Cancelled Golds Gym after 12 mts. CRS now demanding £367.20!

[kaju1900]

Hello,

 

I hope you can help.

 

I've just joined CAG after I received a letter yesterday from CRS demanding £367.20 on behalf of GOLDS Gym.

 

The letter came out of the blue and they state they've sent previous letters which they haven't at all, so a blatant lie!

I was so distressed yesterday and had a sleepless night worrying about this.

I really need some advice and help!

 

To give you the background,

I joined Golds with my friend in October 2013 at a special rate given by the manager of £25 per month.

We both completed the minimum 12 month contract

 

 

in December 2014 we both decided to cancel our membership due to work commitments.

 

 

My friend got a job outside London and I got a job in Slough which is 42.40 miles from where I live.

The hours and shifts I work mean't I would never be able to use the gym anyway.

 

My friend and I went to the gym together on the 14th December to give notice and cancel,

I took a handwriiten letter and handed it in as did my friend.

 

 

The person on reception was very busy and on her own, dealing with phone calls and members going in and out,

and she said that's fine and she would process both our cancellations together at her end later

and that no money would be taken from January 2015.

This was incorrect they still took money for January and February

 

 

i called my bank to cancel the payment to Golds to avoid further payments.

I cancelled my DD late February to stop further payments going out.

 

Yesterday I received a letter from CRS demanding £367.20, of which £97.20 is an 'admin' fee to bring my account up to date and to avoid further penalties.

They claimed they had sent several letters which they haven't as I've never received anything from them since cancelling my membership.

 

I read through the gyms T's and Cs and after the minimum 12 months you can cancel anytime by giving notice which is exactly what I did.

But now this letter arrives.

 

 

I went to the gym last night in order to resolve this and spoke with the manager who claimed I never cancelled my membership and that's why I received this letter.

He said they had texted me, which they haven't and said they had sent me letters which they haven't either.

He was very unreasonable and dismissive and said there was nothing he could do and to contact CRS.

 

 

I said you instructed CRS so why can't you just tell them there is no claim here

as I did cancel my membership in accordance with the T's and C's after a full 13 months,

and giving notice in person and in writing.

He said they never received anything.

This is a complete and utter lie as I went with my friend to cancel.

 

 

He said I would have to pay the amount and there was no point continuing the conversation.

I had a sleepless night worrying about this as I'm trying to keep my credit file clean as I want to apply

 

I called CRS first thing this morning and spoke with Michael Dunn in debt recovery saying that he would pursue this with me

and I said I would not pay as I didnt owe the gym anything.

He was extremely rude and dismissive and im concerned.

 

I checked with my friend and said she's not received a similar letter which makes me think this is a [problem] as we both joined together and cancelled our membership together.

 

Can someone please help. I can't stop worrying.

 

 

Any advice/guidance will be appreciated. Thank you

Kaju1900

[citizenB]

If you have a quick look round other threads, you will see that you are not alone with this type of problem so try not to worry too much.

 

Someone will look in on you later on today and offer some advice/help.

[dx100uk]

little tip

stay off that phone!

 

 

crs are nothing but a DCA

they are NOT BAILIFFS

and as with any DCA

they have NO SUCH LEGAL POWERS.

 

 

don't get fleeced!!

 

 

dx

[worldwide3rider]

I manage a gym and it shocks me a company will allow a debt to rock up like this, whether it is disputed or not - how many months membership are they claiming you owe and what amount of notice do they ask for in their TC's?

[kaju1900]

Thanks Dx! I called them as I was so worried and scared, I'm trying to keep a clean credit file as I want to apply for a first time mortgage.

I only called them because the gum manager wouldn't help even though they had instructed CRS. Although in hindsight there was no point calling them.

So technically they have no powers? How do they get away with this? What do I do next?

[kaju1900]

I don't technically owe them anything, I cancelled my membership after the minimum 12 month term was completed, in fact it was 14 months. Theres no breakdown of the charges except that £97.20 is an admin fee for CRS. My monthly membership was discounted to £25 per month. I guess seeing as they've had no money from me since February, the last 6 months plus charges.

In fact Golds took 2 months extra money from me after the 30 days notice period, for Jan and Feb even though I wasn't using the gym. I cancelled on the 14th December and that 30 day notice period should have prevented the next payment going out on the 15th but GG still took it.

It's funny how they've lost my cancellation letter.

[worldwide3rider]

I would ask GG for a print out of your attendance and send that with a letter to CRS explaining the situation saying you dispute they money owed and that they would need to prove to you that you didn't cancel as you have outlined and that you would like details of how GG ensure handwritten cancellations (that they request) cannot be lost due to human error or similar, stating that you feel you are a victim of their systems

 

GG would have sold the debt to CRS so they will chase you and use scare tactics, just hold your ground and keep a copy of everthing you send to them

 

I assume you did not alert GG to the fact they charged you in Jan and Feb when they shouldn't have as this would have prevented this?

[slick132]

Hi Kaju and welcome to CAG

 

As said above, stay off the phone completely as this will get you nothing, except frustrated.

 

Worldwide3rider is not quite right. The gym will say it's not their problem and that you have to deal with CRS. But CRS will not have bought the "debt" at all. More likely, the gym's DD's are handled by Harlands who pretend that CRS are a separate debt collection agency. But they are really Harlands, using the CRS letter headed paper.

 

You should have given the gym or Harlands a month's notice before cancelling, even though the agreement was past the initial 12 month minimum term.

 

If your letter was dated 14th December, you were obliged to pay one final DD in Dec'r or Jan 2015. If you paid any DD after that, contact your bank and tell them the DD was taken without authority and you require a refund under the DD Guarantee Scheme. The bank will refund easily.

 

Once that's done, let us know and we'll tell you what to write to Harlands/CRS.

 

In the meantime, ignore any contact from Harlands/CRS and do not bother calling or visiting the gym again as they will not help you end this.

 

[worldwide3rider]

Hi Kaju and welcome to CAG

 

As said above, stay off the phone completely as this will get you nothing, except frustrated.

 

Worldwide3rider is not quite right. The gym will say it's not their problem and that you have to deal with CRS. But CRS will not have bought the "debt" at all. More likely, the gym's DD's are handled by Harlands who pretend that CRS are a separate debt collection agency. But they are really Harlands, using the CRS letter headed paper.

 

You should have given the gym or Harlands a month's notice before cancelling, even though the agreement was past the initial 12 month minimum term.

 

If your letter was dated 14th December, you were obliged to pay one final DD in Dec'r or Jan 2015. If you paid any DD after that, contact your bank and tell them the DD was taken without authority and you require a refund under the DD Guarantee Scheme. The bank will refund easily.

 

Once that's done, let us know and we'll tell you what to write to Harlands/CRS.

 

In the meantime, ignore any contact from Harlands/CRS and do not bother calling or visiting the gym again as they will not help you end this.

 

 

I am not saying the issue is with GG and that's where the battle is, All I am suggesting is kaju900 asks them for an attendance list to prove she wasn't going at the time they claim she owes money to refer to the debt collection agency or to use in case any further action from the debt collection agency is taken and to do this asap

[worldwide3rider]

Just foundthis in the terms and conditions, from my understanding after the minimum termthey would have charged you for 1 month and the membership should be cancelled - I would ask in your dispute letter why this didn't happen

 

Anymember who Ceases to pay monthly by variable direct debit will be sent onewritten notice by the proprietor requesting payment, and

if 14 days after such notice the outstanding subscription fee has not been paid,the membership may be cancelled at the discretion of the proprietor and theremainder of the subscription due for the period from such cancellation untildateshall be forthwith due and payable.

 

 

 

 

 

[kaju1900]

Thanks worldwide3rider. Is this from Golds Gym?

[kaju1900]

There won't be an attendance list as I never used the gym and haven't done even when I had active membership. I work too far away and with my shift patterns, getting to the gym was an issue.

[worldwide3rider]

That was from the golds gym website today.

 

If your attendance list shows nothing that could work in your favour as you can prove you never went but paid your 12 months contract as per the agreement.

[kaju1900]

Hi Slick132,

Thanks for the welcome!

You're right, it is CRS headed paper and at the bottom of the letter, it sates that CRS is a trading title of Harlands. The final DD should have been the January one but they continued to take 2 further payments. I contacted the bank to inform them that this membership was cancelled so not to pay any more DD's. I can't remember if the bank refunded me for those DD's but I will check with the bank and ask them to refund them if they haven't already.

CRS are sharks as are Golds Gym. Its an awful gym with shoddy customer service.

[citizenB]

http://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx

 

^^^ Direct Debit Guarantee

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

 

The Financial Ombudsman securing compensation for someone who cancelled a DD yet the bank still continued to pay them.

[kaju1900]

I did call Golds about the extra payment taken but they didn't help at all. I was told by the receptionist that she couldn't do anything and to contact my bank. Which is what I did.

My attendance from Oct 13 to Dec 14 would have been very thin - I hardly went but I still paid up monthly and cancelled after 14 months with 30 days notice.

[kaju1900]

Hi Kaju and welcome to CAG

 

As said above, stay off the phone completely as this will get you nothing, except frustrated.

 

Worldwide3rider is not quite right. The gym will say it's not their problem and that you have to deal with CRS. But CRS will not have bought the "debt" at all. More likely, the gym's DD's are handled by Harlands who pretend that CRS are a separate debt collection agency. But they are really Harlands, using the CRS letter headed paper.

 

You should have given the gym or Harlands a month's notice before cancelling, even though the agreement was past the initial 12 month minimum term.

 

If your letter was dated 14th December, you were obliged to pay one final DD in Dec'r or Jan 2015. If you paid any DD after that, contact your bank and tell them the DD was taken without authority and you require a refund under the DD Guarantee Scheme. The bank will refund easily.

 

Once that's done, let us know and we'll tell you what to write to Harlands/CRS.

 

In the meantime, ignore any contact from Harlands/CRS and do not bother calling or visiting the gym again as they will not help you end this.

 

 

Hi Slick132, could you tell me what to write to Harlands/CRS. I'm contacting the bank for a refund of the Feb DD.

[kaju1900]

Would the financial ombudsman deal with my issue? As in with Golds Gym?

[citizenB]

Would the financial ombudsman deal with my issue? As in with Golds Gym?

 

You would first need to make a complaint to Golds Gym and for them to advise that they will no longer deal with your complaint (deadlock letter). Although I think you have said they have already advised that you need to speak to CRS, so I guess you could make your complaint to the Ombudsman and let them know that Golds will no longer communicate with you.

 

How did you cancel your DD instruction with the Bank ?

 

In the first instance with the Bank, you will need to confirm that despite you cancelling the DD on DATE - they continued to make payments, that under the DD and that you would like those payments refunded to your account.

 

You would then let the Ombudsman know that the Bank are refusing, if they don't.

[kaju1900]

You would first need to make a complaint to Golds Gym and for them to advise that they will no longer deal with your complaint (deadlock letter). Although I think you have said they have already advised that you need to speak to CRS, so I guess you could make your complaint to the Ombudsman and let them know that Golds will no longer communicate with you.

 

How did you cancel your DD instruction with the Bank ?

 

In the first instance with the Bank, you will need to confirm that despite you cancelling the DD on DATE - they continued to make payments, that under the DD and that you would like those payments refunded to your account.

 

You would then let the Ombudsman know that the Bank are refusing, if they don't.

 

Okay, thanks citizenB. I think my bank will refund me the un authorised DD.

Who regulates CRS/Harlands? Is there no body that regulates these DCA's? Surely this sort of behaviour is illegal?

[slick132]

I am not saying the issue is with GG and that's where the battle is, All I am suggesting is kaju900 asks them for an attendance list to prove she wasn't going at the time they claim she owes money to refer to the debt collection agency or to use in case any further action from the debt collection agency is taken and to do this asap

 

It doesn't matter if OP used the facilities or not. The gym and Harlands will say fees are payable because they deny OP cancelled in December. As happens so often, the gym or admin company are saying the cancellation letter has been "lost".

 

Any member who Ceases to pay monthly by variable direct debit will be sent one written notice by the proprietor requesting payment, and

if 14 days after such notice the outstanding subscription fee has not been paid,the membership may be cancelled at the discretion of the proprietor and the remainder of the subscription due for the period from such cancellation until date shall be forthwith due and payable.

 

I believe this refers to a m/ship being cancelled due to non-payment during the minimum initial m/ship period. In such cases, the full amount due for the minimum period is payable if payments are not made on time.

 

So I doubt this will help at all.

[slick132]

Hi Kaju,

 

Your attendance at the gym is not relevant at all.

 

Please follow my advice in post #8 above.

 

Contact the bank and seek a refund of any DD(s) paid more than 30 days after you handed in the cancellation letter.

 

When you get that refunded, we can draft a letter to send Harlands.

 

[kaju1900]

Hi slick132,

 

Thanks for your response. So the bank will refund me for the Jan and Feb payment which totals £50. Both payments were taken more than 30 days after the cancellation letter and my visit to the gym to give notice in person.

 

I'd really appreciate your help in drafting a letter. I can't shake this worry. I'm scared. It's unbelievable that they can demand so much money when the membership was cancelled after the contractual term was completed.

I can scan the letter from CRS and post on here if that helps. They've got the text in bold red capital letters and it just looks menacing.

[dx100uk]

that's why they do it in red

 

No dca has any legal powers like bailiffs

Esp if they don't even own the debt

Like this lot

 

Sleep easy and never fall for their scary threat o grams

Dx

[kaju1900]

Thank you Dx100UK,

 

Your words are re-assuring.