

 

I have attached the copy of the letter I sent to LA Fitness.

This matter is in clear dispute and you are required to cease demands until the issue with the gym is resolved.

 

 

 

Yours faithfully,

 

 

XYZ

Membership No: xxxxxxxxxxxx

 

 

Is it ok?

 

They also sent me text message today saying: Please contact Jo at ARC Europe urgently on xxxxxxxxx.

[slick132]

That will be fine !

 

[szalasw]

Hi

 

I went to the gym and asked for manager to hand him a letter. He told me he will scan the letter to the head office and that they will call me and I should tell them what happened and I probably won't have to pay the whole sum. I got him to sign the other copy of the letter as well.

 

Should I pick their call? If yes, what should I say?

 

He also said I don't have to worry about ARC Europe and chat to head office first and they will make them stop messaging me so I didn't sent the letter to them yet.

Edited May 5, 2015 by szalasw

[slick132]

Hi Szal,

 

Good that you got the manager to sign as proof of receipt of your letter.

 

If the Head Office call you, listen to what they say to see if they are looking to help you. If they are just wanting you to pay the "arrears", tell them you cannot discuss this by phone and you need their reply in writing.

 

If they argue and try to discuss it further, just say, "I can only deal with this in writing." Then hang up.

 

Keep us informed.

 

[szalasw]

Ok many thanks, fingers crossed! I'll be informing you all.

[slick132]

I forgot to say, do NOT worry if they tell you you have to pay or you'll get in trouble.

 

They cannot do anything much and we'll help you !!

 

[szalasw]

Hi!

 

 

I called the Head Office today. They told I need to pay £40 (for January, when I cancelled direct debit) and I need to renew my membership which will be extended for 3 months (Feb, March and April). I have been told to call them again tomorrow and set up a new direct debit and I will be able to use gym from tomorrow again. The person I was speaking to assured me that once the payment is set up correctly they will contact ARC Europe and cancel all the fees.

 

 

I didn’t really want to renew my membership but after all £40 fee and renewing membership is better than paying £440. I am also aware that it was partially my fault and I had no proper grounds for cancelling so I guess conversation went in the good direction.

 

 

Do you think I should agree for paying £40 plus extended membership?

 

 

Thanks!

[fkofilee]

Well as you are potentially "Out" Of membership as it has gone into arrears, I wonder if you could renegotiate a contract but which you pay less (Off peak only for example)

Yes you potentially did wrong by cancelling but at the same time, you can turn this into your advantage:)

[szalasw]

It's ridiculous but £40 was the lowest monthly fee as I took the student membership. There is no off peak option. They made now 18 months contracts which are supposed to be cheaper but they are above £40 in all LA Fitness clubs in my area.