One on One Fitness cancellation (DFC)

[CynicalSparrow]

Hi guys,

 

I've been doing some general reading of the forum and have become aware of the lack of legal powers DCA's possess and that fact that there hasn't been a court case in a long time, however, I would appreciate your advice on my particular situation.

 

I joined a gym (One on One Fitness) on the 17/4/18 so the minimum period (12 months) is up soon.

 

The issue I'm struggling with, however, is that I signed up on a promotional rate which required a 36 month term. This is explained to be separate from the minimum 12 months but it is stated that if the membership is cancelled then I'll be required to pay the difference between the promotion and normal prices.

 

For example, the promotion was £12 a month instead of £24. In the minimum period I would have paid £144 but cancelling would incur a charge of another £144 to make it up to the non promotional price.

 

This seems completely non sensical to me but I'm not 100% sure of how this works as its the first time I've come across something like this.

 

The company handling the membership fee's is Debit Finance Collections plc (DFC) which I have seen being mentioned with increasing frequency around here lately.

 

If there's anything Ive forgotten to add, please ask and I'll clarify. I'm somewhat prone to anxiety and stress so I'm hoping to put this behind me as quickly as possible so that I can get on with things with one less thing on my mind.

 

Thanks.

[dx100uk]

Doesnt matter simply let one payment be taken after you tell the gym in writing you are cancelling

when that is taken close the DD

[CynicalSparrow]

Thanks for the reply.

 

As far as writing a letter, anything I need to include? 

 

Or is it just a case of “I’m cancelling after the next payment, I’m letting you know as a courtesy”, something to that effect?

 

Sorry for the questions but I’ve not done this before, obviously. 

 

Thanks. 

[dx100uk]

no that's not what I said

read it carefully again..

 

 

 

 

[CynicalSparrow]

So just tell them I’m cancelling and leave out the “after the next payment” then? 

 

Then when it’s taken later this month, simply cancel the DD? 

[dx100uk]

yes and why do you do it that way around?

 

dx

 

[CynicalSparrow]

Basic etiquette I assume? 

 

Or is there a legal reason? 

 

I appreciate your advice so far by the way, I’m drafting the letter as we speak. 

[dx100uk]

I thought you'd said you'd read a good few threads??

 

yes std practice is you must give 30days notice, so in that time an additional DD will obv be owed and should be paid.

THEN cancel the DD when that has happened

 

and as far as I know that is the end of it and you can ignore everyone,

 

theres an ashbourne case hear I think slick132 quotes whereby these 36mth contract were to all intend and purpose deemed unlawful or whatever,

 

 

[CynicalSparrow]

Ok cheers, appreciate it

[slick132]

Hi C Sparrow and welcome to CAG

 

We have seen cases about DFC recently, but the principles have been the same for many years.

 

We maintain any m/ship agreement over 12 months is unfair to the consumer and can be contested. The OFT gained a ruling about this is 2011 against AMSL - 

 

 

Tell the gym NOW by letter that you intend to leave as soon as the 12th monthly payment is made to them. After that payment is taken by DD, cancel the DD mandate via your bank.

 

Read this guide first - 

 

 

The letter to the gym can be v simple :-

 

Dear sir or madam,

 

I will allow the 12th payment to be paid by my bank. I will then cancel my DD mandate and this is my notice to end my gym membership.

 

I will not honour a gym agreement in excess of 12 months after the High Court ruling in the case of The OFT -v- Ashbourne Mgt Services Ltd in 2011.

 

Yours faithfully,

 

Don't get involved in any further comm'ns with the gym or DFC until you report back.

 

[CynicalSparrow]

Really appreciate this pal, much thanks.

 

I’ll report back regarding the response.

 

Cheers!

[CynicalSparrow]

Update:

 

Gym phoned me about 20 mins ago (had to answer as I didn't recognise the number, was from a mobile) saying they'd received my letter and were trying to give me a number to call (I assume the debt company) saying that I could simply tell them to cancel the membership since it's over 12 months and they'll do it now. 

 

I just told the guy what I said in the letter and nothing more as I have a feeling if I cancel through them they'll try to make me pay the other half of the membership fee due to my promotional rate.

 

Guy on the phone seemed to think my contract was for 12 months and canceling it was fine, whereas the actual contract says 3 years.

 

They actually used another company to do the recruiting in the promo period and they handled all the drawing up of contracts and such as the gym was just getting off the ground. Don't know if that's standard practice or if that info is useful but there we go.

 

I'm still going to wait until the payment on the 25th and then cancel the DD mandate.

 

I assume cease all non written (letter) contact from now then?

[dx100uk]

correct!!

[slick132]

Hi CS,

 

It's normal for a Promo Co to deal with sign-ups on behalf of a gym but the Promo Co won't give a hoot about how they get folk to sign. They may tell you anything to get you to join, whether it's true or not. They don't care about what trouble this lands you in.

 

If you're called again by anyone about this matter, tell them, "In writing only." then hang up !! Discuss nothing by phone and keep everything in writing.

 

[CynicalSparrow]

Hi guys, small update here.

 

Received text message on Wednesday just gone (the 29th) from DFC saying account is overdue with a link to pay, also an email on Tuesday (the 28th) saying the same thing with a £15.00 fee slapped on for good measure. 

 

They state if this isn't paid within 7 days of the date of the email (so the 4th of June) then it'll incur another £15.00 "as per the terms of your agreement".

 

Considering I've cancelled in writing as per Slick's letter outline (Royal Mail signed for) with 30 days notice (received confirmation of delivery) and am outside the 12 month minimum contract period, I'm not sure what they're harping on about.

 

I'm going to assume it's all noise at this point and that I'm safe to ignore any further communication?

[dx100uk]

you should already have blocked and counced all emails and be reporting and blocking their texts as spam.

[slick132]

Yup, safe to ignore their begging msgs 

 

[CynicalSparrow]

Me again, this is their latest offering, despite the guy from the gym saying it was a 12 month contract, they’re stating 36. Still safe to ignore?

 

Ive reported their messages as spam but they still seem to be coming through oddly enough. 

 

“We note that you have not brought your payments to One on One Fitness up to date, despite two reminders.

The position now is that you owe £69.00, including fees.

 

You have an agreement with the service provider that commits you to pay for the services for an initial term of 36 instalments and the service provider is entitled to take legal action to enforce the terms of that agreement.

 

This could result in legal costs and require you to make all the payments due under the remaining period of the agreement.

Your service will be suspended until your payments are brought up to date.

 

We look forward to receiving your payment within the next seven days.

Please click on the following link to make a payment online: https://pay.debitfinance.co.uk/Z... or contact us on 01908 422 007

Yours sincerely

Administration Team”

[slick132]

Hi CS - totally safe to ignore, for sure, based on our experiences here with gym contracts.

 

If they make further threats, let us know but I doubt it'll be anything to worry about.

 

 

 

[CynicalSparrow]

Hi guys,

 

More info incoming.

 

DFC have now sent me a letter stating that failure to communicate with them leaves them with no option but to enforce the agreement. 

 

They’re asking me to repay the debt of £333.00 and state that failure to respond will result in my file being passed to a debt collection agency (I was under the impression that they were a DCA themselves, so this is confusing). 

 

They’ve sent me a tear off slip and instructions to pay along with all the official sounding language and a printed signature of the customer services manager stating ‘without prejudice’ in block capitals.

 

Since this is written communication, what’s my next move here? 

 

Cheers

[dx100uk]

ig and nore

they cant 'enforce' anything.

there is nothing to 'enforce'

[slick132]

DFC are the gym's DD collection agent. They're not a DCA although they'd like you to think that, so you'd be frightened of them.

 

Just because they've now written to you does NOT change anything - they cannot enforce the gym agreement themselves ! They can only pester you or beg but only a court can give them the power (a judgement against you) to enforce and that just won't happen.

 

Ignore this latest threat-o-gram !!

 

[CynicalSparrow]

Thanks, I appreciate the response.

 

One thing has been bothering me though.

 

As i mentioned above, i signed up at a promotional price, and it states in the contract, and i quote -

 

"If you have selected a contract term which is greater than 12 months, you may cancel your contract after 12 months with 30 days written notice but must pay the balance between the highest monthly membership option at the time of cancellation, less the amount you had already paid on the longer term contract. For example, lets say you chose a 36 month promotional price option of £20 per month rather than the clubs month by month price of £30 per month and then decided to cancel at month 17. You would be required to pay the difference between 18 months x £30 a month (£540) less the 17 months at £20 a month (£340) that you had paid. Thus £540 less £340 would mean that there would be a £200 balance to pay."

 

I cancelled after 12 months with 30 days notice and proof of postage and signature on delivery.

 

Does this not mean that I should be still liable for the other half of the promotional period? Or is it null and void due to the contract being 36 months?

 

Non of the DFC communication has mentioned this promotional charge, just the direct debit being cancelled.

 

This leads me to believe that the gym simply havent cancelled my membership as requested and not told DFC in the hope they bully me into paying.

 

Does this sound about right?

[dx100uk]

and what can they do about it?

 

dx

[slick132]

Hi CS,

 

My take on this is simple - any gym agreement in excess of 12 duration is not enforceable after The OFT won their case against AMSL in 2011.

 

I think they're trying it on with you because they earn far more from admin fees (penalties) than they do from a percentage of the monthly gym fees they collect by DD.

 

Do not worry about the cancellation and how it was handled by the gym and/or DFC - just ignore them but keep us posted.